Producers prefer dealing with Aldi

A number of grocery producers have spoken out – under the veil of autonomy – admitting they prefer dealing with Aldi over the supermarket duopoly.

According to SMH, the producers, who provide groceries ranging from fruit and vegetables to household products, said Aldi pays invoices faster and is easier to work with.

One supplier said Aldi absorbs losses on sales rather than reducing supplier prices or increasing costs, which both Coles and Woolworths are guilty of.

The producers' comments are in response to a dossier produced by Woolworths which claims that Aldi's presence has led to an increase in private label products and a more competitive market for grocery retailers.

The dossier also claims that Woolworths' market share has remained stagnant since 2007, while Aldi's has grown three percent since then.

It says that 95 percent of Aldi's products are private labels, but suppliers insist the German-owned chain still buys from local producers, even paying a premium to do so, and only asks suppliers to compete with other Australian suppliers, not international ones as is the case with Coles and Woolworths.

A spokesperson for Coles insisted the brand has an Australian-first sourcing policy, and usually only looks internationally when an Australian version isn't available or when consumers want an alternative choice.

The ACCC is currently looking into allegations the supermarket duolopy employs bullying tactics in its dealings with suppliers in order to drive prices down. 


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