Woolworths and Coles dominate Australia’s $2.9 billion fresh bread market

Australia’s $2.9 billion fresh bread market is dominated by the two supermarket companies –Woolworths Group and Coles Group.

These companies represent a combined 51.9 per cent of the fresh bread market, according to the Roy Morgan results for the year to June 2018.

In total, supermarkets now comprise more than two-thirds of the entire fresh bread market with the remaining 31 per cent split between specialty bread shops including Bakers Delight, Brumby’s Bakery, and between delicatessens, milk bars, convenience store and other stores.

Over the past eight years there have been three stand-out performers in the fresh bread market.

READ: Survey shows ALDI is the most trusted brand in Australia

Roy Morgan CEO Michele Levine said although Woolworths and Coles had the majority of the fresh bread market for more than five years, the success of Bakers Delight and Aldi in growing market share showed there was space for nimble competitors.

“The dominance of Australia’s two supermarket giants Woolworths and Coles is well known, with the two now comprising over half the Australian markets for fresh food including fresh meat, fresh fruit and vegetables and fresh bread,” she said.

“Although the two clearly dominate Australia’s fresh bread market, the growth this decade has been led by Coles Group which has significantly increased its market share by 6.2 per cent to 25.3 per cent, while Woolworths is little changed with 26.6 per cent of the fresh bread market,” said Levine.

German supermarket chain Aldi has grown its market share by 3.1 per cent to 7.1 per cent and specialty bread shop Bakers Delight now has a market share of 13.6 per cent, up by 0.5 per cent from June 2010.

“There are two competitors in particular outside the ‘Big 2’ who have grown their share of the fresh bread market and they come from very different origins. Aldi has made a huge impression on the Australian marketplace since opening its first store just over 15 years ago,” said Levine.

“Aldi’s success has been built upon not only discount prices but also a reputation for reliability, meeting the needs of consumers and being honest about what it has to offer. Aldi has consistently rated as one of Australia’s most trustworthy brands including retaining its spot as Australia’s most trusted brand in this week’s Roy Morgan Net Trust Score survey for July,” she said.

Despite facing a resurgent Coles in recent years Woolworths has retained its title as Australia’s largest retailer of fresh bread capturing a market-leading 26.6 per cent of the fresh bread market.

Other outlets for fresh bread including IGA and other supermarkets as well as Brumby’s Bakery and other smaller bread shops and delicatessens, milk bars, convenience stores have also experienced declines in their share of the fresh bread market of 1 – 2.4 per cent.

These results are from the Roy Morgan Single Source survey of more than 50,000 people per annum, including more than 12,000 grocery buyers.

Roy Morgan recently analysed the state of the overall grocery market in Australia, which is valued at more than $100 billion per annum. The latest results show Woolworths and Aldi have been the two best performers in the last year with both gaining significant market share. Further analysis, including the shares of the major supermarkets of the overall fresh food market.

 

droughtColes

Coles announces $5 million to help farmers combat drought

Coles is providing $5 million in grants and interest-free loans from its nurture fund to help farmers across Australia combat drought.

In the past year, Coles also provided more than half a million dollars in grants to farmers who applied to the Coles nurture fund to implement initiatives to make them less dependent on rain.

In Coolac, New South Wales, Michael Crowe from Gobarralong Valley Beef used a $400,000 Coles grant to build facilities to manufacture a nutritious animal fodder indoors – making him less dependent on grass and water.

At Oxley Flats in Victoria, Nigel and Hannah Stephens received a $134,000 grant to install a more efficient irrigation system so they could reduce their water use and grow grass-fed beef all year round.

READ: NSW government offers more funding for drought-stricken farmers

Coles also launched a fundraising appeal at the end of July at its checkouts for people to support farmers struggling with the effects of drought.

All funds raised at the checkout will be provided to the Country Women’s Association to provide support to drought-affected families to help cover household costs such as school expenses and food, medical, electricity and water bills.

Coles managing director John Durkan said Coles was keen to do more to support families affected by drought.

“Many of our team members at stores in drought affected communities have heard harrowing stories from customers about the impact of the drought,” he said.

“Our store teams in these communities have helped by collecting donations of non-perishable food or providing gift cards but we wanted to take action at a national level to help more families facing hardship right now and to help farmers to combat drought in the future,” said Durkan.

Coles’ support will involve a fundraising appeal whereby customers can donate $2, $5, $10 or an amount of their choice at any Coles checkout across Australia, and $5 million in grants or interest free.

The company is also supporting its grass fed beef suppliers by buying their livestock as grain fed beef if the farmers have been forced to feed grain to their cattle during the drought.

JOIN OUR NEWSLETTER

JOIN OUR NEWSLETTER
Close