UK retailer Sainsbury's has formed a strategic partnership with leading Australian grocer Coles that it says will bring new and innovative products to Coles’ shelves to inspire shoppers.
According to The Telegraph, the effort will be Sainsbury's largest wholesale agreement as it hopes to recover from its failed bid to acquire Asda. The newspaper reports that Sainsbury's food and groceries will appear in more than 2,400 Coles stores, as well as its online platforms. Coles serves 21 million customers per week.
The agreement with Coles marks a key milestone in Sainsbury’s strategy to build its wholesale business, with a number of partnerships already in place in Asia, Europe and the UK.
Michael Luck, director of business development at Sainsbury’s, said the company was delighted to work with Coles to bring more choice to Australian customers.
“Great quality food has been at the heart of our business for 150 years, and we’re excited to bring Sainsbury’s fantastic products to Australia, offering Coles customers a range of high quality, innovative products that they won’t be able to find anywhere else,” he said.
Sainsbury’s supply chain will be a source to help expand Coles’ exclusive Own Brand range. Own Brand is said to be key to Coles and accounts for 30 per cent of sales in its supermarkets. Some 90 of those products won awards for quality during 2018-19. Several of those include vegan and vegetarian ranges under the Nature’s Kitchen, Herb & Sons and Wellness Road brands. The majority of the Own Brand range is grown in Australia, and the company says that won't change.
“We want to accelerate the introduction of innovative products to Coles' Own Brand, and this partnership allows us to do that with a range of food and groceries that are already proven in the international market but not yet available in Australia,” said Greg Davis, Coles' chief executive. “This deal will free up resources for our own product development team so that they can drive further innovation,” Davis said.