BLAIR SPEEDY
June 28, 2013
The Australian
SUPERMARKET giant Woolworths is ramping up its charm offensive as it seeks to convince shoppers and the competition regulator that it’s doing the right thing by suppliers.
The company is adding photos and details of its Australian fruit and vegetable suppliers to its packaged produce lines, with QR codes customers can scan to access additional information.
Head of produce, Paul Harker, said the “Meet the Grower” initiative was aimed at reminding shoppers that the majority of the fruit and vegetables stocked by Woolies comes from Australian farmers.
“A lot of people don’t appreciate that most of the fruit and vegetables they get in this country is grown right here, with the exception of truly counter-seasonal things like cherries in winter,” Mr Harker said.
The move comes amid an investigation by the Australian Competition and Consumer Commission into allegations Woolies and arch-rival Coles have misused their market power to force suppliers to cut prices to unsustainably low levels.
But Mr Harker denied the new packaging was aimed at portraying the company’s relationship with suppliers in a positive light.
The retail giants have also been the targets of strident criticism over dollar-per-litre milk, which dairy farmers say is pushing them towards bankruptcy, and the foreign sourcing of products such as tinned tomatoes at a time when local canneries are being forced to close.
Woolies revealed in March a plan to sell milk sourced direct from dairy producers under a label with a working title of Farmers Own, while Coles has signed a 10-year milk supply agreement with farmers’ co-operative Murray Goulburn that it says will directly benefit primary producers.
Scott Montague, from Victorian fruit grower Montague Fresh, said he was happy to have his face on Australian-grown apples to be sold in Woolies.
“A lot of people think the apples they buy are imported, so we welcome this . . . most people want to buy and support Australian-grown,” he said.
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