Woolworths’ new strategy aims to boost local producers and small businesses
Woolworths has announced its new Local Food Sourcing Strategy, which aims to bring more locally produced foods to the shelves of Woolworths’ supermarkets across Australia.
The new strategy will see the introduction of new Australian brands from small and medium sized businesses, on a supply level that can be reached by the individual company.
Woolworths Managing Director Tjeerd Jegen said that Woolworths would appoint Local Sourcing Managers for each state to identify local products, host local sourcing shows, and develop individualised plans for local suppliers.
“We recognise that supplying 890 Woolies stores can be a daunting prospect for small and medium businesses, and may simply be beyond the reach of their production capacity,” Mr Jegen said.
“Woolworths’ Local Sourcing Managers will work with these suppliers to design a plan that suits their business, whether that’s supplying 3 stores, or 300 stores,” he added.
One of the newest local suppliers, Eric Robinson of the Port Macquarie Food Co. said that it was a great experience for his ‘small business.’
“We are passionate about supporting our community – that’s why we source all of our ingredients from local growers. With our products on the shelves of 43 Woolies stores, we will be able to share the flavours of our community with a much wider group of customers,” Mr Robinson said.
The first range of locally sourced products that will arrive on Woolworths shelves in late January 2013 are:
- Hank’s Jam from Brookvale in Sydney, NSW will be stocked in 278 stores
- Port Macquarie Food Co. from Port Macquarie, NSW will be stocked in 43 stores
- Blue M Jam from the Blue Mountains, NSW will be stocked in 32 stores
- Hill & River Jam from the Hunter Valley, NSW will be stocked in 17 stores
- Officers’ Mess Conserves from Daylesford, VIC will be stocked in 50 stores
- Yarra Valley Gourmet from the Yarra Valley, VIC will be stocked in 76 stores
- Country Cuisine Jam from Daylesford, VIC will be stocked in 30 stores
- Rhu Bru Jam from Scottsdale, TAS will be stocked in 3 stores
- Tasmanian Gourmet Kitchen from Longford, TAS will be stocked in 3 stores
I’d much rather Woolworths start paying local producers what they’re worth before introducing more of them onto the shelves. And speaking of shelves, why not put back all of the popular brands Woolworths has squeezed out in favour of its house brands? There’s a couple of food strategies right there…
Call me cynical but how long will this last? How long will these boutique businesses be able to continue supplying until they too are asked to reduce their prices?
The strategy is obvious, take some of the share away from the popular farmer and producer markets that are booming around the country. The reason it will fail is that those people who already shop at a supermarket don’t care where their food comes from. Those that shop at farmers markets do and won’t switch to a supermarket simply because a supermarket can never replicate the experience of a farmers market.
I can see, as supermarkets demand price reductions and increased shelf life, many of these local products will lose their attraction and quality as they take short cuts to produce a product that the supermarket find acceptable.
Whilst I applaud Woolworths new policy on local sourcing, but would like Woolworths to seriously consider the far reaching impacts that generic milk pricing at $1.00 a litre is having on dairies all around Australia. Instead of insisting on heeling Coles on a marketshare war, a genuine and positive contribution could be made by looking at the devastating effects on the supply chain where the initial producer of the goods are getting a paltry reward. The unfortunate result of the one sided appeal to value through customers is the fact that dairy farmers are disappearing and sustainability issues are rife. Please attend to the situation in your backyard Woolies – it is becoming serious.