Australian retailer WOOLWORTH‘S strategy of signing longer-term supply contracts has shifted from milk into the highly competitive $2 billion bread category.
Woolworths has signed a $50 million three-year nationwide contract Private Brand bread contract with Australia’s second-largest baker, George Weston Foods, The Australian Financial Review reports. George Weston, wholly owned by Associated British Foods of the UK, has been supplying Woolworths on annual contracts for the last 10 years.
In Australia Private Brand bread currently has 17% penetration of bread sold in supermarkets. But its share of sales has been static for several years, while sales of bread baked in-store has risen to 16% of the market as retailers install in-store ovens.