South Africa’s Woolworths Holdings is laying the groundwork for an expansion into Australia’s food and grocery market, according to The Australian.
The national paper has reported that one of Woolworths Holdings suppliers, In2Food, has inked a joint venture with Victorian fresh produce wholesale supplier Yarra Valley Farms.
In2Food’s Australian business Inspired Foods also has a facility in the works for Bankstown in New South Wales to support Woolworths Holdings move into the country.
Woolworths Holdings CEO Ian Moir said the South African company is planning to work with department store chain David Jones to offer high-end groceries and packaged food.
“We are building the business, we have got some of our suppliers from South Africa who have come over and they have invested in joint ventures in this marketplace, we are building a supply chain, we are employing people, we are putting a team together,’’ Moir told The Australian.
David Jones has said there is a gap in the Australia market from premium food and grocery, with CEO John Dixon restructuring the company’s management in May with the appointment of Pieter de Waet in the new role as group food executive, while also signed on chef Neil Perry to revamp its foodhalls.
“Dixon has got an executive reporting to him directly on food and he has brought in a team of various people from Australia, the UK, South Africa that are deeply knowledgeable about quality food,” Moir said.
“And you don’t build a great food business overnight, but we will build a great food business and we will invest a lot of money in that food business, and in five years time we will have the most beautiful, desirable, fresh food in addition to a fine dining experience in Sydney and Melbourne.’’
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