AU Coles supermarket

Major British supermarket chain Sainsbury’s has agreed a strategic wholesale partnership with leading Australian food and drink retailer Coles.

From early next year, Sainsbury’s will supply its own-brand products to Coles supermarkets across Australia, as well as online. The range will be white labelled under the Coles brand and includes a selection of packaged groceries and household products.

Coles is a leading Australian retailer with more than 2,400 retail outlets, including 800 supermarkets and 700 convenience stores across Australia, serving 21 million customers a week.

Sainsbury's believes there are significant opportunities in the Australian grocery market, as demand for high-quality, innovative own-brand products is growing. The new partnership means that Coles customers will now be able to buy innovative own-brand food and groceries that they won’t find anywhere else in Australia, according to Sainsbury's.

The two retailers said they share common values, 'aiming to help customers live well and are both committed to ethical sourcing and high food quality standards.'

The agreement 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.

The partnership will also investigate Australian groceries and alcohol that Sainsbury’s could source through Coles to bring a distinctive proposition to UK customers.

Mike Luck, director of business development at Sainsbury’s, said:“Coles is one of Australia’s leading food retailers and we are delighted to enter into this new partnership with them. Great-quality food, high standards and ethical sourcing are at the heart of both our businesses and we are delighted to work with Coles to bring more choice and innovation to Australian customers. We’re excited by the opportunity to offer more of our fantastic products to customers around the world through wholesale partnerships like this one.”

Greg Davis, Coles chief executive for commercial and Express, said:“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.”