The secret weapon Coles and Woolies are using to fight back against Aldi

Coles and Woolworths are enjoying extraordinary success with their expanded home brand ranges, which now account for 30-35 per cent of all sales at the major supermarkets.

Home brands have proven to be a winning profit strategy for Australia’s major grocery retailers.

Aussie shoppers are spoiled for choice when it comes to affordable versions of their supermarket favourites, many of which rival Aldi when it comes to their low price point.

Both major grocery retailers have significantly modernised its private-label strategy.

Home brands have moved away from generic-looking packaging to distinct “exclusive brands” tailored to specific tiers, dietary requirements, and departments.

Here is the breakdown of the major Coles and Woolworths home brand ranges, outlining the main differences between each.

Coles

Coles Simply

Coles Simply is Coles’ entry-level range, offering great value on pantry staples, from Coles Simply spaghetti for just 90 cents to Coles Simply two-ply toilet paper for $9 for an 18-pack.

Coles Brand

Coles Brand is their mid-tier range recognised by the iconic red Coles logo is found across the store and provides trusted everyday quality on household favourites and staples.

Items include fresh produce including eggs, meat, fruit, and vegetables.

Coles Finest

Coles Finest, the supermarket’s most successful home brand range, offers a premium and more indulgent selection.

These include speciality cheeses, chocolate, ready meals, restaurant-inspired products, and seasonal products released over Easter and Christmas.

Specialty

Coles Kitchen

This is Coles’ range of popular ready-made convenience meals designed for quick lunches and easy dinners.

They are typically single-serve or used as side dishes and are influenced by global cuisines.

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Coles Nature’s Kitchen

This is the supermarket’s exclusive, plant-based and vegan-friendly range designed to provide affordable, convenient alternatives for those who don’t eat meat.

They are also aimed at those simply wanting to reduce the amount of meat they eat.

Coles PerPerform

Coles PerPerform is Coles’ home brand that focuses on health and fitness.

The range includes pre-made meals, high-protein powders, bars, and snacks.

Woolworths

Woolworths Essentials

Woolworths’ most affordable home brand tier is their Woolworths Essentials, which are affordable kitchen and pantry staples designed to offer a lower price point on a shopping list.

These include pastas, rices, cereals, ice cream, and a wide range of cleaning products.

Woolworths range

The Woolworths range is the supermarket’s flagship, core home brand label, spanning most major categories across the store, including everyday pantry staples, household products, and fresh produce.

This also includes their cook meat range and freshly prepared ready meals, which recently underwent a reset to deliver fresh, quality dinner solutions. 

Specialty

Macro

The supermarket’s Macro range is a premium-tier range focused healthy food products with an average rating of 3.5 health stars or above.

Gold

Woolworths’ premium home brand tier is their gold home brand range, which is most commonly seen during the holiday season.

It includes products with decadent ingredients and exclusive flavour collaborations that champion local growers and producers.

What these multi-tier home brand strategies mean for Aussie shoppers

Consumer expert Gavin Northey from Griffith University has told nine.com.au Coles and Woolworths’ multi-tier home brand strategies are designed to achiever several outcomes.

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Home brands increase supermarket’s market share in an increasingly competitive market, reduces the bargaining power of national brand manufacturers, and wards off the looming threat of Aldi’s increasing market share.

“Ultimately, when you look at the tiered private label strategies across the supermarket category, it’s not about the supermarkets creating brands to compete with each other.

“In effect, it’s supermarket retailers ensuring that in each category, there’s no price point where a consumer would rather shop somewhere else.

“And if you can get a customer in your door to buy the lowest ‘value’ offering, you now have a consumer that is buying into your ecosystem.

“As their income, needs or life stages change, they may move from the value offering to more premium private label offerings, because they already trust the store brand.”