Vegemite, Cornflakes and Milo are among more than 40 new products added to Coles' discounted Down Down range.
The supermarket chain's growing focus on its Down Down range is supported by Coles customer research which found that three out of four Australians purchase big brands when they're discounted.
Coles merchandise director, John Durkan said "Australian customers want lower prices, but do not want to sacrifice their favourite big brands. It has been fantastic to work with these great suppliers, who like us are looking to deliver even more value to Australian customers every day."
Additions to the range include:
- Kraft Vegemite (600g) was $7.99 now $7.00 – down 13 percent
- Old El Paso Taco Kit (290-405gm) was $6.25 now $5.50- down 12 percent
- Nestle Milo (1.25kg) was $13.85 now $12.00 – down 14 percent
- Kellogg’s Cornflakes (725g) was $5.25 now $4.00 – down 24 percent
While consumers might welcome the discounts at the checkout, the supermarket giant has copped criticism for its heavy discounting, especially after its last round of product discounts was announced.
In January, Coles added more than 100 private-label products to the range, prompting the Australian Food and Grocery Council to accuse the chain of looking after itself rather than its suppliers.
The AFGC's arguments was strengthened by research released by Coles which found that its product range dropped 11 percent from 62,000 products to 55,000 from mid-2010 to mid-2012.
"These figures confirm what shoppers report anecdotally – that they often can’t find their favourite products on the shelves any more when they go to the major supermarkets," said AFGC's chief, Gary Dawson.
"The latest aggressive campaign by Coles to promote their private label products is a sign that this trend will continue."
Coles quickly responded however, arguing the AFGC was only telling half the story.
A statement issued by Coles read "Unfortunately, the AFGC have ignored the detailed Deloitte analysis about why and what has happened in Coles’ supermarkets and the Deloitte conclusion because it does not suit their story. The Deloitte report concludes: '…effective choice in the store is still high and consumers may be better off overall'".
Coles went on to add that branded products make up 75 percent of all products sold in its stores.