Coles has unleashed its latest weapon against supermarket rival Woolworths, offering customers – new and old – rock-bottom prices on fruit and vegetables.
There is concern from farming and agriculture groups that the aggressive discounting of 50 per cent on fresh produce lines is unsustainable long-term.
Coles spokesman Jon Church disagreed.
“We have a different relationship with our growers than most other retailers – ours grow specifically for Coles. We can plan in this sort of promotion,” Mr Church said.
“We’ve been in negotiation with them [growers] for months. There is so much produce at the moment because we’ve had a bumper growing season and a lot were worried about how they were going to move it [the produce].”
Discounted fruit and veg prices for Victoria
- Truss tomatoes - $1.70 500g pack
- Asian vegetables - $1 per bunch
- Sundowner apples - $1.95 per kilo
- Carrots - $0.94
- Rockmelon - $1.50
- Limes – 6 for $2
- Cauliflower - $1.72 each
- Sweet potato - $1.98 for 1kg bag
- Peaches - $2.96 per kilo
- Red seedless grapes - $2.65 per kilo
But the peak body representing vegetable growers, AusVeg, said the announcement was ''concerning'' because, while an oversupply of produce this season meant some growers would benefit in the short-term, it was unclear what impact the price reduction would have on the industry over time.
AusVeg spokesman William Churchill said the push by the major retailers to capture market share would put pressure on other growers who did not supply Coles, as competitors tried to replicate the offer to their customers.
''We can see that the supermarket wars have well and truly arrived in the fresh produce industry and this fight will get savage," Mr Churchill said.
Asked if Coles was worried about the potential impact on smaller greengrocers, Mr Church replied: “Those guys have competed with Coles for a very long time.
“They have a different range, different products and a different way of doing things. They are very good at what they do for their customers.”
Coles is due to announce its second-quarter sales on Thursday.
Woolworths, which is yet to reveal if it will match Coles’ latest round of discounting, will announce its second-quarter sales today.