Senator Kim Carr weighs in on supermarket supply debate

Senator Kim Carr, Minister for Innovation, Industry, Science and Research, has responded with grave concern to the claims by supermarket giants Coles and Woolworths that more generic-labelled goods will continue to hit our shelves.

“The house brand share by volume is still less than 20 per cent – but both retailers have made their intentions to expand that offering abundantly clear. This is a trend I have observed with growing concern,” Carr said. 

Many manufacturers who supply branded products to the supermarkets are also manufacturers of the private labels. This can provide some certainty in the short-term, and increase production volumes – but firms who accept these arrangements know full well that they are effectively competing with themselves, potentially cannibalising their own margins and reducing their long-term competitiveness,” he said.

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