Supermarket home brand push could hurt Australian suppliers

A push by supermarkets to replace branded products with home brands could lead to other manufacturing plant closures, following Heinz’s decision to shut its Victorian factory, industry leaders have warned.

Australian Food and Grocery Council chief Kate Carnell said further plant closures were inevitable as the strong Australian dollar made imported food cheaper and supermarket giants Coles and Woolworths sought to increase their in-house grocery ranges.

"The cost of manufacturing in Australia is going up at a significantly higher rate than the prices suppliers can get for their goods from the major supermarkets, and they are also competing with imports which are cheaper than ever thanks to the stronger Australian dollar," she said.

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