Woolies move fuels food fight

INDEPENDENT food distributors feel under threat by supermarket giant Woolworths move to supply directly to schools, childcare centres and retirement villages.

Countrywide Food Service Distributors, NAFDA Foodservice and The Distributors, which together own 266 distribution centres, have asked the Australian Competition and Consumer Commission to investigate what they call predatory moves by the big chains into the multi-billion-dollar food services sector.

Countrywide chief executive Richard Hinson said Woolworths had recently announced plans to launch a food services business-to-business (B2B) platform that aimed to have revenue of $1bn in three years.

He said the move would likely result in the demise of a number of independent wholesale distributors.

“The small end doesn’t have the backing of the big town,” he said.

Coles has denied it is moving into the food services sector. Regarding the B2B platform, a Woolworths spokesperson said many of the potential customers already shopped for key groceries on the supermarket’s consumer website.

“This doesn’t work as well as it should for them or us. We believe they would benefit from having a dedicated website, consolidated invoicing and easy-to-use expense reporting,” the spokesperson said.

The ACCC said was looking into concerns raised about Woolworths’ expansion into the B2B sector. of town financial end of