Woolworths and Coles dominate Australia’s $2.9 billion fresh bread market

Australia’s $2.9 billion fresh bread market is dominated by the two supermarket companies –Woolworths Group and Coles Group.

These companies represent a combined 51.9 per cent of the fresh bread market, according to the Roy Morgan results for the year to June 2018.

In total, supermarkets now comprise more than two-thirds of the entire fresh bread market with the remaining 31 per cent split between specialty bread shops including Bakers Delight, Brumby’s Bakery, and between delicatessens, milk bars, convenience store and other stores.

Over the past eight years there have been three stand-out performers in the fresh bread market.

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Roy Morgan CEO Michele Levine said although Woolworths and Coles had the majority of the fresh bread market for more than five years, the success of Bakers Delight and Aldi in growing market share showed there was space for nimble competitors.

“The dominance of Australia’s two supermarket giants Woolworths and Coles is well known, with the two now comprising over half the Australian markets for fresh food including fresh meat, fresh fruit and vegetables and fresh bread,” she said.

“Although the two clearly dominate Australia’s fresh bread market, the growth this decade has been led by Coles Group which has significantly increased its market share by 6.2 per cent to 25.3 per cent, while Woolworths is little changed with 26.6 per cent of the fresh bread market,” said Levine.

German supermarket chain Aldi has grown its market share by 3.1 per cent to 7.1 per cent and specialty bread shop Bakers Delight now has a market share of 13.6 per cent, up by 0.5 per cent from June 2010.

“There are two competitors in particular outside the ‘Big 2’ who have grown their share of the fresh bread market and they come from very different origins. Aldi has made a huge impression on the Australian marketplace since opening its first store just over 15 years ago,” said Levine.

“Aldi’s success has been built upon not only discount prices but also a reputation for reliability, meeting the needs of consumers and being honest about what it has to offer. Aldi has consistently rated as one of Australia’s most trustworthy brands including retaining its spot as Australia’s most trusted brand in this week’s Roy Morgan Net Trust Score survey for July,” she said.

Despite facing a resurgent Coles in recent years Woolworths has retained its title as Australia’s largest retailer of fresh bread capturing a market-leading 26.6 per cent of the fresh bread market.

Other outlets for fresh bread including IGA and other supermarkets as well as Brumby’s Bakery and other smaller bread shops and delicatessens, milk bars, convenience stores have also experienced declines in their share of the fresh bread market of 1 – 2.4 per cent.

These results are from the Roy Morgan Single Source survey of more than 50,000 people per annum, including more than 12,000 grocery buyers.

Roy Morgan recently analysed the state of the overall grocery market in Australia, which is valued at more than $100 billion per annum. The latest results show Woolworths and Aldi have been the two best performers in the last year with both gaining significant market share. Further analysis, including the shares of the major supermarkets of the overall fresh food market.


Vaughan Constructions delivers more than $12million in facilities for Fort Knox and Aldi

Vaughan Constructions will deliver more than $12 million in new facilities to Fort Knox, which is a joint venture between the Wilson Family and McMullin Group, and supermarket chain Aldi.

The two new custom-built facilities, which will sit on adjacent allotments on Sydney Road, Coburg North, include Fort Knox’s three level, 13,420 square metre self-storage facility and Aldi’s 1734 square metre store. Aldi will lease this from Fort Knox.

Vaughan’s development manager in Victoria, Chris Telley, said the Aldi development included two additional tenancies that will be let following the completion of the main Aldi store development, which includes 123 car spaces on the 9,180 square metre site.

“We’re delighted that one of Melbourne’s best known developers, McMullin Group, has again chosen Vaughan Constructions as its preferred builder for the Fort Knox and Aldi projects,” said Telley.

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With the new Aldi store, Vaughan Constructions has built more than 100,000 square metres for the German brand.

Fort Knox director, Guy Wilson, said this was Fort Knox’s tenth storage facility in metropolitan Melbourne since its inception in 1996.

It would cater to the increasing demand for a billion-dollar industry, he said.

“Self-storage has really come into its own, especially over the last decade with the increase in higher density living, renting as opposed to owning, and generational lifestyle changes, among the key drivers,” said Wilson.

“This new facility is about responding to rapidly increasing demand and the very positive feedback we have had from our client base,” he said.

The Aldi store is among nearly 150 Victorian stores, and more than 500 Australia wide, built since the first store opened in 2001.

McMullin Group director, Ian McMullin, said Sydney Road was one of the most sought after addresses in northern Melbourne.

“This is an exceptionally well located site that will infinitely enhance the success of both the Fort Knox and Aldi businesses in this part of Melbourne,” he said.

“It’s about location, but it’s also about maximising the potential of the sites with modern, operationally efficient and customer focussed buildings which Vaughan has a reputation for delivering,” said McMullin.

Vaughan Constructions’ portfolio includes some of the largest industrial structures in the Southern Hemisphere, including the Melbourne Southern Regional Distribution Centre for Woolworths.