The One Item That Aldi Will Never Sell In Its Stores
Remember when roast chooks a the supermarket used to be $11? And then suddenly Coles slashed them to $8 and Woolworths decided to go to $7.90.
Well investment bank Morgan Stanley has said the roast chook blitz was designed to attack German supermarket Aldi and its had some good news, with Australia’s biggest chicken producer having its biggest year ever.
"Fresh categories, such as fruit and vegetables, meat, bakery and deli, are a key differentiator for Woolworths and Coles versus [German discounter] Aldi, and a large driver of foot traffic," Morgan Stanley said in its report on Ingham's.
"Aldi's chicken range is far more limited than that of both the majors at present; its focus on a narrow range and very low costs preclude it, for example, from offering customers ready-to-eat BBQ chickens. It does not operate a deli in store, given the high associated cost.
"For this reason, we think Ingham's (and other chicken operators) provide the majors with a product that cannot be offered by Aldi, and thus yields a differentiating factor for such operators.
"Retail supermarkets accounted for 53 per cent of group revenue in the 2016 financial year, and Ingham's likely benefited from supermarkets reducing the price per roast chicken to $8 in January."
Chicken is two of the top five fresh-food products sold in Woolworths, Coles, IGA and Aldi, according to the report but it looms like, due to cost, we will never see them served fresh in Aldi.