Aussie online grocery site: An opportunistic platform for brand owners

By Kacey Culliney

- Last updated on GMT

Aussie online grocery site: An opportunistic platform for brand owners

Related tags: Brand

A new online grocery site offers a competitive advantage for large-volume brand owners, amid pressure from the growing private label trend in Australia.

GroceryRun, launched by CatchOfTheDay, offers a range of branded products with 50-80% off the recommended retail price.

Company co-founder, Gabby Leibovich told FoodNavigator-Asia that the site will be working with international and local “major brands that shoppers know and trust.”

Leibovich acknowledges that Australian consumers are becoming increasingly thrifty and price is currently a key factor driving many purchasing decisions.

The launch of GroceryRun comes after a year-long trial and its business model of discounted, branded groceries resonates with Australian consumers’ desire to save, Leibovich added.

He said: “Shoppers don’t have to buy no-name brands to save. With GroceryRun they can still buy the brands they know and trust and save 50% off their shopping bill.”

With no other online grocery store offering the savings we could offer, we knew there was an opportunity to launch a dedicated grocery site,” ​Leibovich added.

Food sector pressures

Founder and director of consultancy company Strategic Insights, Dr David McKinna, earlier this month told FoodNavigator-Asia that there is currently a strong focus on private label programmes in Australia, mainly fuelled by supermarket ‘price wars’.

He added that it is placing increasing pressure on branded suppliers.

ABF foods, in a trading update earlier this month, reported difficult trading conditions for its Australian division George Weston Foods, noting baking margins were reduced by a much higher level of consumer promotion and a switch to lower margin, private-label bread and in-store bakery.

Kate Carnell, chief executive officer of the Australian Food and Grocery Council (AFGC), told this site last month that there has been a consumption pattern of ‘buying Australian’ for a while, but that the trend is increasingly shifting towards looking for the best value for money.

She added: “In effect, the Australian consumer would still buy Australian, but not at a high cost.”

GroceryRun opens its virtual doors twice a week, on Wednesday and Thursday, which Leibovich said benefits both consumers and manufacturers and is an interesting alternative to the static product and pricing found on traditional online sites.

Leibovich points out that the established nature of CatchOfTheDay, with over 1.5m members, provides a compelling proposition for brand owners looking to move a product quickly.

“For suppliers it provides them with a great way to quickly and quietly move stock without interrupting their existing relationships with other retailers…our sourcing model is based on buying in very large quantities, short sales cycle and paying within 24 hours. It’s a winning combination for suppliers of all sizes,” ​Leibovich said.

Related topics: Markets

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