1. News
August 29, 2018

Metcash signs supply agreement with Foodland Supermarket

Australian grocery distribution and marketing firm Metcash has entered a long-term supply agreement with Foodland Supermarket to supply groceries to Foodland supermarkets across South Australia.

Australian grocery distribution and marketing firm Metcash has entered a long-term supply agreement with Foodland Supermarket to supply groceries to Foodland supermarkets across South Australia.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Foodland Supermarket is the governing body for independent Foodland supermarket retailers in South Australia.

As part of the agreement, Metcash will supply groceries from its new distribution centre in South Australia for a period of ten years.

The company announced plans to establish this distribution centre in May, during which it has signed a long-term supply agreement.

The latest deal excludes Drakes Foodland supermarkets in South Australia, as it opted not to make a commitment to have its supermarkets supplied from Metcash’s distribution centre.

The agreement is conditional on Metcash entering a lease agreement for the new distribution centre before 21 December.

“Both companies are now planning to implement the ten-year supply contract with the remaining Foodland retailers in South Australia.”

The company has also signed long-term supply agreements with Foodland multiple store owners such as Romeo’s, Chapley’s, and other members of the Foodland board.

Both companies are now planning to implement the ten-year supply contract with the remaining Foodland retailers in South Australia.

Metcash offers merchandising, operational and marketing support to independent retailers across food, liquor and hardware domains.

The company currently supports a network of more than 1,600 independently owned stores from various brands such as IGA and Foodland IGA brands in the food sector.

It also features around 2,700 stores under independent liquor retail brands, including Cellarbrations, The Bottle-O, IGA Liquor, Duncans, and Thirsty Camel.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.