Retail giants lose ground in milk wars

Coles and Woolworths both lost a little momentum in the home brand milk market in the year to March according to Roy Morgan Research.

Home brand milk sales peaked in the year to March 2012, the first full year of data after Coles, followed by Woolworths, introduced controversial $1 per litre pricing, according to the researcher. It found 26 per cent of Australians bought Woolworths' milk in an average four weeks while 24 per cent bought home brand milk from Coles.

However, only 22 per cent of Australians bought home brand milk from each of the retailers in an average four weeks in the year to March 2013.

The companies have maintained a decent slab of the market, however. Sales of Lion's Dairy Farmers and Pura brand milks, which were already on the decline before the pricing battle, according to Roy Morgan Research, both fell for the fifth straight year in the twelve months to March.

These are now bought by only 16 per cent and 8 per cent of Australians respectively, while Parmalat's brand Pauls has remained at 10 per cent. Newer entrant A2 rose from 4 per cent last year to 6 per cent in the year to March.

Although the top two branded white milk brands have declined in popularity, heavy price cuts and fierce competition by supermarket home brands had cemented their place in the market, noted Angela Smith, group account manager, Roy Morgan Research.

“In this changing industry, it is important for milk companies to understand the detailed market trends of their brands and competitors to ensure they remain competitive,” she said.