In the Australian retail landscape, frozen peas serve as a familiar item in domestic freezers. Consumers navigating the freezer aisles of major supermarkets might encounter "Australian grown" labels prominently displayed on home-brand products. A closer inspection reveals alternative options branded with 'farm' in their name, offered at a reduced price. These products, upon examination of their packaging, list multiple countries of origin, revealing their association with supermarket giants Coles and Woolworths.
Dr. Louise Grimmer, a retail marketing academic, has monitored the emergence of "phantom brands" within these supermarkets. According to Dr. Grimmer, these supermarkets have developed ranges that, while appearing independent, are actually owned by Coles or Woolworths. These phantom brands serve to fill the price gap between the most affordable private-label products and the pricier national brands. Notably, peas under the Woolworths' Bell Farms and Coles' Four Farms brands are priced lower than the supermarkets' own brands, presenting a cost-effective alternative amidst tightening budgets.
Dr. Grimmer highlights that the strategy behind phantom brands is twofold: it aims to capture greater market share and to create an illusion of extensive choice for consumers. However, she cautions that this trend could diminish consumer choice and potentially displace local products from supermarket shelves. The shift towards imported peas, exemplified by Coles discontinuing its contract with Tasmanian vegetable processor Simplot, underscores the challenges faced by local pea farmers in Tasmania, the sole producer of Australia's green processing peas.
Source: abc.net.au