Inside Aldi’s taste test lab

EVERY day, one of Aldi’s hundreds of products is being thoroughly tested in a secretive lab. We got a look inside, and this is what we found.

Aldi rigorously blind taste tests its private label products.

EVERY three weeks, Aldi’s Farmdale Light Sour Cream is being put through its paces.

In a secretive sampling kitchen inside the German discount chain’s western Sydney headquarters, a team of up to 10 blind taste testers has been pitting the private label product against the market-leading light sour cream brands.

And it’s still not quite right. “We think we can make it a whole lot better,” an Aldi Australia spokesman told a small group of journalists on Tuesday, invited for a rare look inside the facility.

“It uses the same cultures as the full fat version, but for some reason the light sour cream just doesn’t have the same effect versus the [market-leading brands].”

The consistent underperformance has sparked a rethink between the buying team and the local dairy producer. “We’re actually shifting the production from Victoria to Tasmania,” the spokesman said. “It’s the same supplier but a different facility.

“Sometimes tiny little changes in the technique of how they produce a product can change it a great deal, or if the fat protein from the farm is a little different. Tasmania produces some of the highest fat protein milk in the country.”

Inside Aldi’s testing lab

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Every day, at least one of Aldi’s more than 1400 products is being put through the same process. It may be for a mandatory annual test, introducing a new product into the market, a buyer comparing potential suppliers as part of a tender, or if there has been a complaint about product quality.

The products are pitted against the market leaders in their category, with samplers from Aldi’s buying and quality assurance teams scoring the products on appearance, texture and flavour.

“This centre was established in 2009 as part of our commitment to demonstrate that we want to deliver the safest possible product to our consumers and to ensure our products are better than or equal to the market leaders,” the spokesman said.

“This is an ongoing process. We look at every single product in our food range across the year, and every single day we’re in here sampling.

“Although we may have introduced a product and at the time it is market-leading quality, things change. Our competitors are always improving their processes and their products, and we’re doing the same thing.”

If a product underperforms, the quality assurance team will check the score against previous test results to see if it’s a one-off. If it indicates a trend, the team will go back to the supplier to fix the problem.

“Where it would pose a safety risk for any of our customers or the quality is terribly bad, we’ll take proactive steps to remove that from sale until we’ve gotten to the bottom of the situation,” the spokesman said — but added he couldn’t recall that ever happening.

To be clear, this kind of taste testing isn’t unique. At its head office in Tooronga, Coles has extensive sampling labs where it benchmarks its private label products against the market-leading brands.

And in a statement, a Woolworths spokesman said: “The Food Innovators Centre at our support office in Bella Vista is where Woolworths Own Brand products are developed and tested by our customers before they hit supermarket shelves.

“At the centre, products go through the total food development journey, from creation, testing and sensory experiences. At each stage we ensure our customers and their feedback are an essential part of the product development journey.”

But Aldi, which is rapidly eating into Australia’s $90 billion grocery market with expansion into South Australia and WA, claims its products typically come out “ahead or equal” to the market leaders.

To prove it, Aldi invited five journalists to its Minchinbury headquarters to take part in a testing session, sampling and rating a range of starters, alcohol, frozen meals and desserts. Out of 14 product categories, the Aldi exclusive brand scored the highest marks in 10 (see below).

Aldi was beaten in yoghurt, brioche, champagne and camembert.

“Citi found if you shopped across our range you’ll save up to 30 per cent on your entire grocery basket, and even if you compare that now more directly to Coles and Woolworths private label, you’ll save 15 per cent on the Coles mid-tier range and 25 per cent on Woolworths,” the spokesman said.

With such a small range of SKUs (stock keeping units) compared to Coles and Woolworths, which typically hold between 20,000-25,000 per store, Aldi’s products have to test well. Competition for shelf space is fierce.

“We have a very tight range,” the spokesman said. “Currently we have just over 1400 products, so to be part of that range the product needs to perform, because there are far more products on the edges the buyers are considering putting in.”

The company is attempting to fight misconceptions that its range is largely sourced from overseas. Earlier this month, outspoken entrepreneur Dick Smith launched an extraordinary attack on Aldi, accusing the “greedy” and “ruthless” discount retailer of siphoning “hundreds of millions of dollars” to Germany.

Aldi hit back, highlighting that 90 per cent of its grocery range was private label, the majority of which is sourced from Australian suppliers. According to Aldi, 100 per cent of its eggs, fresh meat and poultry, 93 per cent of its dairy range, and 91 per cent of its fresh fruit and veg is Australian grown.

While the consumer watchdog recently raised concerns about how the major supermarkets, including Aldi, often dumped products from shelves with little warning, Aldi says it has consistently rated on top in supplier surveys.

“It really is a partnership,” the spokesman said. “We’re looking for win-win situations with our suppliers. We’re very transparent with them about our intentions, and they are completely aware of what our process is to introduce a product into our stores.

“If the product is successful through quality assurance testing, it will only go into two of our eight regions so we minimise the risk and also get a better indication of what the demand is going to be, so the supplier doesn’t need to go and invest heavily in packaging and manufacturing.

“We trial the products for about a quarter, and we’re in constant communication every week. We distribute the sales results of all the products they supply to us so they can closely monitor their production and inventories.”

The supermarket, which recently announced it would completely overhaul all of its stores over the next four years and revamp its fresh food offering, says it has already seen an uplift in sales. “Customers are definitely responding to the changes we’re making,” the spokesman said.

“They are purchasing far more fresh meat than they have historically. We’re gaining a lot more penetration in the market because our store network is growing. Consumers themselves are shopping more regularly but purchasing less per occasion.”

But asked whether there were any plans to improve the checkout experience — the most common gripe from customers — he said Aldi “has a philosophy to be a simple organisation and to keep costs out of the business so we can invest that and reward customers with the lowest price”.

“We’re always looking for ways to make the shopping experience more convenient,” he said. “At the moment, there are no plans to change [the check-outs].”

ALDI BLIND TASTE TEST SCORES

• Camembert

183: Unicorn Camembert Brie Cheese 125g $4.00

163: Emporium Selection Camembert 125g $2.79

154: Tasmanian Heritage Camembert 125g $5.00

• Feta

191: Emporium Selection Persian Feta 180g $3.99

186: South Cape Classic Persian Fetta 180g $9.30

185: Yarra Valley Persian Fetta 350g $7.99

• Cheddar

181: Emporium Selection Aged Cheddar 250g $3.99

179: Cracker Barrel Extra Sharp 20 Month 250g $6.50

• Guacamole

170: Deli Originals Guacamole Dip 200g $1.89

127: Black Swan Guacamole Dip 200g $4

• Crackers

185: Lavosh Flatbread — Caramelised Onion 100g $2.99

135: Tuckers Caramelised Onion Lavosh Crackers $3.99

• Wafers

186: Damora Fine Wafer Cracker Natural 100g $1.79

172: Water Thins Fine Wafer Cracker Natural 150g $3.19

• Chicken

146: Farmwood Frozen Chicken Breast Tenders 400g $3.69

139: Steggles Tenders 385g $7.80

134: Inghams Tenders 400g $7.99

• Salmon

158: Ocean Royale Premium Frozen Salmon Fillets 250g/2pk $6.49

129: Bird’s Eye Salmon 2pk 270g $10.99

96: Tassal Natural Salmon Fillets 130g $9.99

• Champagne

167: Duperrey Premier Cru Brut Champagne Non Vintage 750ml $35

165: Moet & Chandon Brut Champagne Non Vintage 750mL $40

153: Monsigny Champagne NV Premier Cru 750ml $29.99

• Shiraz

165: Blackstone Paddock “The Player” Barossa Shiraz 2015 750ml $12.99

162: Pepperjack Barossa Shiraz 2015 750mL $17

149: Jacobs Creek “Double Barrel” Barossa Shiraz 2014 750ml $17.80

• Riesling

158: Peter Mertes Mosel Riesling 2015 750 ml $7.99

156: Dr Loosen Blue Slate Riesling 750ml $18.99

155: Dr Loosen Dr L Dry Riesling 750mL $22

• Brioche

150: La Fournee Doree Marble Choc Brioche 400g $6.99

141: Bon Appetite French Marble Brioche Chocolate 400g $4.49

• Yoghurt

189: Gippsland Organic Vanilla Yoghurt 700g $6.99

184: FiveAM Organic Vanilla Bean Yoghurt 700g $7

167: Just Organic Vanilla Bean Yogurt 1kg $5.49

• Chocolate

191: Moser Roth Dark 70% 125g $2.79

185: Lindt Dark 70% Chocolate Block 100g $4.25

158: Cadbury Old Gold 200g $5

* Scores collated from taste tests by five journalists and Aldi representatives at the chain’s headquarters on November 22

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