Coles meat prices on the block in store price wars

FAMILIES are set to save hundreds of dollars a year on meat bills in the latest supermarket price war.

MEAT PRICE CUTS

FAMILIES are set to save hundreds of dollars a year on meat bills in the latest supermarket price war.

Coles has taken the butcher's knife to its own brand sausages, mince, steak and chops, slicing prices by as much as $7 a kilo at its stores nationwide from today, The Advertiser reported.

The grocery giant, battling with Woolworths for market share, describes the discounts as the biggest since the milk price wars triggered in January.

Rivals are expected to react to the markdowns, which trim the cost of favourite cuts like mince, thin BBQ sausages, lamb and pork chops, and casserole and rump steak by 11per cent to 28per cent.

Coles merchandise director John Durkan insisted the chain would absorb the cost of price cuts to protect suppliers.

"Like our customers, we care about Australian farmers and are committed to working with them to bring our customers the very best Australian meat and produce," he said.

Coles has come under sustained attack from dairy farmers who are worried the price stoush that slashed house brand milk to $1 a litre will devastate the industry.

Coles is also beefing up its "no added hormones" meat marketing despite previous Australian Cattle Council claims that consumers were being needlessly frightened.

Mr Durkan said Coles had lowered more than 6000 private label and branded prices since its Down Down campaign was launched last year.

The company has repeatedly rejected claims it is squeezing farmers or financing cheaper staples through higher petrol or other grocery prices.

Coles spokesman Jon Church said the latest cuts could save families hundreds of dollars.

"It's the biggest Down Down we've done, certainly since milk. The mince saving alone if you buy half a kilo a week is almost $50 per year," he said.

Retail analysts say reductions on key items is used to attract traffic into stores and boost overall spending. Some consumer advocates fear that supermarket brand discounts will lead in the long run to less choice and price competition, and more market dominance by Coles and Woolworths.