How Australians have been cutting their grocery bills in 2021

Savvy Aussie shoppers are saving big bucks at the supermarket checkout on their groceries with this surprisingly easy swap.

In an effort to stick to tighter household budgets, frugal Aussie shoppers have been making big savings by swapping their favourite branded products for equivalent supermarket own brand items.

And it’s a simple switch experts say could slash grocery bills by nearly half.

“In our most recent grocery price survey we compared a basket of leading brand products with equivalent baskets of supermarket brand products and found that the equivalent Coles or Woolworths brand basket was 40 per cent cheaper,” says Rachel Clemons, senior food journalist at consumer advocacy group Choice.

Making this simple swap is a cost-cutting hack loved by many of our readers, too. Respondents to news.com.au’s latest Cost of Living survey said swapping to own brand has helped them cut down on unnecessary spending and adapt to changes in their financial situation as a result of the pandemic.

Over 10,000 people took part in the survey, sharing the household money challenges they were facing. The results are now in and news.com.au has kicked off The Money Project, revealing the financial tests Australians are facing and offering practical advice on how to get your money shipshape in 2021.

When asked about shopping habits, price, convenience and quality were most important when it came to doing the weekly shop with 64 per cent of respondents saying that price was their biggest priority.

Many respondents said they’d actively changed their shopping habits in the last year by looking out for mark downs and deals, cooking from scratch, choosing own brand products and even growing some of their own produce.

According to Brad Cook, general manager for own brand at Coles, customers’ interest in own brand has grown significantly in the last year.

“In the first half of this financial year we saw own brand revenue grow 10 per cent, compared with the total business which grew at just over 8 per cent,” he said.

“We’re seeing more and more own brand in more baskets compared with pre-COVID, so there’s a breadth of appeal.”

With household bills knocking rent and mortgages off the number one ‘money worry’ spot for Aussies who took part in our Cost of Living survey, choosing cheaper groceries could be key to bolstering household budgets.

Are supermarket own brand products any good?

If you’re still not convinced about trying out own brand, Ms Clemons says that although the ‘look and feel’ of these items may not be directly comparable to that of leading brands, that shouldn’t put shoppers off.

“Choice test results show that supermarket own brand products can taste and perform as well as, and sometimes better than equivalent national brand products, so lower prices don’t necessarily mean lower quality,” she says.

“Supermarkets have lower or no advertising or brand building costs for own brand products, and have the benefit of procuring in bulk, so these factors – among others – mean they can charge less for their own products and still have a sizeable profit margin.”

Meanwhile, Mr Cook says that Coles invests heavily in continually improving the quality of its own brand items, “We have a team of development chefs, product developers and nutritionists who source the best ingredients and work with some of the most renowned local suppliers to create products that customers are proud to have in their homes,” he says.

“We’re also committed to lowering the cost of living through our own brand products, including products that our customers buy most like our award-winning Coles spaghetti, which we reduced in price by more than 15 per cent in January.”

With household bills knocking rent and mortgages off the number one money worry spot for Aussies, choosing cheaper groceries could be key to bolstering household budgets.

The cheapest supermarket

Although she says savings can be had by simply switching to supermarket brand items, Ms Clemons adds that according to Choice research, some supermarkets are simply cheaper than others across the board.

Based on a shopping list of 33 everyday essential items, the food expert says Aldi came out on top.

“At $102.50, the Aldi brand basket was cheapest,” she says. “The basket of supermarket brand groceries cost on average $112.89 at Woolworths and $113.10 at Coles (excluding specials) – both approximately 10 per cent more than at Aldi.”

According to research from Aldi, its presence in Australia has had a competitive effect that has reduced prices for Australian shoppers, even if they don’t shop there.

As well as saving Australian customers a total of $6.6 billion over its 20 years in operation, Aldi also says it has influenced an increase in consumption of own brand products to the tune of $29.34 billion in savings.

“With household budgets coming under greater pressure in 2021, our promise to provide everyday low prices has never been more important to us,” says Adrian Christie, ALDI’s director of customer interactions.

“By doing things differently to other supermarkets, we can pass savings onto Australians without ever compromising on the quality of our products. Our research shows Australians save $2.4 billion per year when they shop at ALDI compared to other major supermarkets. We work closely with our partners to ensure our exclusive brands are just as good, even better, than market leading competitors.”

The best supermarket own brand items to buy

If you’re new to shopping for own brand items, or would like to expand your collection, Ms Clemons has the following advice on the best home brands swaps.

Pasta: Coles Organic Wholemeal Spaghetti scored 100 per cent in Choice’s pasta test.

Ice cream: Aldi Monarc Indulge Vanilla Opulence and Woolworths Vanilla Bean came equal top in our taste test with Connoisseur Classic Vanilla, but are less than half the price.

Strawberry jam: Aldi Grandessa Signature Strawberry Premium Jam and Woolworths Essentials Strawberry Jam scored only 1 per cent less than the top tasting Beerenberg Australian Strawberry Jam, but are one-third and one-fifth of the price respectively.

Stain removers: Aldi and Coles stain removers performed better than leading national brands Vanish and Sard in our recent test and are significantly cheaper.

Laundry detergents: Aldi Trimat Advanced Concentrate Laundry Liquid Front scores similarly to leading brand Dynamo’s products, but is less than half the price.

“My overarching tip would be not to assume that paying more will get you a better product, be prepared to shop around and avoid being overly influenced by brand and marketing,” she says. “When it comes to specific categories, there are quite a few where you can easily save without scrimping on quality.”

Woolworths are yet to respond to a request for comment.