Coles is competing with Woolworths in a new market war over weight loss products

GROCERY giants Coles and Woolworths are muscling in on the growing weight loss market with new food labels and low kilojoule products.

Coles v Woolies

GROCERY giants Coles and Woolworths are muscling in on the growing weight loss market.

Coles is releasing a Simply Less "health conscious'' food label - ranging from diet shakes to chocolate - as it tries to win over shoppers trimming waistlines and budgets and expands its private label empire.

And Woolies has teamed with Treasury Wine Estates to boost promotion of lower alcohol and kilojoule Lindemans, Yellowglen and Matua brands in 350 Woolworths Liquor stores nationwide.

Coles marketing group director Simon McDowell said lower-calorie Simply Less options would be at least 15 per cent cheaper on average than the regular price for a leading national brand equivalent.

"Our research indicated that Australians are looking for a healthier and tastier option for less," Mr McDowell said.

Arch rival Woolies hit back, saying it had already reformulated many private label goods.

IBISWorld estimates Aussies fighting flab spend about $300 million a year on food, drinks and dietary supplements. This is tipped to grow by 3-5 per cent in coming years.

Dietitians Association of Australia spokeswoman Melanie McGrice advised consumers to check nutrition labels for saturated fat, salt and fibre content as well as kilojoules when comparing products.

Coles research across 20,000 mainly female customers found seven in 10 had tried to shed kilos in the last year, and more than half were discouraged from choosing healthier due to higher prices.

Meal supplements, health bars, frozen meals, multigrain breakfast cereal and salad dressings are among the dozens of products developed for Simply Less.

Even chocolate, potato snacks and chilled desserts will be billed as healthier alternatives. The full collection of 94 products should be stocked by next Wednesday.

Woolies claims a number of its own items, including some snack bars and salad dressings, are nutritionally superior to Simply Less.

"We are commited to reducing saturated fat, sodium (salt) and sugar levels in all of our own brand products, regardless of the name on pack," spokeswoman Kristen Young said.

Meanwhile, Woolies has fired the latest shot in the supermarket price wars by cutting the cost of Huggies bulk jumbo box nappies, Quilton 24-pack toilet paper, Fab 1kg laundry powder, beef sausages, and corned beef silverside for the rest of the year.

COLES SIMPLY LESS v BRANDED

• Multigrain flakes (375g) $3.99 v Kellogg’s Guardian  (360gm) $5.49 
• Meal replacement shake (56g) $2.99 v Biggest Loser (55gm) $3.40
• Rich chocolate ice cream (2lt) $5.75 v Nestle Peters Light and Creamy (1.8lt) $6.79
• Thai green curry (chicken&veg 380g) $4.99 v Lean Cuisine Balance (280g) $5.69
• Tatziki dip (200gm) $2.30 v Black Swan 200g $3.45
• Greek style yoghurt (500g) $3 v Farmers Union (500gm)$3.99
  

Source: Coles. Based on regular shelf price.