Global Food Forum: Coles responding to ‘at home’ lifestyle

Coles chief Steven Cain tells The Global Food Forum consumers were demanding more up-market food products for at home lifestyle.

Coles chief executive Steven Cain has said his shoppers believed there is “almost something for everyone” in the federal government’s Budget handed down earlier this month, although in terms of consumer behaviour shopping in safe and clean stores in the health crisis was becoming as important as prices on the shelf.

Talking on Wednesday morning at The Australian’s Global Food Forum Mr Cain said home cooking was also growing strongly as consumers were locked in at home and social distancing with consumers treating themselves with more up-market products such as champagne and specialty cheese.

This is an online dinkus for the global food forum

Mr Cain said there was widespread belief among his customers and businesses that the more than $200 billion in stimulus spending unveiled by the government in the Budget would be beneficial to the economy and widely spread.

“I think most people would look at the Budget and say there was almost something for everyone, it is certainly going to help the economy, it is certainly going to help most businesses. That’s got to be good news,” Mr Cain told the Global Food Forum.

Price remained important to shoppers, but so too was shopping in hygienically clean stores in the wake of COVID-19.

The Australian's John Durie interviews Steven Cain

“I think when you look at customers though they are all in different spaces, we saw customer research recently which showed that large number of customers now who are very concerned about safety and hygiene, that was never the case a few years ago, that would never come up on that.

“Prices are still important but so is shopping in safe environments, and that is what we are trying to do.”

In terms of shopping trends emerging through the COVID-19 pandemic, Mr Cain said many shoppers were buying more premium groceries as they ‘treated themselves’.

“People are treating themselves during this COVID crisis, we are seeing a lot of treat types of stuff whether its champagne, whether its cheeses, flowers, all of those things are going very well.

“So whilst people, can’t be eating out and whilst people can’t travel or go abroad they are looking after themselves at home.’’

The Coles range of household and personal cleaning products were also selling strongly through the pandemic.

“We changed from being a supermarket to being an essential needs business, and I think a lot of people, our stakeholders, have changed their view on what a supermarket is and what it does.

“And certainly what we are seeing with our own hygiene products is at the moment they are up about 30 per cent, people are just using obviously masks more, they are using sanitiser more, toilet roll sales are still up. There is a lot more happening at home and people are being much more hygienic than they were, so some will depend on consumer expectations, some will depend on government regulations and so on but most of all we want a secure and safe environment for our team members and customers.’’

Mr Cain said cooking at home was also becoming more popular, as shoppers didn’t totally rely on takeaways and UberEats.

“When you look at our cooking ingredients sales at the moment they are up around more than 20 per cent so it has really brought the family together again and it is got everyone cooking, and we think that is a great long term trend for supermarkets but also the food industry.

“Because you do want your convenience and your UberEats, and take out meals, but it is great to have life skills where you can cook.’’

Mr Cain said at the moment it has a business that exports $500m worth of meat a year, mostly offcuts not popular in Australia, and that it could expand to other food products such as wine in the near term.

“We are looking at other categories as well, next focus area is wine … the main focus initially is meat.’’