Coles raises price of generic brand milk, eyes on Woolworths, Aldi

Coles has raised the price of its generic brand milk, the first price hike in more than a year. Will the other major retailers follow suit?

Dairy farmers have welcomed Coles raising the price of its generic brand milk by 10 cents, with rival retailers not ruling out similar moves.

Coles quietly raised the price of its own brand cartons last week, with one-litre bottles rising in price from $1.60 to $1.70, two litres from $3.10 to $3.30 and three-litre bottles from $4.50 to $4.80.

A Coles spokeswoman said the supermarket had “reluctantly raised the price” due to ongoing cost increases in the supply chain.

“We don’t take the decision to raise prices lightly, particularly because of the increased cost-of-living pressures faced by our customers,” the spokeswoman said.

Australia’s big three supermarkets last raised the price of their generic milk offerings by 25 cents in July 2022, sparking much consumer-focused comment in the national media.

EastAUSmilk president Matt Trace said the latest price rise was modest compared to price rises with other consumer goods this year.

He said $2 or more per litre would better reflect the increased cost of milk production.

“In the scheme of things, $1.70 for a litre of milk is still very cheap,” Mr Trace said.

“There’s plenty of brands of bottled water on the market selling for a lot more than that.

“This price rise just reflects the market forces that were being ignored in the dollar-a-litre years. The price was kept artificially low for a long time, so there’s still room for pricing catch up.”

Coles are increasing the price of their generic brand milk to $1.70.

Both Woolworths and Aldi kept their options for raising the price of their generic milk open when contacted by The Weekly Times.

When Coles moved to $1.60 a litre last year, both grocery giants swiftly followed suit.

“We will continue to review our pricing, taking into account a range of factors,” a Woolworths spokeswoman said.

An Aldi spokeswoman said: “We remain absolutely committed to delivering the best value for our customers while also supporting our supplier partners by maintaining fair pricing.

“We remain focused on reviewing pricing for the whole dairy category on an ongoing basis.”