‘They’re not small amounts’: Coles fielding five-fold price rise requests

The staple supermarket is being inundated with requests for price rises from suppliers who have long felt hard-done by the retail giant.

Coles is fielding five times the number of price increase requests from its suppliers than it was a year ago.

And the retailer’s chief executive Steven Cain, speaking at the Global Food Forum in Melbourne yesterday, said the amount being asked for was substantial, reflecting the pressure suppliers were under to break even amid record inflationary pressures.

“As I sit here today we have five times as many requests for price increases than we had last year,” Mr Cain said. “They’re not small amounts, not two-to-three per cent being asked for either.”

Coles chief executive Steve Cain. Picture: Arsineh Houspian

Mr Cain did not say how much the retailer was willing to move on price.

Managing director of corporate adviser Kidder Williams, David Williams, urged farmers to ask for 10 per cent or more, rather than accepting a number of smaller increases.

“If you need 10 per cent, get it all at once. The retailers need to have an equitable approach to price rise requests from suppliers who are doing it very tough,” Mr Williams said.

Perfection Fresh chief executive Michael Simonetta said his family’s fruit and vegetable company had been attempting to raise their prices for almost four months, but with little success.

“It’s a struggle that we’ve been finding very difficult. We’ve been enduring these conversations now for three to four months. In all cases customers are talking the talk but not walking the walk,” Mr Simonetta said.