AUSTRALIAN consumer watchdog Choice has launched a new quarterly report on supermarket prices across the nation, finding dramatic differences between retailers on a typical basket of groceries and fresh foods, including beef.
The Government-funded report comes after a groundswell of criticism over retail supermarket pricing in Australia, leading to six separate inquiries and hearings on the topic conducted through government and regulatory agencies since last year.
Choice has received a $1 million Federal Government grant to finance the quarterly surveys for the next three years, Beef Central was told.
Choice sent undercover shoppers into 81 supermarkets nationwide – 27 Woolworths, 27 Coles, 23 Aldi and 4 IGA – in 27 locations during March this year.
Supermarket locations were chosen to give good coverage of socio-economic status based on ABS Indexes and geographic spread across the country. Sites were surveyed in ‘clusters’ so that each store had local competition. IGA was only used as a proxy, when there was no ALDI nearby.
The 14 grocery and fresh food items included in the basket included beef mince, apples, carrots, Weet-Bix, sliced white bread, flour, penne, white sugar, tea bags, tinned diced tomatoes, a block of tasty cheese, full-cream dairy milk, frozen peas and butter. All were either national brand or comparable supermarket brand/budget brand options.
The survey produced a 25pc advantage in the bill at ALDI – pitched as a ‘no frills’ retailer – over Woolworths and Coles. The Aldi bill came to $51.51, while Woolworths was $68.58 and Coles $69.33.
Household budgets across Australia are being squeezed tighter than ever before and the price of basic grocery items has skyrocketed, Choice said in its survey summary.
“Unsurprisingly, the latest Choice Consumer Pulse survey reflects this. We found the cost of food and groceries is a concern for a huge 87pc of households,” it said.
“The level of trust people have in supermarkets has also plummeted in the last 12 months, with 39pc reporting they don’t trust supermarkets to provide the best service and products to meet their needs.”
When Woolworths and Coles announced massive profits during a cost-of-living crisis in 2023, it prompted Choice to award the supermarket duopoly a (sarcastic) Shonky award.
It was against this backdrop of increasing distrust in big supermarkets and continuing concerns over the price of food and groceries, that Choice received funding from the Federal Government to run supermarket price research every quarter for the next three years, the watchdog said.
“Our regular examination of prices across the country will not only help hold supermarkets to account, but also help shoppers save money on their groceries.”
Choice declined to nominate which minced beef category (regular, lean, extra lean) was included in its survey, or the prices paid, but a spokesperson told Beef Central that the category selection was consistent across the three retailers. A short video accompanying the release of the first survey clearly shows a 500g pack of Woolworths Regular mince (82CL) being selected. Choice also said that future quarterly surveys may not necessarily choose the same red meat item as today’s inaugural survey.
Price comparisons
As a guide, Woolworths this morning was selling:
- Regular beef mince (82CL) for $6.50/500g ($13/kg, down from $14/kg)
- Lean beef mince (90CL) at $9/500g ($18/kg, down from $19/kg)
- Extra lean beef mince (95CL) at $10/500g ($20/kg, down from $21)
Major rival Coles was selling:
- Regular mince (83CL) for $6.50/500g ($13/kg)
- Lean mince (90CL) for $9/500g ($18/kg)
- Extra lean beef mince (95CL) $10/500g ($20/kg)
ALDI pricing this morning included:
- Jindurra Station 5 star lean mince $7/500g ($14/kg, normally $18)
- Jindurra Station 4 star Certified Grassfed HGP-free mince $8.49/500g ($17/kg)
- Jindurra Station 3 Star beef mince – TBC – (figures will be added here later once confirmed).
- Jindurra Station 2 star mince – TBC
However it was in steak cuts, rather than mince, where the big price difference between Aldi and Coles/Woolworths become most apparent.
ALDI Jindurra Station porterhouse currently sells for $22/kg, rump steak for $23/kg and scotch fillet for $27/kg. Woolworths this morning was offering porterhouse for $37.50/kg, rump for $32/kg and scotch fillet for $47/kg.
Comparing apples with apples?
But are the examples above really comparing ‘apples with apples?’
ALDI’s beef offer is divided into two tiers:
- Everyday beef offered under the Jindurra Station label, produced to the specs described below – the main seller through ALDI stores, and
- Specially Selected, a dedicated grainfed premium brand, covering mostly loin steak cuts and specialty items like Wagyu.
ALDI’s everyday Jindurra Station beef offer is obviously popular with its customers, winning last year’s Canstar’s Supermarket Meats “Most Satisfied consumer” awards for the mince, steak, sausages and burgers categories, with Coles topping the only remaining category, for roasts.
“Most Satisfied” is obviously a subjective term, but in this case clearly covers both price and quality (value for money).
So how does ALDI’s beef offer hold up against Coles/Woolworths?
Firstly, it should be remembered that ALDI pitches itself as a ‘No frills’ retailer. Price is a key feature.
The company for the past 16 years has sourced its beef offering from Northern NSW processor Bindaree Beef near Inverell, with product prepared in retail-ready form at Bindaree’s Gold Coast value-add facility.
ALDI specifies YP AusMeat cipher (up to four four tooth) steer or heifer, composite breeds, MSA graded, meat colour 3 or better. Cattle may have some grain assistance at different times of year, but are not specifically Grainfed.
In comparison, Woolworths and Coles accept only YG cipher (0-2 tooth) steer or heifer, grainfed at least 60-70 days, MSA graded, and identified (WW). Meat colour is limited to 2. Breed types are closely specified, with a drift (over time) away from higher indicus content. Coles product also carries a no HGP factor, which under MSA grading has additional positive impact on tenderness.
Simply put, Woolworths and Coles both offer a better standard of beef than Aldi, measured by any reasonable benchmark, but the point is, does the customer really care or notice, if the price is right?
Where both Coles and Woolworths have additional costs through their sophisticated red meat supply chains, Aldi uses a team of ‘just four or five’ to manage its beef supply, Beef Central was told.
“They don’t have 120 people in the beef division,” one keen observer told Beef Central.
“As good as the product is, the cost structures for the ‘red and green’ retailers are monstrous,” he said.
“In contrast, the Aldi model is made for Australia at the moment, because everybody’s hip pocket is looking for value. Unfortunately, if your supply chain is too complex, it’s really hard to put that back into the price paid by the consumer – unless you are discounting or loss-leading, simply to get customers through the door.”
My take on Unpacking the Grocery Basket: Beyond the Headlines
You have done a far better job than the ABC in trying to un muddle the smoke and mirrors from CHOICE Jon. Firsts let’s not forget this is meant to be about Woolies and Coles gouging customers and ripping off suppliers so the Government and the ABC are desperate for a headline and they made one.
Aldi 25% Cheaper”
The recent ABC and Choice investigation comparing grocery prices across major supermarkets sparked quite the debate. While their headline screamed “Aldi Cheaper!”—and yes, they were technically correct—there’s a lot more simmering beneath the surface. Let’s dive into the details that the average shopper might miss:
1. Aldi’s No-Brands Policy:
o Aldi’s shelves aren’t cluttered with flashy brands. They’re all about private-label products. So, if you’re craving a Coke or Colgate, you’ll need to swing by another store. Aldi’s cola and toothpaste are decent, but they’re not the big-name players.
o Brands come with hefty development and marketing costs. Aldi sidesteps that by collaborating with manufacturers to create “Brand X” versions of everyday items. Sure, it’s still pasta, but it’s not the same as the one at Woolies.
2. Where’s the Chicken? And the Coffee?:
o The shopping basket Choice used was a bit selective. No toilet paper, no personal care products, no coffee, and no chicken—the most popular protein and the most comparable. It’s like they skipped the essentials.
o And let’s talk about mince. Regular, lean, extra lean, 2-star, 3-star, 4-star, 5-star, minced chuck, topside mince, 70% lean… It’s a mince maze out there. How’s a regular shopper supposed to compare prices?
3. WA Freight Costs and the Great Price Debate:
o The ABC raised eyebrows about goods costing more in Tassie and the NT due to Aldi’s absence. But the chart they posted shows minimal differences between states (except WA). A dollar extra in WA? Not bad considering the freight hurdles.
o Coles and Woolies play price tag tug-of-war. Their pricing strategies are like synchronized swimming—every move watched, every promotion matched. It’s a dance of the giants. That’s how supermarket chains work all over the world.
4. Aldi’s Low-Cost Magic:
o Aldi’s secret sauce? A minimalist store setup, a limited product range, and no-frills service. It’s like the Marie Kondo of supermarkets—only the essentials spark joy.
o But hey, I still love the Aldi model. Yet, I can’t resist the sprawling aisles, the comfort, and the service at Woolies and Coles. It’s like choosing between a cozy cabin and a sleek hotel.
5. Supermarket Trust Issues:
o Trust in supermarkets has taken a nosedive. People doubt they’ll get the best service and products. But wait, have you seen the gazillion products at Woolies and Coles? It’s like a flavor explosion in every aisle.
6. Predictions and the Costco Elephant:
o My crystal ball says: Nothing will change dramatically. People will keep shopping where they shop. Aldi will keep growing until they’ve conquered their market slice.
o Oh, and let’s not forget Costco—the bulk-buy paradise. They didn’t even get a mention, but they’re lurking in the shadows.
In the end, grocery shopping is a personal journey. Whether you’re an Aldi aficionado, a Coles connoisseur, or a Woolies wanderer, choose your cart wisely. And remember, the real winner is the one who finds the last pack of toilet paper during a pandemic.
It is just a pity that over time more like for like supermarket chains like Tesco or Safeway didn’t force its way into the Aussie market as that would have made a real difference to the competition Why? Because they really are LIKE for LIKE. .
NB – Marie Kondo is a renowned tidying expert helping people around the world to transform their cluttered homes into spaces of serenity and inspiration.
Once again consumers a like sheep ( excuse the pun ) they just follow the flock especially when it comes to purchasing proteins. One stop shop at the Supermarket.
If more people just clearly took 15 mins out of their time and went to their local butcher it would put a lot more pressure on the desk jockeys working at the big Supers.
Please tell me the last time someone spoke to employee about meat cuts / best choice in a Supermarket.
Packaging is the big difference between the big 2 and Aldi
The big 2 have gone for what they call is recyclable paper based green packaging vs recycle plastic packaging used by Aldi.
Actually this paper based packaging comes from paper sourced from old age forests in Sweden, the paper is then transported to australia where it is converted into the paper based trays you see in Woolworths and Cole’s. These trays cost $0.46-$0.52 each (over $1.00 per kg) vs the $0.18-$0.25 for plastic recyclable trays
It is great to see the light being shone on retail prices including beef and on a regular basis. The Australian Beef Association (ABA) has been collecting beef prices in the supermarkets and to a lesser extent in independent retailers for a year now and offered to share their data with Choice. It is good to see that Choice have done independent research which corroborates the findings of the ABA. These findings can be found in the ABA submission to the ACCC Supermarkets Inquiry amongst other submissions from producer organizations and stakeholders. That submission can be found here
https://www.accc.gov.au/inquiries-and-consultations/supermarkets-inquiry-2024-25/issues-paper
One notable exception from the list of submissions is Cattle Australia who purport to represent grass fed producers but have failed to make any representation on this important issue. Why have CA failed to represent Australian Beef producers on this issue? Isn’t that the reason for their existence and a key pillar of their statement of values?
The ABA concur with the key findings of Choice having also found that the gap between ALDI and Colesworth’s beef prices are larger on steak items than on other items by in some cases over $10 per kg. My local butcher shop (who happens to be not far from the PMs Electoral Office) is also offering great value compared with Colesworth. T Bones 2kg for $38, Rump at $20.99, Scotch fillet $30.99 and New York Cut Porterhouse $24.99. These are $11, $7.01, $9.01 and $15.01 per kg cheaper than the “regular price” of these items in both Colesworth. This local butcher was NOT alone in his pricing with 3 other locals offering similar pricing. I purchased the T Bones and the family had a very good eating experience with them.
Last year, the ACTU identified that inflation was being driven more by corporate profiteering than by consumer behavior and commissioned Professor Allan Fells to head up and inquiry. The ABA also made a submission to this, and to the Senate Inquiry on “price gouging” by retailers.
With all the attention being paid now to retail beef prices and supermarket behaviour we might see some evidence of competition in the retail sector.
Surprised that the Aldi beef is MSA graded as my two purchases of striploin several months ago were inedible.
Great article
Good to see Aldi has MSA graded beef and taking advantage of hybrid vigour and optimising use of grass/ grain availability in supply chain.
Price check on Coles Extra lean beef mince (95CL) $12/500g ($20/kg) please 🙂
Thanks Greg – we’ll update the typo in the story…. editor