Australian grocery wholesaler Metcash and New Zealand’s leading retailer Foodstuffs join forces to create one of Australasia’s largest grocery alliances. The joint venture has a combined buying clout of $15 billion (US$11.1bn) and both partners will gain access to a broader range of lower priced products, especially private labels.
“We are delighted to be teaming up with the market leader in New Zealand and the initial benefits of our strategic alliance will be evidenced in the boost in our private label businesses”, Australian Associated Press quoted Metcash’ CEO Andrew Reitzer. Apart from the improved buying conditions the new partners are looking for, Metcash and Foodstuffs intend to share information, technology and training aspects of their operations while building their own businesses.