Coles suppliers told to pay for own freight costs to get products stocked
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Coles has told suppliers they must sign an agreement to pay for freight costs if they want their products to be stocked in the company’s new range, as the supermarket looks to increase its profits.

The company has detailed the plans in a brief sent to suppliers, seen by Guardian Australia, alerting them to a “major” range review, which Coles says will allow it to “implement meaningful new lines” of products to “excite and delight” customers.

Coles says “suppliers will be required to sign a freight recovery agreement to participate in the new range”.

If products are to be delivered into Coles’ national distribution centres, the supplier will be charged the cost of transport to its regional distribution centres.

A spokesperson for the supermarket said the cost of delivering products to its distribution centres had “always been borne by the supplier”.

The Coles spokesperson said the supermarket “does not profit from freight recovery” and the process “benefits suppliers” by “providing a more cost-effective and environmentally friendly way of delivering their product”.

They said “only slow-moving, ambient products” were stored in the national distribution centres. The examples they gave were boot polish, hair and beauty products and “international products”.

They would not disclose how much suppliers were charged, saying only that freight rates were “calculated weekly as goods are dispatched” and reviewed annually.

The Greens treasury spokesperson, Senator Nick McKim, said charging suppliers freight costs was a “blatant abuse of power” that he said would “hit smaller suppliers hardest”.

“This is a textbook example of how the obscenely profitable supermarket duopoly exploits its dominance,” McKim said. “They shift costs on to suppliers and protect their own profits”.

Guardian Australia asked Woolworths if it charged suppliers freight costs, but the supermarket declined to comment.

Last week, New South Wales honey packer Tori Rutherford spoke out about Coles after the supermarket told her it would delete one of her products – the Adleys Honey 400g squeeze bottle – as part of its cull.



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Coles suppliers told to pay for own freight costs to get products stocked
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**Exclusive:** Coles says plan ‘benefits suppliers’ but senator Nick McKim calls move ‘blatant abuse of power’ that will ‘hit smaller suppliers hardest’



Thu 6 Mar 2025 09.00 EST

Last modified on Thu 6 Mar 2025 09.02 EST

Coles suppliers told to pay for own freight costs to get products stocked
===========================================================================

Coles has told suppliers they must sign an agreement to pay for freight costs if they want their products to be stocked in the company’s new range, as the supermarket looks to increase its profits.

The company has detailed the plans in a brief sent to suppliers, seen by Guardian Australia, alerting them to a “major” range review, which Coles says will allow it to “implement meaningful new lines” of products to “excite and delight” customers.

Coles says “suppliers will be required to sign a freight recovery agreement to participate in the new range”.

If products are to be delivered into Coles’ national distribution centres, the supplier will be charged the cost of transport to its regional distribution centres.

A spokesperson for the supermarket said the cost of delivering products to its distribution centres had “always been borne by the supplier”.

The Coles spokesperson said the supermarket “does not profit from freight recovery” and the process “benefits suppliers” by “providing a more cost-effective and environmentally friendly way of delivering their product”.

They said “only slow-moving, ambient products” were stored in the national distribution centres. The examples they gave were boot polish, hair and beauty products and “international products”.

They would not disclose how much suppliers were charged, saying only that freight rates were “calculated weekly as goods are dispatched” and reviewed annually.

The Greens treasury spokesperson, Senator Nick McKim, said charging suppliers freight costs was a “blatant abuse of power” that he said would “hit smaller suppliers hardest”.

“This is a textbook example of how the obscenely profitable supermarket duopoly exploits its dominance,” McKim said. “They shift costs on to suppliers and protect their own profits”.

Guardian Australia asked Woolworths if it charged suppliers freight costs, but the supermarket declined to comment.

Last week, New South Wales honey packer Tori Rutherford spoke out about Coles after the supermarket told her it would delete one of her products – the Adleys Honey 400g squeeze bottle – as part of its cull.



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Coles suppliers told to pay for own freight costs to get products stocked
===========================================================================

Coles has told suppliers they must sign an agreement to pay for freight costs if they want their products to be stocked in the company’s new range, as the supermarket looks to increase its profits.

The company has detailed the plans in a brief sent to suppliers, seen by Guardian Australia, alerting them to a “major” range review, which Coles says will allow it to “implement meaningful new lines” of products to “excite and delight” customers.

Coles says “suppliers will be required to sign a freight recovery agreement to participate in the new range”.

If products are to be delivered into Coles’ national distribution centres, the supplier will be charged the cost of transport to its regional distribution centres.

A spokesperson for the supermarket said the cost of delivering products to its distribution centres had “always been borne by the supplier”.

The Coles spokesperson said the supermarket “does not profit from freight recovery” and the process “benefits suppliers” by “providing a more cost-effective and environmentally friendly way of delivering their product”.

They said “only slow-moving, ambient products” were stored in the national distribution centres. The examples they gave were boot polish, hair and beauty products and “international products”.

They would not disclose how much suppliers were charged, saying only that freight rates were “calculated weekly as goods are dispatched” and reviewed annually.

The Greens treasury spokesperson, Senator Nick McKim, said charging suppliers freight costs was a “blatant abuse of power” that he said would “hit smaller suppliers hardest”.

“This is a textbook example of how the obscenely profitable supermarket duopoly exploits its dominance,” McKim said. “They shift costs on to suppliers and protect their own profits”.

Guardian Australia asked Woolworths if it charged suppliers freight costs, but the supermarket declined to comment.

Last week, New South Wales honey packer Tori Rutherford spoke out about Coles after the supermarket told her it would delete one of her products – the Adleys Honey 400g squeeze bottle – as part of its cull.



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