Healtheries To Supply Coles In Australia

News release
18 April 2001

Healtheries To Supply Coles In Australia

New Zealand supplements and health food manufacturer Healtheries, today announced a supply agreement with Australian supermarket chain Coles.

From 1 June, 2001 Coles, a division of Australia’s largest retailing group Coles Myer Ltd, will stock Healtheries core range of food, teas and supplements in its 410 stores nationwide. This will be the first time Healtheries has been available in grocery in Australia.

Healtheries managing director, Sarah Kennedy, says the deal is an exciting move for the company, as it will give Healtheries much wider consumer reach in Australia.

“Our products have been available there for the last 10 years, but only in health food stores. We had enjoyed good growth in that channel until July last year when GST was introduced. Sales slowed significantly from that point. This really was the key catalyst to exploring other distribution channels,” says Ms Kennedy.

Australia’s total health retail market is worth AUD$370 million. The health food and grocery channels contribute about AUD$120 million apiece, with pharmacy estimated at AUD$240million.

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However, Ms Kennedy believes that the grocery market in Australia is yet to be fully realised.

“If the New Zealand grocery market is worth NZ$40 million, and Australia is six times our size, there is definitely potential for expansion.

“Australian’s, like New Zealanders, can see the benefits of maintaining optimal health so they want supplements and other health products and, increasingly, they want to buy them from convenient locations.

“Healtheries has a strength grocery, so we believe we can assist Coles in captialising on this potential while meeting consumers’ needs,” she says.

Among the brands Healtheries will compete against in grocery is Australia’s heritage brand and market leader, Blackmore’s. Here, Healtheries holds a 60% share of the New Zealand supplements market and is rated the number one personal care supermarket brand.

“Our research shows that the highest consumer brand awareness is among brands available through a variety of retail outlets. So for Healtheries to make an impact in Australia, we need to be in grocery as well as in the more specialist channels such as health food and pharmacy, says Ms Kennedy.

Healtheries of New Zealand regained ownership of its brand in Australia 18 months ago, enabling it to control and align its activities there with the company’s core strategy.

Healtheries now has three distribution channels in Australia - grocery, health food and selected pharmacies.

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While grocery will offer consumers Healtheries core ranges, health food and pharmacy stores will exclusively sell Healtheries
brand specialist ranges. The company also plans to introduce at least one new specialist brand to Australia this year.

Healtheries, has annual sales of more than $45 million. The new Australia distribution deal with Coles is expected to add over 10 per cent to annual turnover.

About Healtheries
Healtheries began as a specialty flour-miller in 1904. Nearly a hundred years later, it has expanded its portfolio to include a wide variety (750) of innovative products targeting health and well being.

From supplements and herbal beverages, to rice wafers and natural foods, Healtheries is acknowledged as the top personal care brand in grocery in New Zealand. The excellence of its products is also recognised internationally with exports going to the UK, Europe, Asia, Australia and the Pacific.

True to its heritage, Healtheries remains New Zealand owned and operated. It employs more than 250 people in Australasia.

About Coles
Coles can trace its origins in the beginnings of Australia’s retail industry when over 84 years ago founder George Coles opened the first Coles Variety store in Melbourne.

In 1960 Coles opened its first supermarket in Victoria and by 1973 had achieved its goal of establishing a supermarket in every Australian capital city.

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Today Coles is a leader in Australian food retailing, employing more than 52,000 staff and serving over 4.5 million customers every week. Coles is part of Coles Myer Limited – Australia’s largest retailing group and one of the top 25 retailers in the world.

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For further information, please contact:
Sarah Kennedy Penelope Barr
Managing Director
Healtheries of New Zealand Ltd WRC
Tel: + 64 573 3730 Tel: +64 9 306 1801
Fax: + 64 573 3731 Fax: + 64 9 302 7169
Mob: 021 965 440 Mob: 025 835 383
Email: sarahk@healtheries.co.nz Email: peneb@beyondpr.co.nz

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