Big Fresh passes its use-by date

By Nick Smith

Friday 19th July 2002

The supermarket brand-chopping has started.

Foodland Associated, which bought the Woolworths supermarket chain for $690 million pending a legal challenge from rival Foodstuffs, will phase out its Big Fresh brand.

The nine Big Fresh stores will become either Countdown or Woolworths supermarkets.

The step by Foodland subsidiary Progressive Enterprises is the first step as it prepares to ditch one of its high-profile brands, Woolworths or Foodtown.

Progressive managing director Ted van Arkel said either one could go or the company could keep Foodtown in Auckland, where it has a heavy presence, and the more established Woolworths for the rest of the country.

"It's fair to say that having six brands out there is a nightmare," Mr van Arkel said. "We need to do some rationalisation and what we are starting with is a Big Fresh phase out."

Progressive is using research and focus groups run by Colmar Brunton and ACNielsen before it makes any decision on its premier supermarket brands, he said.

The first major test of consumer reaction to the merger comes next month with the first combined direct letterbox mailout to consumers, he said.

"It will be the first test of reaction from consumers [deciding] which brand is the preferred brand out there."

He said it was not simply a straight choice between the two brands, as it could make commercial sense to retain the Foodtown brand in Auckland.

Meanwhile, rival Foodstuffs is seeking a High Court judicial review of the way the Overseas Investment Commission handled its approval of the merger and a hearing is scheduled next month.

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