Former Coca-Cola Amatil Australasia chief Warwick White has been appointed as the inaugural chief executive officer of independent grocery firm Stone Advisory.
The appointment comes as Australia’s largest grocery network based on store numbers – Independent Grocers of Australia (IGA) and other independent grocery retailers – have outlined plans to challenge the big two in the $102 billion grocery sector.
White previously ran Coca-Cola Amatil in Australasia for 12 years and also chaired the Australian Food and Beverage Council for three years. Recently he was at the helm of international operations of global coffee business Keurig.
He will join the representative group established by IGA and Foodland retailers to work with wholesale parent Metcash’s network of suppliers.
“The grocery environment in Australia and globally is undergoing significant and exciting change, driven by new entrants and new technologies and that is driving increased competition,” he said.
“The retailers that make up the IGA family and other independents are well placed to accelerate change. I look forward to helping energise the independent grocery network.”
According to IBISWorld data, the grocery industry is expected to grow by 2.2 per cent in 2017-18, largely due to rising demand for premium food products, such as organic fruit and vegetables. This follows on from a 0.6 per cent decline in real terms in 2016-17, after a period of heavy discounting by the major supermarket chains. Coles’ market share is expected to reach 30.3 per cent at the end of 2017-18.
German grocery giant Aldi now has over 500 stores across Australia and its ongoing expansion is expected to earn the company 9.2 per cent of the supermarkets and grocery stores industry by the end of 2017-18.
Meanwhile Metcash’s network of stores, such as IGA, are continuing to suffer as Woolworths, Coles and Aldi compete strongly on price.
Metcash’s market share is expected to total 7.4 per cent by the end of 2017-18.
Woolies gained market share for the first time in several years in 2016-17. IBISWorld expects that the trend will continue, with the company projected to account for 37.2 per cent of the industry by the end of 2017- 18.
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