Coke loses its fizz in battle of the margins with Woolies

 In Australia, NewZealand, Woolworths

Coca-Cola Amatil is showing the bruises inflicted by supermarket muscle.


If Coke doesn’t have the brand power to stare down Australia’s largest retailer, Woolworths, who does?


That is the question being asked across Australia’s retail sector after Coca-Cola Amatil (CCL) released its full-year results, offering a clearer picture of its costly battle with Woolworths over profit margins in supermarket aisles.


For Woolworths the challenge is how to protect its profit margins – probably the best for any supermarket operator in the world, according to the Morningstar analyst Peter Warnes – in the face of food price deflation and the heavy discounting of food and alcohol that marred its December half-year. Sydney Morning Herald – Read more…
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