Curated, Edition 3, September 2023

Who Gives a Crap: Changing the world one roll at a time

In this issue

Hello

and welcome to the third edition of Curated!

Can you believe that Christmas is only 3 months away? I can’t either! With the holiday season fast approaching, this edition includes a few feature articles that will help you get prepared for the festive period and set you up for success during this busy time of year.

In this edition, we've also curated a collection of articles and stories that we believe you'll find both insightful and inspiring. We're excited to feature more stories from our incredible Trade Partners, Rich Glen Olive Oil and Who Gives a Crap. As you dive into the articles and stories in this edition, we hope you find them not only informative but also enjoyable.

We are always committed to improving and delivering content that matters to you. Scan the QR code in this magazine to share your feedback and let us know what you'd like to see in future editions. Your input is invaluable in shaping the content that serves you best.

Happy Reading!

Rebecca Boustead General Manager Supplier Engagement and Capability

Trade Partner Charter

We are always Customer 1st

We behave like business partners

We do what we say

We balance business sustainability & market competitiveness

We inspire and challenge each other to do better

We drive our business through the Merchandise Manager and Joint Business Plans

We make it right when we fall short

Paul's update

Customers are looking to make every dollar count

The Christmas trading period is approaching fast. Rising living costs and inflation are making customers look for ways to spend less on the items they need to ensure they can stay on top of those costs.

I wanted to share how Australians are shopping and, through these insights, help us make sure every family can still enjoy a wonderful Christmas.

Financial concern is high

Cost of living increases are putting a lot of pressure on household finances. In fact, 50% of Australians are worse off this year, with 25% only having enough for the basics. This means having to cut back on items they don’t need.

50%

50% of Australians are worse off financially versus last year

25% 25% of Australians only have enough for the basics

Food prices are a top cost of living concern

“I’m happy to have a house and roof over my head, but when half the salary goes to the mortgage, it’s pretty tight.”

Male, Brisbane

Total Out of Home (Retail Wallet) % $bn ch (Jan ’23 - Jul ‘23) vs LY

Market spend is changing

Because of these concerns, total market spend has started to contract. Discretionary and necessity spend are both declining. We’re seeing Australians make conscious trade-offs in their purchases.

Household large-item purchases such as white goods have declined significantly, petrol consumption is down as customers stay home more, and apparel purchases are in decline. Customers are still spending on some experiences, especially travel and accommodation, entertainment, and eating out. Although these too are showing early signs of some groups, such as young singles and couples, cutting back.

55%

55% of customers are more cautious with their spending

Larger purchases are being deprioritised vs. experiences & health 19% 19% of customers have made changes and are still struggling

“I’ve downloaded a half-price app on my mobile, and I’ve done the calculations and realised I’ve saved about $250 a month just by being a smarter buyer.”

Male, Melbourne, Saver

Larger purchases deprioritised vs. experiences and health

Our customers find value in different ways

In value stores, where more shoppers fall into our Saver & Saver Family segments, we are seeing less item growth, the highest value sales penetration, and the highest rate of Everyday Rewards cards being used.

Price remains the key driver for overall value, with customers willing to trade off convenience and experience. However, areas such as sustainability, health and range are still important.

Getting ahead of Christmas

33% of customers have already started planning for Christmas – up from 20% just two years ago. This shouldn’t come as a surprise, given the financial stress families are under. Customers are much more conscious about spending and will enjoy Christmas on a smaller budget.

“We’ll probably stay home this summer with the fuel prices up. Have the kids and grandkids come to see us, and we’ll shout them Christmas dinner as we always do. No big splurges. Just steady as she goes.”

EN, Male, NSW

Where to from here

1 Biscuits – Sweet

2 Biscuits – Savoury

3 Chips Sharing

4 Spices & Cooking Needs

5 Chocolate Blocks

Customers seeking out small treats

Customers told us that they’re cutting back on treats. However, when asked what small indulgences they’re buying, treats still frequently come up. In fact, they are often in the top five subcategories of purchases. This highlights an opportunity to create some affordable indulgences for our customers, particularly as we head into Christmas.

Our customers are feeling the financial pressure. As a result, customers are planning Christmas earlier than usual, and many will take a more cautious approach to holiday spending.

It is evident that this Christmas might be different for many Australians. As we navigate these financial concerns together, it’s essential that we recognise the changing concerns of our customers. Whilst households are tightening their belts and making conscious trade-offs, there’s still room for moments of indulgence and a desire to still celebrate. With a strong focus on affordability and availability, together we can continue to bring value to our customers and help them make the most of this holiday season.

2 in 3 Customers are already thinking about Christmas + Customers feel positive but stressed Choiceful Christmas spending is expected

Getting Ready for Christmas

Top tips for a smooth holiday season

Preparation and collaboration are key to helping us achieve a seamless and successful Christmas and Summer trading period. We have gathered valuable advice and tips from across our ecosystem to set you up for success.

Commercial

The Commercial team at Woolworths have diligently completed their planning for Christmas and Summer and are in the final stages of fine-tuning our December customer offer. It’s crucial that we lock in our plans to minimise any disruptions during the busy festive season. Here are some tips and actions to take:

Promotion Planning

When promotional planning for Christmas is completed, it is important that all Summer offers are reviewed and loaded to cover the the key summer selling period. Christmas promotions should be loaded as a two-week block from 13/12 to 26/12.

Accurate Forecasting

Work hand in hand with your Commercial and Demand Planning contacts to forecast accurately for the extended period. This summer is looking to be hotter than normal, so please ensure this is factored into your baseline and promotion forecasting.

Field Team Support

Ensure that your field teams are well-informed about planned promotions and activations and are ready to support in-store execution during the busy Christmas and Summer trading periods.

Communication

Keep your Commercial contacts informed and updated of any last-minute changes to minimise disruptions.

The busiest time of the year is fast approaching for the retail industry! At Woolworths, we ensure we delight and surprise our customers during the Christmas and Summer trading periods.

Primary Connect

Smooth deliveries and compliance with supply standards are crucial for a hassle-free festive season. The flow of goods into our Distribution Centres (DCs) is critical to prevent any costly delays or rejections. Here’s what you need to focus on:

Adhere to Delivery Windows

Remind your team and nominated transport carriers that all deliveries into our Primary Connect DCs must adhere to delivery windows, booking times and our Woolworths Group's Supply Standards.

Product Compliance

Ensure you maintain compliance with product specifications, in particular pallet quality, plastic wrapping, label/barcode quality and carton integrity.

Top tips from DC Receiving

Have a Pre-Despatch Checklist in place:

1. Monitor your performance daily and login to SCoRe/PartnerHub regularly

2. Have a cleaning and maintenance program for your label printers

3. Educate and engage your teams on expected Woolworths Group Supply Standard requirements

4. Ask for assistance or clarification when needed

Top Tips from Primary Connect+

Open communications channels: We are better when we work together. By keeping communications channels open, it will help us deliver successful Christmas and Summer trading periods. For any urgent queries, you can call 1800 PRIMARY. Due to the high volume of email traffic, calling us will assist in resolving your query in a more timely manner.

Holiday hours: If you plan to close or adjust your operating hours throughout the peak trading period, ensure you discuss with your Woolworths Replenishment Supply Planner.

Pallet management: Manage pallets efficiently by re-entering them into the pool as soon as possible to optimise operations. Monitor global freight: International freight is experiencing challenges affecting all of the supply chain, if there are opportunities to bring freight forward we may be able to support you with additional storage.

Replenishment

Another crucial aspect of Christmas and Summer trading period preparation is replenishment. Ensure the following steps are taken care of:

Warehouse and Network Focus

Transport volume planning: To handle the surge in demand during the festive period, align transport volume plans with the carrier by transport lane to ensure they can meet additional volumes required.

Weekend delivery plan: Align with carriers on a weekend delivery plan for relevant DCs to help optimise delivery schedules and ensure products reach stores efficiently.

Communication with the Replenishment team: Maintain open communications channels with your Replenishment contact on any changes required for transport over peak periods. This may include adjustments to delivery windows or permanent timeslots.

Warehouse or transport closures: Do stay in sync with the Replenishment team on planned warehouse or transport closures you have during the Christmas and Summer trading periods.

Supply Focus

Early engagement with the Demand Planning team: Start the planning process early. Aligning volumes ensures that there is appropriate production capacity and safety stock of raw materials and finished goods to support the Christmas and Summer trading periods.

Long-range planning: Anticipate potential logistics challenges by implementing contingency and resilience plans in suppliers' supply chains. Unforeseen events like unexpected rail outages can disrupt the supply chain, so having plans in place is crucial.

Weather considerations: This summer season is expected to be unusually hot and can create instability in the plans, particularly for hot weather-sensitive product lines.

Focus on value and seasonal lines: As these are often the most sought after products during the holiday period, we appreciate your support to focus and prioritise on delivering core value lines and identified seasonal SKU's to support the store demand.

Align on promotional and NPD plans: Align well in advance with the replenishment team on Christmas and Summer promotional plans. Additionally, plan for any NPD launches, especially for launches straight after the Christmas rush in January.

Leave coverage and operation hours: Ensure there is an appropriate leave coverage plan in place, especially during any office closures over the holiday season. It’s essential to communicate this to relevant teams to avoid any operational gaps. Do keep the Replenishment team informed about any changes to operating hours. This information helps in coordinating logistics effectively.

We hope you find these tips useful as you head into the Christmas and Summer trading periods! Planning ahead, staying compliant, and maintaining open communications are key to making this festive period a smooth and successful one!

Questions or queries?

Commercial team: Your respective Category Manager

Primary Connect team: supplychainpartners@woolworths.com.au

Please see our Woolworths Group Supply Standards Knowledge Article on Partner Hub containing access to the Standards and supporting training videos and documents.

Replenishment team: Your respective Supply Manager

Changing the world one roll at a time

Inthe world of conscious consumerism, the Australian brand Who Gives a Crap is an inspiring example of how a product as everyday as toilet paper can make an impact on global issues. Founded by Jehan Ratnatunga, Simon Griffiths, and Danny Alexander, this brand not only provides ecofriendly toilet paper but also channels 50% of its profits towards the goal of ensuring clean water and proper sanitation for everyone worldwide.

Behind the cheeky brand name and clever marketing lies a deep commitment to addressing a critical global issue. We had the opportunity to speak to Jehan Ratnatunga, one of the co-founders, to learn more about their story.

Q: Can you tell us about the story behind Who Gives a Crap and what inspired the company’s unique name and its commitment to sustainability?

My co-founders Simon Griffiths, Danny Alexander and I started the company because we love toilet jokes and wanted to make a difference. When we learnt that over 2 billion people don’t have access to a proper toilet, we started to think about ways we could help raise money and awareness for this problem that impacts not millions, but billions. It’s a staggering statistic, because not having proper sanitation leads to nasty stuff contaminating drinking water,

widespread disease and tragic childhood mortality rates, leading to 289,000 children under five dying every year from diarrhoeal diseases.

We saw the opportunity to develop an ecofriendly product that we all use every single day to help bring an end to this issue and to engage people in a conversation about one of the most off-track development goals that we have in the world.

In July 2012, we launched the company with a crowdfunding campaign where Simon - our brave CEO - sat on a toilet on a livestream, pledging not to get off of it until we raised $50,000. I sat in the comfort of my own home, cheering him on. To date, Who Gives A Crap has been able to donate over $11.2M, and we’re just getting started!

Q: You donate 50% of your profits to ensure everyone has access to clean water and a toilet within our lifetime. Can you elaborate on some of these projects and initiatives?

Yes, at Who Gives A Crap, we believe that businesses can be part of the solution to the world’s problems. That’s why we donate 50% of our profits to our strategically chosen non-profit partners that do incredible work providing clean water and sanitation for the billions of people who still don’t have access to a toilet.

Our partners range from smaller organisations focused on specific communities, to large organisations like WaterAid Australia (Water Aid is one of the world’s largest sanitation NGOs).

The wipers who choose Who Gives A Crap have helped fund work across the world. Some specific examples of this impact include:

• A pilot program with WaterAid Australia to improve the sanitation standards in a rural hospital in Cambodia. It shows how a small investment in better sanitation training and equipment can lead to huge improvements in outcomes such as reduced cross-infection rates and shorter patient visit times. If the pilot is successful it can be deployed across several hospitals across the region, creating scalable, lasting impact.

• Creating a “Circular Economy’’ through support of our partner Fresh Life. They build and sell toilets at an affordable price, and safely collect the waste to create fertiliser and biofuel. It’s amazing work that helps prevent raw sewage entering waterways, reduces CO2 emissions AND empowers local business

owners to be loo entrepreneurs in their own communities.

• Beyond our 50% donations, we also help save trees from being cut down to produce virgin toilet paper. Over 1m trees are cut down every single day due to the virgin toilet paper industry. Since Who Gives A Crap is made from 100% recycled paper or bamboo (a grass), we’re helping to reduce deforestation.

Q: Packaging waste is a concern for environmentally conscious consumers. How does Who Gives a Crap address this?

This is something we care deeply about and we are always looking at ways we can improve. Early on, we decided to avoid using single-use plastic packaging for our products. Our packaging is 100% plastic-free, our rolls are made from 100% recycled or bamboo paper and the boxes are made using recycled fibre.

We often talk to customers about our individually wrapped rolls. Toilet paper is usually something that you would keep hidden away in your closet. However, we flipped that idea on its head and wanted our product to be front and centre in your bathroom. This is why we decided to wrap each roll with unique and fun designs. In addition, this approach ensures that each roll remains hygienic and moisture-free. And of course, all of our packaging can be easily recycled in curbside recycling or paper recycling systems.

Q: How did your partnership with Woolworths commence?

We’ve been in touch with Woolworths for a number of years and have always shared a similar vision to provide environmentally friendly options to consumers. Last year we decided the timing was right, and we’re proud to say that Who Gives A Crap is now available at Woolworths!

It’s a big moment for us and our impact. To solve a problem as big as sanitation, partnering with the likes of Woolworths, who reach so many people around Australia, is a huge milestone.

Q: What have been the rewards and challenges of collaborating with Woolworths?

By far, the biggest impact is the ability to share our purpose with the Woolworths customers, and reach people beyond our D2C model. Everyone that we’ve been collaborating with at Woolworths has shared this passion, and we love that this is the foundation of our partnership. Purely from an environmental perspective the rewards are huge: to date, we’ve saved over 1.4 million trees by offering more eco-friendly toilet paper options to consumers. This is just what we’ve been able to achieve on our own, and we’re excited for growing this impact with Woolworths.

The biggest challenge has been the learning curve of retail. Selling toilet paper online is very different to selling it in supermarkets. We’ve had to consider and understand Woolworths strategy, ways of working, their supply chain and customer - and then making sure we can adapt internally. It’s all a new, fun, but sometimes challenging adventure. Never a dull day in the world of toilet paper for sure!

Q: Looking ahead, what are your aspirations and goals for Who Gives a Crap? Any exciting initiatives or projects in the pipeline?

We’re still a quite small player in the giant toilet paper market - there’s lots more bums who don’t know us yet! So for us, it’s about getting the brand out there and reaching more people, which will deliver a greater impact in the long run.

Being on shelf with Woolworths is a big part of this. We’re excited to keep learning and having fun, staying true to our personality to catch people’s eyes in the toilet paper aisle and beyond. As sustainability is at the core of what we do, we’re focusing on renewable energy in the year ahead - besides our efforts to reduce deforestation. We’ve just convinced one of Australia’s biggest landlords to install solar panels on their warehouse, spelling out CRAP. Through projects like this, we’re looking to influence other businesses to do good and improve their sustainability efforts and to raise awareness about an essential but beautiful product like toilet paper.

Q: What have been some of the biggest lessons on your journey with Who Gives a Crap?

One of the biggest and seemingly simplest lessons I have learned is about our approach of tackling the serious issue of sanitation in a fun and positive way. Consumers are facing a lot of doom and gloom every day, and are therefore more receptive to positive and lighthearted coverage of more serious topics. Our bright approach has undoubtedly contributed to our impact and reach, as people are more willing to share positive messages. I’m also amazed by the fact that consumers are more and more conscious about where they spend their money and leverage their purchasing power to support brands that not only do good, but most importantly align with their values.

Who Gives A Crap is not only changing the way we think about toilet paper, but also inspiring us to be more mindful of the impact our everyday choices can have on the world. With a commitment to sustainability, creativity, and a dash of humour, this Australian brand is proving that even the most ordinary products can lead to extraordinary change.

Who Gives a Crap at the Woolworths Support Office where employees got to learn more about the brand and sample their products!

Cultivating Sustainability and Quality with Rich Glen Olive Oil

In the heart of Yarrawonga on the Murray River, lies the story of Rich Glen

Aremarkablejourney started in 1998 when the Vodusek family decided to plant 36,000 olive trees on their family property. The transition to olive trees was born out of the need for a more sustainable venture on what what was a previous cattle and sheep property.

With passion and determination, husband and wife Damien and Ros Vodusek embarked on their journey at Rich Glen. The first olives were harvested after three to four years and were all painstakingly hand-picked. By 2004, a processing plant was built on the property, making them fully self-sufficient.

However, they soon realised the farm was struggling due to the influx of imported oils into Australia, to the extent that they were on the brink of having to pull up the olive trees. Driven by Ros’s creative flair and culinary expertise, the Vodusek family pivoted and diversified from producing bulk oil to creating retail products.

“We love experimenting and creating various products from olive oil. However, in the past our cost of production was much higher than what we were getting in the retail market. That really pushed us to value-add,” Ros Vodusek shared.

Their journey has been nothing short of inspiring. Operating from a section of their family home with an honesty box system, they gradually built Rich Glen Olive Oil into a fullfledged tourist destination, where they turned their family home into a cafe which saw over 90,000 visitors in 2019 alone! They also developed 180 products ranging from olive oils and dressing to cosmetics to olive leaf tea.

Then came the unexpected turn of events in 2020 – the COVID-19 pandemic.

While devastating for many businesses, it proved to be a blessing in disguise for Rich Glen Olive Oil. Forced to shut their cafe, they took the opportunity to re-evaluate their business strategy, focusing on branding and tapping into the potential of online sales.

Ros's son Jack Vodusek, who also plays an integral part in the family business recalled, “We had all these products that people loved, but they were sort of lost in the background while we were busy when the cafe was around. The lockdown gave us time to focus on branding and creating a digital presence.”

With renewed energy and a commitment to sustainability,

RIch Glen Olive Oil has also taken great strides in becoming a fully integrated and environmentally conscious operation.

From harvesting to processing, they utilize every part of the olive, ensuring nothing goes to waste. They compost olive waste, using it to enrich their orchard, and employ drip irrigation to maximise water efficiency.” We’re always looking to further back our sustainability efforts. It’s not just a claim we make as a business; consumers these days genuinely care about it, and so do we!” Daimian Vodusek emphasised.

Initially hesitant about entering the massmarket arena, they joined forces with Woolworths and now offer 10 of their bestselling products in over 200 stores.

“Partnering with Woolworths was a great opportunity for us to learn and scale our business further.” Jack Vodusek added.

The Vodusek family has carved a niche in their industry while showcasing the remarkable potential of olives. Embodying resilience and a profound connection to the land, Rich Glen Olive Oil stands as a testament to the passion and dedication of a family determined to preserve the beauty of their land for generations to come.

Their partnership with Woolworths has been a great learning curve for the family-run business.

“Partnering with Woolworths was a great opportunity for us to learn and scale our business further.”

Primary Connect+ launches new digital order management platform

Primary Connect+, the commercial arm of Primary Connect, has launched a new ‘digital front door’ to make it easier and simpler for our 1,300 customers and 80 carrier partners to track their orders from start to finish.

My Primary Connect, or MyPC, is a marketleading digital platform that manages the endto-end transport of Primary Connect+ all in one place.

Chris Brooks, Director of Primary Connect+ said that the team were excited to finally launch the new technology after almost two years in the making.

" MyPC step changes our customers’ experience and while it is early days, the feedback from our customers has been fantastic,” Chris said. MyPC provides our customers, carrier partners and teams with milestone visibility, ensuring the right inventory is delivered to the right place at the right time. Self-serve tools in MyPC will also allow our customers to download Proof of Delivery (POD), transport rate cards and also review transport lead times.”

More than 100 customers and 12 carrier partners have already been onboarded to MyPC. Its remaining carriers and customers are expected to be onboarded by July 2024.

Spring water manufacturer Nu-Pure Beverages was one of the first customers to be onboarded to MyPC.

Marshall Smalley, Nu-Pure Beverages Logistics Coordinator, said: "We really like the new MyPC. It's quicker to use which saves time and the benefits of traceability will be enormous."

Primary Connect+’s ambition is to become a digitally enabled market-leading supply chain solutions provider and MyPC is going to take it there.

Watch the short video to learn more about MyPC. For more information about MyPC, email info@primaryconnect.com.au Watch

Supplier All In sessions a success

InJuly and August, Primary Connect had the pleasure of welcoming hundreds of valued suppliers to our annual ‘Supplier All In’ events in Melbourne and Sydney.

These events are a fantastic opportunity for us to share supply chain insights and updates with our partners, as well as showcase some of the exciting initiatives and plans we have underway.

We presented to suppliers on the changing landscape of our DC network as we continue on our transformation roadmap.

We also spent time talking through some of the

standards our suppliers will need to meet to be ‘automation ready’ for our new Moorebank NDC and RDC.

Other important topics covered included safety, mental wellbeing from Healthy Heads in Trucks and Sheds, our ever-expanding Primary Connect+ supply chain solutions offering, replenishment updates, and discussions regarding pallets as we head into the Christmas period.

If you’d like to know more about the event or any of these topics, please reach out to supplychainpartners@woolworths.com.au

2023 Sustainability Report

At Woolworths Group, we are driven and united by our purpose of creating better experiences together for a better tomorrow. We are delighted to share the launch of our latest Sustainability Report, showcasing our progress in the last year across the People, Planet, and Product pillars. This report is aimed at fostering positive and meaningful change.

We firmly believe in the power of partnerships to drive transformative change and our Trade Partners are key to our success. We thank you for your ongoing contribution, trust and support.

The reporting suite includes our:

> 2023 Sustainability Report

> 2023 Modern Slavery Statement

> 2023 Climate and Nature Disclosure (p42–59)

> 2023 Sustainability Data Pack (Sustainability data section)

For more information, see our website.

Some milestones that highlight our progress include:

94% Recyclable, reusable or compostable for Own brand packaging

80%

Food waste diversion for Australian supermarkets

100% Responsibly sourced tea and coffee ingredients in Own brand packaging

14,000

Tonnes of virgin plastic reduced for Own Brand since 2018

Healthiest Own brand

4 years in a row

Ranked #1

Globally for KnowTheChain Food & Beverage Benchmark for our approach to human rights

Sustainability update

Commercial Sustainability Submissions

Sustainability Guidance now available for Secondary & Tertiary Packaging

As part of our Supplier Sustainability Council for Packaging and Recycling, we are now providing sustainability guidance for Secondary and Tertiary Packaging.

This guide is intended to supplement the Woolworths Supply Standards to support Trade Partners in the development of Secondary & Tertiary Packaging; taking into account sustainability considerations and waste streams available in our DCs and stores, whilst also considering current and future operational efficiencies.

Access the guide here or find it on Partner Hub. To enquire further about sustainability packaging opportunities that may have an impact on our supply chain, please contact our Primary Connect team for further guidance; supplychainpartners@ woolworths.com.au

Recycling labelling to support a circular economy for packaging recycling and inform customers on changes to soft plastics recycling

We know that recycling is confusing for our customers, and packaging recovery rates are well below the National targets as many recyclable packaging items don’t get recycled.

APCO’s (Australian Packaging Covenant Organisation) Australasian Recycling Label (ARL) scheme is a simple labelling system with consistent symbols to allow customers to easily see what is recyclable, conditionally recyclable or not recyclable.

Improving recycling at home will reduce recyclable packaging ending up in landfill, and help remove contamination from recycling streams, making it easier for businesses to access quality recycled content for packaging.

Our recent research shows that 50% of customers are familiar with the ARL, and of these, 91% use it regularly and 90% would like to see it on more packaging. We encourage our Trade Partners to become APCO members and display the ARL on pack, to support our transition to a circular economy for packaging. APCO recently launched an ARL SME program designed to support smaller Trade Partners to adopt the ARL.

Businesses already using the ARL should note changes released by APCO in July. Due to disrupted soft plastics recycling options, the ACCC considers the existing ‘Return to Store’ or ‘Store Drop off’ ARL icons

and REDcycle logos to be misleading to customers when applied on articles with soft plastic packaging.

A new “Check Locally” ARL is now available, directing customers to a digital tool to check their location and receive the relevant instructions on recycling options in their area. This tool will be updated as kerbside trials and instore collections ramp up over time.

Brand Owners have until 1 July 2025 to replace existing ARLs on soft plastic packaging with the new ARL, or to change to ‘Bin’ logo if the packaging doesn’t meet APCO’s new guidelines for soft plastics recyclability. Please refer to communications from APCO for further details.

Old:

New:

Helping customers make healthier choices

Health continues to be a priority for customers, and Woolworths Group has a goal to materially increase healthier choices in our customers’ baskets. Two ways to help us achieve this is to make it easier for customers to make healthier choices, and to evolve our range through new product development and product reformulation to improve the healthiness.

When developing or reformulating products, we know some Trade Partners, especially smaller businesses, may not have access to internal experts. To help, Woolworths Health & Nutrition team have developed a reference guide for new product development and reformulation covering considerations and implementation processes for adopting nutrition and health targets. We encourage smaller Trade Partners to consider how to incorporate these principles into product development processes.

To support customers to make informed choices when selecting products, we advocate for the adoption of the Government’s Health Star Rating system on pack. We are leading the way by displaying Health Star Rating on 100% of intended Own Brand products and we encourage our Trade Partners to consider increased usage of the HSR across their product portfolio.

To support HSR use for the growing number of online customers, Australian and New Zealand Food Ministers endorsed the display of HSR on digital platforms in July, including when the HSR is not on pack. Guidance on this will be published on the HSR website. We intend to work with our Trade Partners to grow our online HSR coverage across FY24, and will share updates about how to support this change. In the meantime, we encourage our Trade Partners to continue or start their journey to calculate the HSR for your products so this data is ready to share.

Sustainability Policy & Regulatory Updates

New Flushability Requirements and Labelling Policy

Did you know that flushing wet wipes down the toilet causes over $8m of damage to wastewater infrastructure in Sydney alone? With a new standard (AS/NZS 5328:2022 Flushable Products) available that defines requirements for products to be safely flushed, we can now help customers to more clearly distinguish between products which can be flushed, from those likely to cause damage to infrastructure or the environment.

Woolworths has now published the new Woolworths Group Flushability Requirements and Labelling Policy, which applies to Own Brand and Vendor Branded products that carry claims of flushability, or could be perceived to be flushable. This policy requires that, by May 2024, in-scope products claiming flushability must be tested to meet the new standard, and all other wipes products that are likely to be disposed of in a bathroom setting must carry clear on-pack “DO NOT FLUSH” instructions in line with the standard. We have communicated this policy to all relevant Trade Partners, and are working with our commercial team to support any queries regarding the policy.

Single Use Plastic Policy Update and Integrated Cutlery Regulation

As communicated recently, we have expanded and published our Woolworths Group Single Use & Reusable Plastic Policy, which now covers all Owned and Vendor Branded products sold across the Woolworths Group.

We also wrote to Trade Partners in June & July to advise of upcoming State legislative bans on expanded plastic packaging and Integrated single use plastic items. Trade Partners with any concerns about their ability to comply with the policy or upcoming regulations should contact their Category Manager in the first instance.

Elevate your brand this festive season with Cartology

For the third consecutive year, Cartology has joined forces with research agency Nature to delve into the evolving customer landscape, shaping a roadmap for brands to resonate and captivate during the festive season.

Our quest: insights aimed to decipher the post-pandemic Christmas sentiment, decode digital shopping behaviours, and unlock opportunities amid shifting cost dynamics.

Embracing the heart of Christmas

As the world adjusts to a new normal, we sought to grasp the heart of Christmas in 2023. A resounding 51% affirm that Christmas holds their favourite spot in the annual calendar, marking a notable 7% surge YoY. Christmas plays a special role in the family calendar, with 76% putting food at the centre of celebrations with lunch.

Digital is the front door to Christmas

Our study reveals how customers leverage novel digital behaviours to navigate their Christmas shopping escapades.

Digital is powering inspiration with 40% of customers searching for recipe ideas before completing their Christmas shop. Economic growth is also prominent across a range of in demand categories during the Christmas period led by dairy snacks (+24%), Seafood convenience (+19%) and dairy butter/margarine (+18%). This insight provides brands with a window of opportunity to enhance their online presence and engagement strategies.

Value takes centre stage this year

Amid the ebb and flow of living costs, Christmas presents brands with a unique prospect. By understanding customer needs in the evolving landscape, brands can cater to customer sensibilities, offering the value and meaning that customers are looking for. When asked about their grocery shopping last Christmas, 35% of customers said they searched for promotions while 24% of customers said they cooked more homemade dishes and 22% said they bought cheaper brands.

There’s never been a more important time to reach, connect and engage customers and Cartology is here to help your brand win this Christmas.

So how will your brand show-ho-ho up this Christmas?

Get in touch with the team at Cartology for more.

Global recognition as a leader in the Human Rights space

Woolworths Group has received global recognition as a leader in the Human Rights space, by two benchmarks.

Woolworths prioritises two benchmarks in the Human Rights space – Know the Chain and the Corporate Human Rights Benchmark (CHRB). The Know the Chain benchmark is specific to forced labour, assessing company responses to identifying, addressing and remediating modern slavery risks in their supply chain, whilst CHRB covers Human Rights more broadly.

Corporate Human Rights Benchmark

Woolworths was ranked the number one retailer, and third overall food company globally with a score of 42.1 out of 100.

KnowTheChain Benchmark

For the first time, Woolworths Group has topped this benchmark in the Food and Beverage category with an overall score of 56 out of 100.

Highlights include that Woolworths is the highest scoring company on the themes of Recruitment and Remedy, with strong disclosure on how we implement our policy prohibiting worker-paid recruitment fees.

Woolworths was also commended for how we trace compliance of labour providers used by suppliers and growers in our horticultural supply chain.

These benchmarks have validated our program, and importantly help to guide our approach, there is much more to do. We have reviewed both benchmarks and identified gaps that were already part of our F24 plans.

These results are only possible because of the hard work, energy and effort that our suppliers and teams put in everyday to implement our program with a dedicated focus on achieving outcomes for some of the most impacted workers in our supply chain.

Baking community favourites for 50 years

Thisyear, we’re celebrating half a century of the Woolworths Bakery. Generations of Australians have grown up knowing and loving our fresh baked good. We’re proud to still be providing families with a wide range of affordable and delicious favourites.

A few select stores began baking their own goods in the early 1970s. Before then, breads and cakes were supplied from surrounding towns and suburbs. With the launch of The Fresh Food People in 1987, in-store bakeries became a regular part of the Woolworths offering.

Originally, our bakeries operated under the name Mr Pickwick’s. That’s not the only

thing that’s changed. For years, we sold cakes with a mock cream filling. Because we wanted to give our customers the very best, we transitioned to fresh cream. Since then, customers have fallen in love with our fresh muffins, sliced breads, and finger buns, which continue to fly off the shelves.

Today, we’re working to find solutions that align with our sustainability initiatives. We’re also constantly creating new health-friendly options that are in-step with evolving trends and the changing needs of our customers. We’re also using our bakeries to give back to the community. Partnering with OzHarvest, our Santa Cookies help support the community when they need it most.

This Spring, Woolworths is excited to launch an extended new range of native Australian Spring Garden Ornaments to help create a natural and welcoming environment of cohabitation in your Spring Garden. From 23rd August to 26th September, for every garden ornament sold, Woolworths will donate 50 cents to WIRES to support the rescue, care and feeding of sick, injured and orphaned native wildlife.

The purpose of this initiative is three-fold.

Commercial: Drive sales of Native Australian Spring Garden Ornaments.

Environmental: Raise awareness of methods and importance of cohabitation with native Australian wildlife.

Community: Funding for many thousands of volunteer wildlife rescue carers across Australia to purchase food for the animals in their care.

And did you know, that Woolworths is now the largest provider of free food for wildlife in Australia?

Category Updates

A big thank you to all our Trade Partners for joining us in-person at our Sydney support office and online for our September Category Updates! Our teams had the opportunity to share their strategy updates and spend time engaging with our Trade Partners.

EVERYDAY NEEDS

FRUIT AND VEG

GROCERY FOOD

Store Audit Initiative

Ensuring compliance and strengthening Trade Partnerships

We've recently launched a store audit initiative with the primary objective of enhancing transparency and compliance within our Promotional sales plan. Stephanie Hinks, Head of Supplier Engagement at Woolworths, provides us with insights into this initiative.

Why are we doing this?

Following valuable feedback received through Voice of Supplier regarding our promotional plan execution, we've initiated a store audit program. This program serves as a compliance check to ensure that the products showcased in our stores align with the commercial agreements we have in place with our valued Trade Partners.

In keeping with the principles outlined in our Trade Partner Charter, which emphasise "doing what we say" and "making it right when we fall short," we are committed to fostering trust and reliability in our Trade Partnerships. This initiative underscores our dedication to these core values.

What does this initiative entail?

The store audit initiative is relatively new, having been in-field for just a couple of months. We randomly select 200 stores a fortnight for thorough audits, with a specific focus on confirming the accurate placement

of products featured in promotional displays. We generate a report that highlights the level of compliance in accordance with the sales plan. Importantly, these reports offer actionable insights to guide necessary adjustments for ensuring compliance. They also consider external variables, empowering our Replenishment, Operations, and Commercial teams to better support our stores.

Can you share any results from the pilot audits conducted?

We are pleased to report that our initial audit results have been promising, with a commendable compliance rate of 87%. These findings have illuminated areas where our internal teams can offer enhanced support to our stores, enabling them to meet their commitments effectively.

Why is this important for our Trade Partners?

Our ultimate objective is to increase the audit frequency across all our stores which will benefit both our Trade Partners and store teams. By ensuring compliance and promptly addressing any issues that arise, we underscore our unwavering commitment to fulfilling our promises and fostering collaborative success.

Member Pricing

A new way to reward our customers in-stores

Our Everyday Rewards Members are our best customers, and with over 14 million members, we have a huge opportunity to reward them even further. We’re excited to introduce our Everyday Rewards Member Pricing initiative launched last month in our Woolworths Supermarkets and Metro stores and soon to come in Big W.

Taking Member Pricing in-store

This exciting new benefit allows our Everyday Rewards Members to access exclusive member prices in our stores. It’s a way of giving our members even more value when they shop with us. When customers visit us in-store, they’ll be able to notice that certain products now have special Member prices, clearly displayed alongside the standard prices. This will allow customers to see the savings they can enjoy as an Everyday Rewards Member.

Stack up the savings

We understand that our members love earning points and receiving special offers. The introduction of Member Pricing does not replace these benefits but rather complements them. Members will continue to earn points on purchases and receive exclusive offers as they did before. Member Pricing is our way of stacking even more value on top of these existing benefits.

How to access Member Pricing

Accessing Member Pricing is easy. Look out for Member Price tickets in-store or Member Price symbol online at Woolworths & Woolworths Metro. If you're already a member, simply scan your card at checkout or link your card online for instant discounts on eligible products. You can also reactivate your membership or join the Rewards program with the Woolworths app.

What products are included?

We’re excited to roll out Member Pricing on a selection of products including Meats, Ready Meals, Chips, and Snacks. Our goal is to expand this initiative across other product lines and categories in the near future, so stay tuned for even more ways to save!

A shout-out to our Trade Partners

We would like to extend our appreciation to our Trade Partners who have embraced and taken part in this initiative. Your support is invaluable as we work together to continue to provide value to our customers. For our Trade Partners who are interested in getting involved, please reach out to your respective Category Managers who can provide details.

TRADE PARTNER OF THE YEAR AWARDS 2023

SAVE THE DATE

Tuesday, 5th December International Convention Centre, Sydney