THE price war between Coles and Woolworths has extended to convenience stores.
Coles yesterday moved to cut its milk price to $1 a litre at its more than 620 Express stores around the country, reflecting the price at its major supermarkets and those at Woolworths, adelaidenow.com.au reports.
Discount bread is also on the shelves and Coles has not ruled out lowering prices on other staples.
Coles said it had aligned prices with supermarkets because customers said they could not understand why they paid more for the same product at Coles Express.
The Queensland Dairy Farmers Organisation yesterday called for a boycott of supermarket-label milk in response to what it said was a shallow marketing tactic from Coles that risked more farming job losses.
But a Coles spokeswoman said: "This investment is funded by Coles and not dairy processors or farmers. The comments from the QDO are nothing new and continue to wrongly represent the facts about milk pricing.
"Since Coles cut the retail price of milk almost two years ago milk production in Australia has risen for the first time in a decade."
The Australian Food and Grocery Council has meanwhile claimed that Coles' home-brand products are reducing choice for consumers,
citing the chain's own data that shows its product range has dropped by 11 per cent, from 62,000 products to 55,000 from mid-2010 to mid-2012.
AFGC chief executive Gary Dawson said a loss of 7000 products was significant.
"These figures confirm what shoppers report anecdotally - that they often can't find their favourite products on the shelves any more," Mr Dawson said.