ANNUAL
REPORT
2014
CONTENTS
A MILESTONE YEAR........................................................................................................................... 2
ABOUT US.......................................................................................................................................... 3
OUR STRATEGY.................................................................................................................................. 4
OUR HIGHLIGHTS.............................................................................................................................. 5
WORKING WITH OUR SUPPLIERS....................................................................................................6
IMPROVING OUR STORE NETWORK............................................................................................... 10
DELIVERING EVERY DAY VALUE & HEALTHY OPTIONS...................................................................12
EXPANDING CHANNELS, PRODUCTS & SERVICES............................................................................... 14
SOURCING RESPONSIBLY................................................................................................................ 16
SUPPORTING FOOD RESCUE............................................................................................................21
IMPROVING CANCER CARE FOR FAMILIES..................................................................................... 22
SUPPORTING LOCAL CANCER SERVICES........................................................................................ 24
ENGAGING KIDS.............................................................................................................................. 26
REDUCING OUR IMPACT................................................................................................................. 28
BUILDING GREAT CAREERS.............................................................................................................30
CELEBRATING 100 YEARS................................................................................................................ 36
For feedback about our report or to ask a question, contact:
Coles Corporate Affairs
Level 2, 800 Toorak Road
Hawthorn East, Vic 3123
Tel: 1800 061 562
Email: Coles.Customer.Care@coles.com.au
Unless otherwise stated, the information in this report has been compiled as at 30 June 2014. Coles Supermarkets Australia Pty Ltd and its related companies (including their
directors, officers, employees and agents) (Coles) make no warranty about the accuracy or completeness of this information. Coles will not accept any liability for any loss
resulting from your use of this report, including any investment decisions you may make on the basis of its content. You should obtain professional advice before proceeding
with any investment.
© Coles Supermarkets Australia Pty Ltd 2014. You may not reproduce any section of this report without the prior written consent of Coles Supermarkets Australia Pty Ltd.
ANNUAL REPORT 2014 | 1
A MILESTONE YEAR
Our 2014 Annual Report lays out some wonderful stories of
how more than 99,000 team members have contributed
to our business over the past year – and it’s been a big
year indeed. We’ve celebrated our centenary, welcomed a
new leadership team and launched 80 new format stores,
including eight superstores.
As we strive towards becoming a world class retailer,
we’ll look at how we can be a little better every day to
deliver great value, quality and service to our customers.
One of the key ways we’ll achieve this is through cutting
complexity and simplifying the way we work, so that we
can invest even further in lower prices.
Over the past 12 months we’ve also worked hard to
provide greater value to our customers by continuing
to lower prices.
In the year ahead, transforming our liquor business will
also be a strong focus, as we work to improve our store
network and customer offer and put this part of the
business back on track.
Our approach of keeping prices down continues to make
a big difference to families shopping on a budget.
Our analysis shows that a sample basket of products
bought from Coles today is now 5.2 per cent cheaper than
in 2009, saving an average household $570 in today’s
terms. So while inflation has pushed most things up,
a shopping basket at Coles has actually got cheaper.
As you will see from our report we’ve much to celebrate,
but it’s time to enter the next phase of growth for Coles.
I have every confidence that we can meet these new
challenges and continue the successful legacy of our
founder, GJ Coles.
John Durkan
Managing Director, Coles
This year, we celebrated 100 years of serving the Australian
community. We’ve come a long way since GJ Coles founded our
business in 1914 with just one shop in Smith St Collingwood,
and we retain his promise to provide great quality, affordable
products and services. You can read more about how we
celebrated our centenary milestone on pages 36-37.
2|
ANNUAL REPORT 2014
ABOUT US
Coles is one of Australia’s largest
retailers, providing fresh food,
groceries, general merchandise,
financial services, liquor and
fuel through our national store
network and online.
OUR WORKFORCE OF
99,326 TEAM MEMBERS
20,425
28,505
28,527
1,878
Meet some of the people that
make our business a great
place to work and shop
Suzanne Justice works in Fresh Produce
at our Mount Gambier store and was
recognised with a ‘Caring Passionately’
Award after she organised a team
bowling night in her own time that raised
over $500 for welfare agency, ac.care.
Russell Ward at Coles Balgowlah is
one of our champion fundraisers and
passionate about Redkite! If you visit
Balgowlah you might see Russell rattling
a donation bucket. No wonder Coles
Balgowlah has raised over $33,000 for
Redkite since January 2013!
11,192
6,817
Scott Steele, Coles Express Fairway
Waters, selected to visit Woolianna
School on the Daly River as part of the
Red Dust Role Models Healthy Living
program which promotes nutrition,
hygiene and staying active in the
community.
Nikki Love from Tom’s Tavern Townsville
(part of Spirit Hotels), recognised at the
Queensland Hotels Association (QHA)
Awards for Excellence, taking out Best
Employee – Administration. Nikki loves
the people she works with, being useful
and the opportunity to learn.
We operate more than 2,300 retail outlets nationally
and we’re located from as far south as Blackmans Bay
in Tasmania to Casuarina in the Top End.
829
Chris Anscombe, Fresh Produce
Manager at Coles Baldivis, who’s team
took out the 2014 WA Fresh Produce
Retailer of the Year Award for excellent
customer service and a top quality
product range.
1,153
Leo McCarthy of Store Support Centre
is our longest serving team member,
celebrating 50 years with Coles this year.
Leo joined Coles Glenferrie (then known
as S.E. Dickens) in 1963. On finding out
he had a job, Leo wasn’t told by email or
phone – he received a telegram!
Steve Tuffin, Duty Manager at Coles
Glenorchy, prides himself on customer
service. If a customer can’t get what
they’re looking for, Steve is there to find
the product and personally deliver it to
their house. Who could more deserve a
Coles ‘Caring Passionately’ Award?
Jessica Cramp, one of our bakers
at Coles Queanbeyan, awarded Best
Apprentice Exhibit (1st and 2nd Year)
and Best Apprentice Exhibit (Open) at
the Royal Canberra Show this year. Her
motto is “practice, practice, practice”. 3
OUR STRATEGY
Financial Services
BOLDLY
EXTEND
into new
channels
& SERVICES
4|
ANNUAL REPORT 2014
OUR HIGHLIGHTS
20 QUARTERS
OF INDUSTRY
$ PROFIT +12.3%
FOOD & LIQUOR
SALES +4.7%
FOOD & LIQUOR
CONVENIENCE
STORE
SALES +6.0%
FOCUS ON FRESHNESS FOR
COLES BRAND
100% 100%
96%
OUTPERFORMANCE
20 PER WEEK
CUSTOMER
TRANSACTIONS
MILLION
BOLDLY EXTEND INTO NEW
CHANNELS AND SERVICES
400,000
CREDIT CARD
FRESH
MEAT
FROZEN
VEGGIES
FRESH
FRUIT & VEG
GROWN IN
AUSTRALIA
ACCOUNTS
350,000
INSURANCE
POLICY
HOLDERS
70%
MORE
COLES ONLINE CUSTOMERS
SUCH AS DEVONDALE MURRAY
GOULBURN, NORCO & SIMPLOT
7
ACTIVE
& 18 PARTNERS
EXTEND VALUE LEADERSHIP
DELIVER A BETTER STORE NETWORK
LONG PARTNERSHIPS
TERM
WITH AUSSIE SUPPLIERS
CONTINUING TO
INVEST IN
LOWER PRICES
FOR CUSTOMERS
MILLION
MEMBERS
19 NEW
STORES
61
RENEWAL
STORES
ANNUAL REPORT 2014 | 5
WORKING WITH
OUR SUPPLIERS
Australians are buying 70 per cent more fruit and vegetables
from Coles compared to six years ago, thanks to our growers
helping us to deliver a bigger, better and fresher offer.
6
Today, 96 per cent of fresh fruit and vegetables sourced
for Coles customers are Australian grown, along with
100 per cent of fresh milk and 100 per cent of fresh meat
from the meat department.
The deal means growers will need to plant more crops to
supply an extra 1.3 million kilograms of mixed vegetables
and 1.4 million kilograms of potatoes, previously sourced
from China, Thailand, New Zealand and Europe.
And, we’re working hard to increase this by seeking
long-term contracts with suppliers to support home
grown Aussie food. In January 2014, we announced we
would replace all frozen vegetables in the Coles Smart
Buy range with 100 per cent Australian-grown vegetables
through a five-year contract with Simplot.
The extra business for Simplot, which has been a valued
supplier of Coles for more than 15 years, represents a
12 per cent increase in the volume of private label frozen
vegetables they supply us.
Tasmanian potato grower, Justin Shephard, supplies Simplot for Coles frozen vegetables.
CURTIS GOES ON TOUR
In February this year, Coles Ambassador and Chef,
Curtis Stone, met more than 100 Coles growers,
representing over 20 farms and many rural and
regional communities as part of our 100 year
celebrations. The visits were to recognise the
important role our suppliers have played in our
history as a home grown Australian business.
Curtis and some of the Coles’ team visited Rugby
Farms in the Lockyer Valley (QLD), Mitolo Group in
the Riverland Region (SA) and Mercuri Tomatoes in
the Goulburn Valley (Vic).
“Over the five
years I have been working
with Coles, I have had the
privilege to visit farms and
work with growers from across
the country. I cannot think of a
better way to celebrate Coles’
great quality Australian fresh
produce, than showcasing
some of these great farmers
who are supplying Coles.”
ANNUAL REPORT 2014 | 7
Opening the Laverton plant: Victorian Premier - Denis Napthine,
Devondale Managing Director - Gary Helou, Prime Minister - Tony Abbott,
Coles Managing Director - John Durkan and Devondale Chairman - Philip Tracy.
DAIRY EXPANSION
As a result of a 10-year agreement to supply over
400 Coles stores with 3.2 million litres of milk per week,
Devondale Murray Goulburn has invested $160 million
in two state of the art milk processing plants in
Laverton (Vic) and Erskine Park (NSW) – the biggest
single investment in dairy processing since deregulation.
In 2013, Norco Co-operative Limited was awarded a
five-year contract to supply 60 million litres of milk a year
for Coles Brand in northern NSW and southern QLD.
More than 200 new dairy farmers will benefit and 22 more
roles have been created at Norco’s processing plant.
8|
ANNUAL REPORT 2014
GROWER OF THE YEAR
A long-time supplier to Coles, Belinda Adams, was
named AUSVEG’s 2014 Grower of the Year for her
significant role in managing the continued growth of
her Gold Coast family business, Coastal Hydroponics,
and her involvement in the broader industry.
Belinda’s parents, Barry and Lynn Moss began the
business, Coastal Hydroponics, in the early 1980s,
supplying lettuce on the back of a ute directly to
Coles Nerang.
The business now has a fleet of trucks and delivers
lettuce, herbs and salad mix 24 hours a day to
more than 170 Coles stores across Queensland.
Belinda Adams became manager of Coastal
Hydroponics in 2008 after making a career
change from primary school teaching.
ANNUAL REPORT 2014 | 9
IMPROVING OUR
STORE NETWORK
Since 2008, Coles has spent over $3 billion in rebuilding
across Australia to dramatically improve stores.
Over the past six years, we have opened 100 stores
and refurbished more than 300 stores. This year, as part
of our centenary, we announced a further investment
of $1.1 billion in new supermarkets over the next three
years, which will kick start careers and provide jobs for
thousands of Australians.
The first phase of a $90 million expansion at the
Waurn Ponds Shopping Centre in Geelong, Victoria,
paved the way for 500 new jobs in the region.
10 |
ANNUAL REPORT 2014
The centre features a new large format supermarket and
a First Choice Liquor store.
New superstores at Indooroopilly and Brookside (QLD) offer
customers a world-class supermarket, providing the latest
in fresh food features and technology, including a café
patisserie serving Lavazza coffee and a Sushi Sushi bar.
COLES EXPRESS
BRISBANE
AIRPORT
The new Coles Express site at
Brisbane Airport was one of
10 new sites to open during the
year. The site features a modern,
geometric roof and is open 24 hours
a day. A further 18 Coles Express
sites were refurbished, expanding
the availability of great value
coffee at 80 cents a cup, frozen
Coke and Food to Go.
NEW LOOK
LIQUORLAND
A refurbished Liquorland at
Brandon Park shopping centre in
Melbourne’s outer east opened in
June with a clear value message
‘New Lower Prices’ and a new
layout providing clearer navigation,
less clutter, a tailored range and a
fresh look and feel.
ANNUAL REPORT 2014 | 11
DELIVERING
EVERY DAY VALUE &
HEALTHY OPTIONS
Over the past year, we lowered more prices as part of our
deeper down down campaign, launched new products and
raised awareness of healthier options for customers.
12 |
ANNUAL REPORT 2014
From left to right: Dr David Crawford - Deakin University, Andrea Currie - Coles Quality Team,
Professor Kylie Ball - Deakin University and Beth Scholes - National Heart Foundation.
VIC HEALTH AWARD
HEALTHY CHOICES AISLE
We were recognised with a 2013 Victorian Health
Promotion Foundation Award for promoting healthy
eating. Coles supported Deakin University and the
National Heart Foundation with a research project to test
ways to improve fruit and vegetable consumption among
low income women and their families in Victoria.
In June 2014, we launched a Healthy Choices aisle
for Coles Online customers as a result of working in
partnership with the George Institute for Global Health.
The improved navigation means our online shopping
customers can shop from an independently curated
aisle of products that have been assessed by the
George Institute as being healthier choices.
HEALTH STAR
RATINGS
Products featuring a new health star
labelling system, such as speciality
milks, cereals and produce, hit our supermarket shelves
this year. The labelling makes it easy to find the nutritional
content of a product and compare products. Higher star
products have less energy, saturated fat, sugars and sodium
and/or more positive nutrients such as dietary fibre, protein,
or more nutritious ingredients such as fruits, vegetables,
nuts and legumes.
COLES ONLINE
More customers are shopping via Coles Online than
ever before. Our site was enhanced to make it easier
for customers to shop via their mobile, shop from a list
of products they usually buy, and offer better value via
catalogue specials and Down Down pricing.
ANNUAL REPORT 2014 | 13
EXPANDING CHANNELS,
PRODUCTS & SERVICES
Offering our customers new and exciting innovative products
and services is what sets us apart.
14 |
HESTON FOR COLES
AWARD WINNING TREAT
Coles and international chef Heston Blumenthal have
launched 15 new ‘Heston for Coles’ branded products
spanning the ready meal, meat, bakery and grocery
categories. The new range includes beef burgers,
sausages, pies and sauces, not to mention Heston’s
famous Hidden Orange Christmas Pudding! A number
of products seek to use local flavours, such as our Beef
& Pepperberry Sausages and Pork & Sage Sausages.
Have you tried our Coles Classics Peanut Butter Ice Cream
4 Pack? It was awarded Gold at the 2014 Dairy Industry
Association of Australia
(DIAA) product awards.
Dozens of other Coles
Brand products have
been recognised for
their great quality and
they’re great value too.
ANNUAL REPORT 2014
In October 2013, Coles announced
a partnership with the recipe site
Taste.com.au to tap into the increasing
use of mobile devices in the kitchen.
As part of this, our customers can
access recipes from Curtis Stone and
our weekly specials across desktop,
mobile and social platforms.
Coles customers can now build
their shopping list or shop directly
through Coles Online from the many
recipes available on Taste.com.au.
Weekly specials and every day prices
are matched to recipes on the site.
MEDIBANK JOINS
FLYBUYS
We were excited to add health insurer, Medibank, to our
growing number of flybuys partners during the year.
Coles and Medibank have formed an exclusive
partnership to reward flybuys members for better health.
Medibank members now earn one flybuys point per $3
paid on their Medibank premiums, and triple points for
every dollar spent on fruit and vegetable purchases in
Coles stores across the country.
COLES LAUNCHES LIFE
INSURANCE
We expanded our range of financial services during the
year, adding Coles Life Insurance to our suite of insurance
products, which includes Coles Car Insurance and
Coles Home Insurance.
COLES MOBILE WALLET
We’ve made some exciting developments in the world of
contactless payments with the new Coles mobile wallet.
Now, Coles Credit Card customers can apply a pay tag
to their mobile phone and use it to make quick and easy
payments wherever MasterCard PayPass is displayed.
Also featuring a flybuys barcode, the pay tag allows customers
to collect flybuys points so there’s no more worrying about
forgetting your wallet when doing your shopping!
The mobile wallet also includes the Coles Credit Card app
that provides customers with easy access to their card
balance and transaction history. Customers can even view
their latest flybuys points balance and activate all their
exclusive offers on the app, which is great for keeping on
top of deals on your grocery shopping.
3311
3311
Through a new partnership with MetLife, Coles is able to
offer affordable life insurance cover, starting at as little as
$1 a week. Coles Insurance was launched in 2010 and has
more than 350,000 policyholders so far.
ANNUAL REPORT 2014 | 15
SOURCING
RESPONSIBLY
We care about where our food
and ingredients come from,
and we work with our suppliers
and industry experts to adopt
responsible practices that look
after people, animals and the
environment.
16 |
ANNUAL REPORT 2014
RSPCA APPROVED
CHICKEN
Since January this year, all Coles Brand fresh chicken
meat has been farmed to RSPCA Approved standards
from approximately 1,000 RSPCA Approved barns
across Australia.
Our shift to RSPCA Approved chicken has improved the
lives of millions of meat chickens and has been made at
no added cost to customers.
Coles RSPCA Approved chickens are raised in barns farmed
to the RSPCA Approved Farming Scheme Standards, which
allow birds to freely exhibit natural behaviours such as
perching, scratching and foraging. RSPCA assessors visit
these farms at least four times in the first 12 months and
twice a year in following years to ensure the RSPCA’s higher
welfare standards are maintained.
“The number of chickens raised on RSPCA
Approved farms has grown each year,
from just over 8.7 million in 2012 to
over 72 million in 2013. This was due
substantially to a decision by Coles
Supermarkets to use RSPCA Approved
chicken in all its own brand of fresh
chicken from January 2014.”
RSPCA’s Approved Farming 2013 Impact Report
Robert Nichols of Nichols Poultry in Sassafras, Tasmania,
is one of Coles’ suppliers of RSPCA Approved chicken.
As well as supporting better animal welfare standards, Rob
manages his business with a view to being sustainable and
sharing success across the local economy. Since becoming
a Coles’ supplier of RSPCA Approved chickens, his business
has flourished and now sources from another six farms
in the Sassafras area to satisfy the demand coming from
Coles’ customers. Rob also sources his grain locally, uses
wind technology to run his operations and shed waste is
composted to minimise the need for fertilisers.
17
PALM OIL
We have committed to using 100 per cent
certified sustainable palm oil for Coles
Brand products by 2015.
We began converting products in 2012
and since then have converted over 180
products from our bakery section, including
over 100 lines of in-store baking mixes used
for bread, rolls, doughnuts and cakes.
18 |
ANNUAL REPORT 2014
For example, Coles French stick and 7 Seeds
& Grains rolls now use sustainable palm oil.
This is shown on the label, making it
easier for customers to make an informed
purchasing decision. A list of these products
can be found at coles.com.au.
Coles’ efforts were recognised in WWF’s
2013 Palm Oil Buyers Scorecard, receiving
the highest score of any Australian retailer.
FAIRTRADE
For the second year running, we were
proud to be awarded Fairtrade Retail
Chain of the Year (2014). We provide
a wide range of Fairtrade Certified
products and will add to these in the
near future.
Fairtrade provides farmers with
an additional sum of money (the
Fairtrade Premium) for investment in
social, economic and environmental
development in their community, such
as educational and medical facilities.
In the last year, sales of Coles brand Fairtrade Certified
coffee generated $393,000 in Fairtrade Premium, and
overall the Fairtrade Certified coffee category in Coles
generated $714,000.
Coles Finest Ethiopian Coffee Beans are sourced from
Oromia Coffee Farmers Cooperative Union (OCFCU),
the largest Fairtrade coffee producer in Ethiopia.
“Fairtrade has definitely helped our
community - it has helped us improve
our school and water supplies. It has also
made a big difference in the price we
get for our coffee with the guaranteed
payment. We simply want you to buy
our coffee at a fair price so we can
be independent.”
OCFCU member, Workineh Heldaja.
OCFCU invests their Fairtrade Premium into equipment
such as washing stations to process members’ coffee,
as well as social infrastructure such as schools and
classrooms, health clinics, and clean water supply stations.
PAPER PRODUCTS
Coles currently sources over 160 paper products, such
as paper plates, greeting cards, serviettes, tissue paper
and stationery, which has been certified to a forestry
sustainability standard – the Forestry Stewardship
Council or PEFC. This means that a growing number
of our suppliers are sourcing forest fibre that can be
traced through the supply chain and follow responsible
management practices.
CAMBODIA MEALS
PROGRAM
During the year, we joined a 12 month research study in
Cambodia with the International Labour Organization,
to understand the effect of meal provision on worker
nutrition and productivity.
Approximately 850 workers at the AbelMax factory,
from which we source some of our MIX range, are being
served a supplementary healthy daily meal, courtesy
of Coles. The idea for the program came about because
it was observed that some Cambodian workers did not
have access to ample fresh, nutritious food on site.
Meals provided change daily and factory workers are
able to choose their meal from an extensive menu.
As a result of the program, the factory has invested in
a covered dining area to support the serving of meals.
The program will measure the impact of better nutrition
on the health and productivity of the workers, and if
successful, we will consider expanding this to other
Cambodian factories from where we source.
SEAFOOD
Our commitment to improve how we source Coles Brand
canned tuna has resulted in some ground-breaking
research into how we potentially verify that our fish has
been sourced without the use of fish aggregating devices
(FADs), which can be harmful to other sea life. This new
verification system will be tested in the Western and
Central Pacific Ocean this year.
ANNUAL REPORT 2014 | 19
OVER 500
20
DISTRIBUTION
CENTRES
➜
6
+
➜
STORES
13
MILLION
MEALS*
➜
1,200
COMMUNITY
FOOD
PROGRAMS
From left to right: Elaine Montegriffo (SecondBite) with John Durkan (Coles) and Andrew Knight (SecondBite).
*Since 2011
SUPPORTING
FOOD RESCUE
Over two million Australians don’t have access to
enough healthy food, and need to call on emergency
and charitable food programs and breakfast clubs
that operate all over Australia.
That’s why Coles has worked with SecondBite
since 2011 to distribute surplus fresh fruit and
vegetables and bakery items to address the
issue of food insecurity.
SecondBite has grown from a relatively small
not for profit principally operating in Victoria
and Hobart and delivering to 300 community
food programs to a national organisation
with 23 refrigerated vans and trucks.
Today, SecondBite provides food to over
1,200 food programs, providing an average of
17,000 fresh meals per day to people in need.
Through engagement and partnership with
SecondBite, Coles is participating in being
part of the solutions to food waste and the
disadvantage that comes from not having
access to fresh, nutritious food on a daily basis.
“Nothing shows the impact of our partnership
more powerfully than the words of the people
who receive the fresh food we provide.
“Without SecondBite’s help my
family would be really struggling.
My kids now eat a lot more fruit
and veggies and when I collect my
food parcel I know I am going to
have a good day, a good week.
It really gives us back our dignity
to lead a normal life.”
The nutritious food provided through the Coles
Community Food with SecondBite partnership
is literally changing the lives of mums, dads,
children and youngsters doing it tough in
communities across Australia.
By working together, the teams at SecondBite
and Coles are providing 17,000 fresh nutritious
meals every
single day to families in need
15%
– what a great partnership!”
25%
15%
Elaine Montegriffo, CEO SecondBite
17%
WHERE THE FOOD GOES
15%
25%
15%
Community kitchens
– dine in meals
Food vans, school
& snack progams
Food parcels
17%
28%
Cooking education
programs
School breakfast
& lunch programs
10%
8%
28%
WHO WE’RE HELPING
Low income individuals
& families
10%
8%
25%
Homeless youth
& adults
57%
Asylum seekers
& refugees
Aboriginal & Torres
Strait Islanders
ANNUAL REPORT 2014 | 21
IMPROVING CANCER
CARE FOR FAMILIES
A message from
“In just 18 months, Coles has established a ground-breaking
national charity partnership with Redkite to raise much
needed funds and awareness to bridge serious gaps in
support for children and young people with cancer across
Australia. From the Coles leadership team to stores and
customers, the entire Coles community has come together
to raise an outstanding $10 million to help transform
cancer care.
Importantly, Coles promotions have helped to increase
Redkite’s awareness to 46%; together we are determined
to ensure all families who need us receive support.
$10 million raised to help
transform cancer care.
Every dollar raised is having a real impact every day.
Coles is helping to relieve financial and emotional
pressures in real ways when and where support is
needed for families.
Every day, four families receive the devastating news
that their child has cancer, a disease that takes more
Australian children’s lives than any other. Thanks to
Coles, Redkite is helping more families than ever before.
Professional counselling and support is available in
hospitals across Australia, and home care included
providing approximately 7,000 telephone and email
information and counselling sessions. Coles support
ensured 52%* more families received critical financial
assistance. In addition, they enabled the significant
expansion of our education and career support program
to help young cancer patients and survivors achieve their
education and career aspirations.
Today, Redkite is on the path of better supporting
Indigenous and culturally diverse families, thanks to Coles.
Too often these families can be at risk of missing out on
essential services. A translation service is now available for
non-English speaking families and we are investigating
ways for Indigenous Australians and culturally diverse
families to more easily access support.
Since January 2013, Coles has donated five cents from
the sale of every loaf of specially marked Coles Brand
and Smart Buy bread to Redkite, team members have
held in store fundraising activities and customers have
bought donation cards to visually represent their collective
support of children and young people with cancer. It is
inspiring to see the genuine passion and enthusiasm of
the Coles team who have held hundreds of fun activities
within their communities.
*Compared to 12 months prior to the commencement of the partnership.
22 |
ANNUAL REPORT 2014
The talented and dedicated Coles team is also building
Redkite’s skills and capacity by working on special projects
and mentoring us. For example, we are strengthening our
digital footprint to improve family access to supportive care.
Thank you Coles for joining us to help transform
cancer support in Australia.”
Jenni Seton
CEO, Redkite
DARE TO DREAM
Thanks to Coles support, Redkite’s Dare to Dream
Scholarship Program has awarded 77 scholarships
since January 2013. Angelika Dark, the recipient of the
2014 national scholarship, will pursue her dream of
becoming a computer artist after taking time off from
school following her diagnosis with a rare form of
ovarian cancer at 16 years of age.
ANNUAL REPORT 2014 | 23
SUPPORTING LOCAL
CANCER SERVICES
Every year, Coles Supermarkets, Coles Express and our generous
customers lend their support to help raise badly needed funds to
expand the range of services available for cancer sufferers.
Over the last year, Cancer Council has reached over
55,000 people affected by cancer across Australia and
will reach many more in the coming year, as a result of
a whopping $2.8 million raised at Coles for Daffodil Day
2014. Our biggest single fundraising campaign result ever!
Funds raised at Coles are directed to local services in
each state and territory to ensure that our support
reaches people in need all over Australia. For example,
our fundraising will assist Cancer Council to reach its
target of holding at least another five exercise and
nutrition programs per year in regional communities
throughout NSW. The program, called ENRICH,
is delivered by qualified dietitians and exercise
physiologists, and is tailored for cancer survivors,
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ANNUAL REPORT 2014
carers and family members to help improve wellbeing,
the effects of treatment and reduce the risk of cancer.
In Victoria, Cancer Council’s Wig Service offers those
undergoing treatment the chance to come in and be fitted
with a free wig. Money raised at Coles will enable another
200 wigs to be fitted for those undergoing cancer treatment.
Funds raised by Coles in Queensland help to fund a home
away from home for regional Queenslanders. Cancer
Council operates six lodges state-wide, helping to ease
the financial and emotional distress for cancer patients
who need to travel long distances from home to receive
treatment in the city. Coles funding provides over 100,000
bed nights to patients and carers each year, at no cost to
those undergoing treatment.
THANKS A
BUNCH!
WITH YOUR HELP, WE’VE RAISED OVER
$2.8M
FOR CANCER COUNCIL’S DAFFODIL DAY!
13
MILLION
DONATIONS
POINTS
$188,500
DONATED
CUSTOMER
109,300
TEAM MEMBER
FUNDRAISING
$163,500
shopping bags sold
88,000
lapel pins sold
ONE OF OUR TOP SELLERS!
FRESH DAFFODILS
118,000 16,500
bunches sold
pots sold
RAISED OVER
$1 MILLION
“A wig can give people affected
by cancer a greater sense of
confidence at a difficult time.”
Molly Colussa, Wig Service Coordinator at
Cancer Council Victoria.
25
ENGAGING
KIDS
We enable children to get active
on the field and in the garden.
BOOTS FOR KIDS
Boots for Kids was established to provide young Indigenous
Australians with improved access to football boots in many remote
Indigenous communities in northern Australia. Led by The Age
sports writer, Michael Gleeson, and former Collingwood footballer,
Leon Davis, Coles facilitates the collection of pre-loved football
boots to be redistributed to Indigenous communities.
Once boots have been donated in Coles stores, Linfox picks them up
and delivers them to community partner, Sunnyfield, a non-profit
organisation that employs people with disabilities, to clean, re-lace
and refresh the boots. The boots are then redistributed by Linfox,
along with pairs of socks, to thousands of Indigenous children living
in remote or disadvantaged communities across Australia.
Since the inception of the program in 2013, nearly 5,000 pre-loved
football boots have been donated and delivered, with Coles also
contributing 2,000 items of sporting equipment.
SCHOOL GARDENS
Students at Helena College Senior School in Perth have enjoyed
learning about the relationship between good food and health
through their garden club. With a $1000 Coles Junior Landcare
Garden Grant, the students and school community constructed
five raised garden beds and planted them with a host of fruits,
vegetables and herbs including chinese cabbage, curry leaf tree,
apricot tree, olive tree, mint, oregano, banana tree, coriander,
pak choy and broccoli.
In June, Rangeview Primary School in Mitcham, Victoria,
was presented with a $10,000 grant from Coles as part of the
Great State of Ag Initiative. The initiative was designed to teach
children where their food comes from. Rangeview Primary School
stood out from the crowd because of its innovative flora and fauna
program, planting an olive grove, an orchard with citrus and apples,
tomatoes, pumpkin and other varieties. As part of the program,
the children learn about food production, harvesting, cooking and
selling. The funds from Coles will help to expand the program and
develop another large area of their school grounds to plant berries.
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ANNUAL REPORT 2014
B
S
OOT
for kids
27
REDUCING
OUR IMPACT
Due to the nature of our business, we rely on energy, fuel and
water to operate. Our award-winning supermarket at Hallam
shows how we can reduce our impact.
Despite expanding our store network, our greenhouse
gas emissions decreased this year. This was achieved by
continuing to design our stores with energy efficient features
and diverting more food and other waste from landfill.
In 2009, Coles set out to develop the supermarket of the
future and this led to the opening of Hallam in Victoria in
April 2013.
After 12 months of operations, Hallam uses 20 per cent less
energy than an equivalent supermarket of its size. It uses
natural refrigerant, reducing our global warming impact.
At Hallam, the air-conditioning and refrigeration plants
work together, in a process called combined cooling.
The air-conditioning automatically adjusts based on
the number of people in the store, reducing our energy
even further.
Other features at Hallam include the use of cool room
panels to provide extra insulation in the ceiling, LED
lighting which has a higher energy efficiency rating than
a typical fluorescent light and the cooling plant uses water
from seven huge rainwater tanks underneath the store,
increasing the energy efficiency of the refrigeration system.
Coles Hallam – recognised at the 2014 Air Conditioning,
Refrigeration and Building Services Awards, winning the
Refrigeration Project Excellence Award. The store is now
one of 98 in our network using natural refrigerant.
RECYCLING IMPROVES OVER FIVE YEARS
200000
TONNES
150000
100000
50000
Disposed
Recycled
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ANNUAL REPORT 2014
2014
2013
2012
2011
2010
PACKAGING
COLES BRAND NATURAL
SPRING WATER
We converted our Coles Brand Natural
Spring Water bottles to recycled plastic
with the help of Visy Industries this year.
The recycled plastic saves natural resources,
energy and water, and has a significantly
lower carbon footprint than virgin plastic.
The new bottles are sent to Visy’s new,
world-leading facility where they are sorted,
ground down into small particles, sterilised
and cleaned and then remoulded to form a
brand new bottle. Based on current volumes,
we expect the move to recycled plastic to
help us avoid 1.9 million kilograms of virgin
plastic in the coming year.
PLANTIC MEAT TRAYS
This year, we adopted Plantic eco Plastic™ R for packaging
Coles Brand fresh beef, pork and lamb mince. The packs
combine the use of renewable corn and recyclable plastic
material to deliver a meat pack that is compatible with
kerbside recycling streams. The trays are now being used
for more than 50 million meat packs sold at Coles each year.
The new Plantic eco Plastic™ R product is a major step
forward in reducing food packaging waste and a great
example of Coles supporting innovative Australian
manufacturers.
Plantic’s technology is based on the use of non GM corn
starch and Coles is the first supermarket globally to adopt
the new packaging for all its fresh beef, pork and lamb
mince range.
The packaging has enormous environmental benefits,
as it is not only renewable and recyclable, it also takes
around half the energy required to produce compared
to traditional fossil fuel plastics.
IN-STORE RECYCLING
During the year, we improved our recycling rate for solid
waste from 63 per cent to 68 per cent and significantly
reduced our waste to landfill by 12.5 per cent or 11,830
tonnes. We achieved this by diverting surplus food to
people in need via SecondBite, recycling organic waste
and improving our recycling of plastic, shrink wrap,
waxed cardboard boxes, polystyrene boxes and oil.
We also now offer soft plastic packaging recycling for
customers at 500 stores nationally, recycling over four
tonnes a week through a partnership with RED Group.
The benefit of the program for Coles’ customers and the
environment is that we can recycle waste that cannot be
accepted by most council-run kerbside recycling services.
The waste is then turned into outdoor furniture for schools.
“Coles, as a business, has been so
supportive. They’ve actually pushed us
to do better and better, to become more
innovative, to work with them on an even
deeper level.
One piece of plastic can actually take
660 years to break down in landfills, so
everything that could be recycled through
the program is actually being saved from
that, which is really, really exciting.
The program has been received so well.
We get e-mails from Coles customers
every single day, telling us things like
their landfill bin is now down to nothing;
they only want to shop at Coles because
the program is available; they love that
a business is taking responsibility for the
plastic by giving them a way to recycle it.”
Liz Kasell, RED Group
ANNUAL REPORT 2014 | 29
BUILDING
GREAT CAREERS
Through a range of innovative personal and career development
programs, we support our people to be the best they can be.
OUR COMMUNITY HEROES
As part of our 100 year celebrations, we launched
Community Hero, a program that will recognise over 2000
amazing Coles team members who generously give their
personal time and knowledge to help their communities.
team and community at www.colescommunityhero.com.au.
The program has provided a fantastic opportunity for our
team members to learn about each other, share stories
and inspire even more support for their various causes.
Our team members will share in over $400,000 of
donations and prize money and 30,000 hours’ paid
volunteer time - the equivalent of 14 years in working days.
National winners for each business were selected
by a panel of judges, including Coles Directors and
guest judges from charitable groups such as Redkite,
Cathy Freeman Foundation, Salvation Army, SecondBite
and Cancer Council. To date, four national winners have
been announced with two more to come by the end
of November.
Our Community Heroes support over 1000 diverse
community groups across Australia and internationally.
Their stories have been shared with our customers,
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ANNUAL REPORT 2014
COLES SUPERMARKETS
COLES EXPRESS
PATRICIA ANDERSON
COLES MIAMI, QLD
JULIE MCCARRON
COLES EXPRESS DONCASTER, VIC
Over the past 11 years, Patricia Anderson and her family have
opened up their home to more than 50 children needing foster
care in their community. Patricia has also been involved in
her children’s school P&C for 13 years where she has set up a
breakfast club and obtained a $60,000 funding grant to set
up a kitchen garden program.
Six years ago, Julie’s family began fostering children, offering a
safe haven for troubled teens, while at the same time helping
their own children grow into caring and compassionate adults.
Julie has now fostered about 20 teenagers and for the last few
years has been taking on the role as a single mother. Julie plans to
donate $20,000 to Waverley Emergency Adolescent Care (WEAC).
COLES LIQUOR
COLES STORE SUPPORT
MICHAEL READ
GLENDALE LIQUORLAND, NSW
MICK NEWMAN
STORE SUPPORT TOORONGA, VIC
Michael is a dedicated volunteer and fundraiser for several
charities, including CanTeen and Daffodil Day (Cancer Council),
as well as a passionate supporter of his local soccer club,
providing opportunities for junior and senior players at all levels.
He has helped raise over $10,000 and received two nominations
for Australian of the Year in recognition of his efforts.
Mick has spent the past three years providing kids from all
different backgrounds and abilities with the opportunity to play
and learn about football. He has also supported his local RSL
with fundraising and social activities for eight years.
ANNUAL REPORT 2014 | 31
GAINING A UNIQUE EXPERIENCE IN THE
WEST KIMBERLEYS
In June 2014, Sonya Rand, Coles Ethical Sourcing Manager,
began a six-week Jawun experience with the Yawuru
people, the native title holders of Broome in Western
Australia. This provided a unique experience to hear the
history of Indigenous life in this region retold by elders,
youth, missionaries, government agencies and NGOs.
This is Sonya’s story:
“Coming from living in urban environments all my life,
the little I knew about Aboriginal Australians came mainly
from negative media and stereotypes. I knew these views
could only possibly offer one side of a complicated story,
so I wanted to go and learn for myself.
Along with a host of secondees from various other
organisations, there was another colleague from
Liquorland up here with me, so we did a good job to
ensure that everyone shopped at the right supermarket.
My first foray into Coles in Broome revealed to me that
sliced bread is stored in the freezer. It appears that
ambient sliced bread is only a city thing...
My secondment involved working for an Indigenous
organisation named Nyamba Buru Yawuru.
Yawuru people are the traditional owners of the lands
and waters in and around Broome. They eventually won
a long and hard battle with the Australian Government
to achieve The Yawuru Native Title Claim in 2008.
The Yawuru agreement is the biggest native title outcome
in Australian history with a total value of $196 million.
Nyamba Buru Yawuru was set up to ensure that capacity
building for Yawuru people, economic development,
cultural preservation, social housing and management
of the conservation estate provides lasting benefits.
I was working on projects to bring the cultural economy
to life for the Yawuru people, so they can take advantage
of the massive influx of tourists into Broome during the
annual ‘dry season’. There is significant potential for
growing Yawuru people’s economic participation in areas
such as land and sea management, cultural services,
cultural tourism, cultural induction, Welcome to Country
ceremonies and traditional knowledge concerning
commercial use of Indigenous plants.
I got to see a lot of the work that the organisation does in
the community, including language outreach programs,
day care centres, community programs for elderly and
disabled Yawuru people and the drug and alcohol
rehabilitation unit. My time at Broome coincided with
NAIDOC week so it was very busy with activities and I
participated in the official Indigenous march through town.
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ANNUAL REPORT 2014
There were an incredible number of Indigenous run and
led organisations who all marched proudly.
There were also plenty of new experiences along the way,
such as catching mud crabs, rock fishing, 4WD adventures
and learning the Yawuru language. We were privileged to
gain access to fishing, camping and swimming locations of
special significance to the local Indigenous communities.
Sampling dugong and turtle doesn’t happen every day
either!
It was great to be out of my comfort zone, learning and
experiencing new things and exploring different ways to
look at things. It has initiated a lot of great conversations
with curious colleagues and I hope they will go on to find
out more for themselves. It would be great to explore the
benefits of Indigenous Australians coming to Coles and
assisting us with specific projects and business initiatives
in the future.”
ABOUT JAWUN
Wesfarmers and its divisions have been working with
Jawun since 2009, addressing a commitment under
the Wesfarmers Reconciliation Action Plan to support
Aboriginal organisations through the provision of
skilled secondees.
Secondees are assigned to particular projects
depending on the needs of individual organisations.
Through these secondments, Jawun and corporate
Australia support Indigenous leadership to deliver
their own strategies and vision and to build the
capabilities of Indigenous people and organisations.
“It was great to be out of my
comfort zone, learning and
experiencing new things.”
ANNUAL REPORT 2014 | 33
SUPPORTING WORKING FAMILIES
Over the past year, we responded to feedback from our
team members about how we can provide better support
and flexibility at work.
We now have a range of programs to assist working
families, including Paid Parental Leave, Coles Child Care
program, Coles Kids at Work program and the
Stay In Touch program.
Coles Paid Parental Leave is now available to permanent
full-time or part-time team members with two years’
continuous service and who take eight weeks leave
to be the primary carer of their child.
For those heading off on parental leave, the Stay in Touch
program delivers information about parenting, activity
suggestions, lifestyle advice and company news so that
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ANNUAL REPORT 2014
team members can keep up to date with any key changes
at work and have news delivered by email.
And, in order to assist as many team members as possible
across Australia with childcare requirements on their
return to work, Coles provides a childcare finding service
through online provider, CareforKids. More than 3,500 team
members visited the CareforKids website during the year.
In partnership with Camp Australia, the Coles Kids at
Work program operates at our Store Support Centre in
Melbourne, which is our largest workplace, and provides
a discount for team members accessing Camp Australia’s
holiday programs operating around the country. During
the year, approximately 1,100 children were registered for
the program at Coles’ Store Support Centre.
We will treble the
number of Indigenous
team members working
with us by 2020. This year
126 team members joined
Coles through our
First Steps Indigenous
employment program.
TAKING THE FIRST STEP
One of our newest Aboriginal and Torres Strait Islander
team members, Brett Morris, from Willmott, in western
Sydney, had been looking for work for some time before
he found an opportunity at Coles Ropes Crossing (NSW)
through Coles First Steps program.
Brett officially left school at the age of 14 and was
unemployed for 16 years before completing a TAFE course.
Finding a role at Coles gave him the opportunity to turn
his life around.
In the short time he’s been with us, Brett has worked in Dairy
and now Grocery and his team members and customers
have presented him with a Caring Passionately Award.
So inspiring is his story that he was named as the 2014
Achiever of the Year at the National Employment Awards
for Excellence for transforming his life and participating
in the workforce.
Brett now has his sights set on becoming store manager,
and recommends the First Steps program to “pretty much
every Indigenous person” he knows.
The difference a job can make:
“I once had a team member tell me a story
about how much employment at Coles had
changed her family’s life whereby she was
finally able to afford to take her children
to the Show for the first time and how their
faces lit up when they saw the animals.
She also told me that her pantry was always
full of food and she could now afford
treats for her kids’ lunches. This took me
aback as it’s something that I had always
taken for granted and was fortunate
enough to never have to worry about.
Every time I place someone in employment,
I think of this team member.”
Karli Sutton, Indigenous Employment Co-ordinator,
Coles QLD
ANNUAL REPORT 2014 | 35
CELEBRATING
100 YEARS
This year has been a very special one for Coles because it’s 100 years
since we first opened our doors to start serving Australian families.
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ANNUAL REPORT 2014
It all began in 1914, when GJ Coles opened the first Coles
variety store on April 9 in Melbourne. With a slogan of
‘Nothing over 1/-’ (a shilling), the store opened with a
promise to provide quality and value to Australian families.
With over 2,300 retail outlets and 99,000 team members,
we’re a bit bigger than we were back then, but we’re proud
to say that 100 years later we’re still 100% Australian
owned and we still hold true to GJ’s original values.
To commemorate our centenary, every team member
received a special gift detailing our proud and fascinating
history, comprising lapel pin, celebration book and DVD.
During the year, regular issues of Coles Magazine brought
our history to life decade by decade, providing insights into
the evolution of the Australian way of life.
We held events at the Coles Fountain in Melbourne
and at the National Portrait Gallery in Canberra.
Our team members and customers joined our
celebrations, as did descendants of the Coles family
and other well respected Australians.
“The principles the business goes on today
are about producing innovative, good
quality products - the essentials
of life...I’m so pleased that
we have an Australian-owned
company that will do that
backed by Wesfarmers.”
GIVING BACK TO
THE COMMUNITY
AT ST JAMES
Coles contributed $110,000 towards the restoration
of the St James community hall to help continue the
legacy of GJ and the Coles family in St James.
The small community of St James in country Victoria
has a special place in our history, as the home of our
founder, GJ Coles, for over 10 years.
It was in St James that GJ first ventured into retailing
in 1910. At 24 years of age, GJ purchased the local store
from his father, George Coles, for 4,500 pounds and sold
everything from farming needs to household goods.
GJ later sold the store in 1913 and moved to Melbourne
in 1914 where he opened the first Coles variety store
in Collingwood.
In front of the refurbished hall at St James. Left to right:
Moira Mayor - Peter Mansfield, St James Hall Committee
President - Mary Panter, Project Coordinator - Kathy Beattie,
and the Member for Murray Valley - Tim McCurdy.
Photo courtesy of The Border Mail
Donald Coles (GJ Coles’ grandson)
SUPPORTING OUR
AUSSIE HEROES
Sharing our centenary with the First World War and
coming just one year before the nation remembers
Australians landing at Gallipoli made our year even more
special. So, to salute our Australian heroes and honour
the founders of Coles who fought in the First World War,
we pledged to raise $5 million for the Australian Defence
Force Assistance Trust.
The Australian Defence
Force Assistance Trust
provides essential financial,
medical, educational,
re-training, and special
needs assistance to
Diggers past and present
and their families.
proudly supporTs
ANNUAL REPORT 2014 | 37
ANNUAL REPORT 2014
408584
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