Trading Partner News - Woolworths wowlink

Trading Partner News
Published by Woolworths Supermarkets to support our Trade Partners www.woolworths.com.au/vendors
In this issue >
Woolworths Supplier of the Year
01 Introduction 02 Fresh 03 Corporate Responsibility
04 Logistics 05 Longlife 06 Supermarket Support
07 Marketing 08 Environment 09 Community
February 2009
Issue
30
Woolworths
Supplier of the Year

01 A
Introduction
word from Greg Foran
Welcome to the first edition of the Trade Partner Newsletter for the New Year and the first edition since I formally moved into the
position of Director of Supermarkets, Liquor and Petrol.
Firstly, I would like to acknowledge the leadership and retail genius of my predecessor – Naum Onikul. I would like to thank him
for his 21 years with Woolworths and more than 40 years in the Australian retail sector. Naum has made an enormous contribution
to our company and the success of our people.
As we start 2009, I know we have the best people in grocery retailing who are talented, dedicated, hard-working and committed
to getting it right and delivering value for our customers. While our first half sales remained strong and industry-leading, we all
know in retailing, the job is never done.
This year, we will continue to build on the foundations which have made our company one that is admired by its peers. We will
continue to become efficient in the way we run our business and most importantly, we will continue to innovate.
As ‘the fresh food people’, we will continue to be focussed on delivering freshness and value to our customers. Australia’s
new symbol for fresh food, our new Woolworths logo, will be rolled out extensively in 2009. The new brand, which was launched
in September 2008, is now in our stores and catalogues and on our trucks.
In our supermarkets, we will carry on with the rollout of our 2010 format which continues to be very well received by our customers.
On our supermarket shelves, we will focus on ensuring we are delivering over 13 million customers each day the
best selection of products and best value in Australia.
We will work actively with you, our partners, to develop and position your products to ensure we continually meet the needs
of our customers, especially in light of changing economic conditions.
The entire Woolworths team is committed to continuous improvement, achieving best practice and delivering value for our
customers. By working this way, we will not stand still, we will never take our customers for granted, and together we will write
the best chapters of the Woolworths story in the years ahead.
I hope to meet with you in coming months as I travel around our stores throughout Australia. In the interim, if you would like
to make contact with me or provide feedback on any part of our business please email me (GForan@woolworths.com.au).
Greg Foran
Director – Supermarkets, Liquor and Petrol.
Woolworths
Backing
our
Farmers 09
Shop with
us on Friday
20th February
100% of profits from all Woolworths Supermarkets
around Australia on Friday 20/02/09 will go to the Country
Womens Association to benefit communities impacted by
drought. CWAA, 265 Greens Creek Road, East Sassafras
TAS 7307, phone 1800 237 876.
the road to recovery

02 Seafood
Fresh
- The right mix
A national mix specification was developed.
When it comes to retailing, there are
often icon lines ranged within the
business that have the potential to
make a defining statement about
Woolworths – lifting our image and
reputation in a particular category. We
identified this was the case with our
seafood marinara mix.
After researching the seafood range,
marinara mix was identified as a high
awareness line for seafood buyers but it
was under-performing both in sales and
profit. Further research showed that the
cause of this was simple things such as
its presentation and value for money.
The ingredients that made up this
mix needed to change! But which
ingredients
We even found that every state and
vendor had a different marinara recipe
mix. A national specification needed
to be formulated. It needed to be a
mix of top quality ingredients but
represent outstanding value selling at a
competitive market price.
Woolworths needed to work closely
with our Trade Partners in order to
turn marinara mix into an icon line for
Woolworths customers.
The first thing worked on was to
ensure that the right ingredients were
included. We kept it simple by selecting
four seafood lines that would improve
the quality of the marinara mix, and
creating a new ingredient list that was
to become the national specification,
providing all stores with a consistent
customer offer.
Working in co-operation with our
suppliers we were able to achieve very
competitive costs through modifying
the way this product was being
prepared, packaged and delivered to
stores. The presentation standards were
carefully and simply conveyed to the
operational teams by putting together
a group of step by step illustrated
photos and instructions highlighting
the correct preparation, display and
merchandising methods.
The next step was to ‘launch’ the
Woolworths marinara mix to the
marketplace.
We arranged to advertise and promote
this line in our brochure at prices not
seen in the market place for over 10
years! While we set ourselves high
expectations of a sales success the results
were several times over best estimates.
Today, the success of our seafood marinara
business continues to provide Woolworths
and our Trade Partners with exceptional
growth, and our customers excellent value.
This is just one example of many things
that can be achieved with the support
of our Trade Partners. Whether it’s your
idea or ours, we should look at every
opportunity to grow business together.
The final mix garnished in the display case adds to the product appeal.
Trading Partner News 3

Feature
Supplier of the Year 2008
On Friday 5 December 2008, Nestle
Australia Limited was awarded the
Woolworths Supplier of the Year title
at the eighth annual awards ceremony
in Sydney.
Nestle Sales Director Mark Mackaness
accepted the prestigious award saying
“we challenged ourselves to reach this”.
Nestle are the first Trade Partner in the
Supplier of the Year history to be awarded
the honour twice. Previously, Nestle
were named overall winner in 2004.
The overall award was preceded by
Nestle winning two other categories:
the Grocery over $50 million category
and New Product Launch of the Year for
Uncle Tobys Plus Antioxidant Cereal.
In addressing the audience of 550 Trade
Partners and Woolworths managers,
Woolworths CEO, Michael Luscombe,
encapsulated Nestle’s success by saying
“Nestle are one of the most professional
businesses we have ever dealt with.”
Michael also looked towards Woolworths’
85th birthday, reflecting on the company’s
survival through a world war, depressions,
recessions and hard times – and how
the company will again survive and
prosper in the current climate.
The Supplier of the Year awards
night also provided a fitting platform
for a tribute to retiring Director of
Supermarkets, Liquor and Petrol, Naum
Onikul, who, like many in the room, was
described as a self-made success. Naum’s
ever-humble attitude was “our success is
your success”.
Produce Supplier of the Year winner
Harvest FreshCuts are a self-made
success story and long-term
Woolworths Trade Partner. Harvest
FreshCuts CFO Robin Poynton described
their win as having “waited 35 years
for this”. His sentiment was echoed by
Warren Payne, Sales and Marketing
Manager of Meat Supplier of the Year
winner Cargill Beef Australia. “We will
take this back to the team and lift the
bar. I have worked with Woolworths for
16 years and this is the best night.”
Congratulations to all the category
winners and nominees.
$100,000 awarded for sustainable farming
Fresh Produce Trade Partner Moraitis Pty Ltd identified that due to difficulties associated with climate change there was an
opportunity to improve sustainability in the area of production. This initiative was awarded the second annual $100,000 Fresh
Food Grant. This Grant will go towards introducing ‘Biochar’ - which will reduce farm inputs such as fertilizers and water, while
at the same time sequestering and locking away carbon from the atmosphere. Moraitis have continually driven innovation in
farming methods and produce variety in the 40 years they have been trading with Woolworths.
4 Trading Partner News

Our 2008 Trade Partners Program Winners
Deli/Seafood
Supplier of the Year
Produce
Supplier of the Year
Meat
Supplier of the Year
Bakery
Supplier of the Year
Perishables (up to $50m)
Supplier of the Year
Perishables (over $50m)
Supplier of the Year
Grocery (up to $50m)
Supplier of the Year
Grocery (over $50m)
Supplier of the Year
General Merchandise
(incl Front of Store)
Supplier of the Year
Liquor (incl BWS)
Supplier of the Year
Private Label
Supplier of the Year
Store Merchandising
Supplier of the Year
Fresh New Product
Launch of the Year
Longlife New Product
Launch of the Year
Register for the 2009 Supplier of the Year program
The Supplier of the Year is a continuous business improvement program run over 12 months measuring the performance of
companies in areas including Buying, Logistics, Store Merchandising, Quality and Finance. Suppliers access scores quarterly, which
act as a great benchmarking tool to track progress during the year. It is used by switched on Trade Partners large and small to
identify trading opportunities. To be part of the 2009 Supplier of the Year program, register your company at www.wowlink.com.au
during the month of February. Registrations close 27 February 2009.
Trading Partner News 5

6 Trading Partner News

03 Ethical
Corporate Responsibility
sourcing policy
Woolworths Limited and its subsidiary
companies, including Woolworths and
Safeway Supermarkets, Big W, Progressive
Enterprises Limited (NZ), Dick Smith
Wholesale and DSE (NZ) Limited to name
a few, has introduced an important
change to our terms of supply with the
introduction of our Ethical Sourcing Policy.
The Policy document has been
developed to ensure that the products
supplied to Woolworths are produced in
a manner that upholds human rights, fair
working conditions and environmental
protection. As Ethical Sourcing applies
to any product or service supplied to us,
irrespective of whether a Trade Partner
sources or manufactures that product
locally, overseas or in any combination,
some level of inquiry by us will be required.
Woolworths has prioritised certain
categories of suppliers and products
which may result in a greater level of
inquiry to assure us of compliance.
Further communication on this level of
inquiry will be issued to those relevant
suppliers at a later stage.
Woolworths fully appreciates and it
is clearly stated in our Policy, that any
business change may require a transition
period to meet the Policy standard.
Whilst our Policy will be effective
immediately, we will work in partnership
with our Trade Partners to help you
achieve compliance.
If you have any questions on this Policy,
please email:
consumergoodsquality@woolworths.com.au
The Policy document can be viewed on the Vendor Website: www.woolworths.com.au/Vendors/vendorguide/DoingBusinessWith/ethical.asp
04 Updated
Logistics
barcode and packaging safety
Woolworths is continually improving the
efficiency and safety with which products
move through its Logistics network.
Quarterly updates to the Barcode and
Packaging Specification Document reflect
learnings we gain operationally. There are
a number of important changes in the
latest revision, and the Vendor Capability
team will be working with Trade Partners
to ensure that their packaging complies
with the updated specification.
Updated safety requirements for Vendor
Packs (VPs) include –
• Gross Weight – must appear on a
minimum of two sides (it is acceptable
to round up to the nearest 250g).
• Caution Lift or Heavy Lift symbology –
must appear on six sides (applicable to
VPs over 10kg).
• Staples – are excluded from the
Woolworths Limited logistics network
and must not be used to secure
Vendor Packs.
8 Trading Partner News
Important existing requirements to ensure
safe pallet movements include –
• Use of good condition pallets meeting
Australian Standards.
• VPs must not over-hang the pallet.
• Stretch wrap ‘tails’ or ’dags’ must not
hang off pallets or become loose
during transit.
• If using cold-water glue, the top layer
must be secured with string or plastic.
Hot-melt glue must not be used.
• To remove a carton from the pallet, a
person must not need to exert more
than 20kg of force.
We appreciate the support we get from
Trade Partners and logistics providers
in the drive to improve safety in the
movement of stock throughout the
Logistics network and at Woolworths
stores.
The Barcode and Packaging Specification
Document (Vendors Edition Version
9) is available for download from the
Woolworths Vendor Website: www.
woolworths.com.au/Vendors/logistics/
VendorCapability/packaging/
Should you have any queries regarding
the specification document,
Vendor Capability can be contacted
on 02 8885 3361 or email:
vendorcapability@woolworths.com.au
Visit the Vendor Website to keep updated with
barcode and packaging specifications.

05 Grab
Longlife
groceries and win promo
In September 2008 the Grocery, Perishables and
General Merchandise teams ran the ‘Grab Your
Groceries & WIN’ consumer promotion. Not only
did Woolworths and our participating Trade
Partners experience solid growth, we also created
great excitement for our customers in store.
One of our lucky customers receiving the keys to their new car.
The event was heavily supported in brochure,
homeshop, Fresh and Australian Good Taste
magazines and by a Point Of Sales package worth
over $250,000. The redemption rate increased over
20% from the previous event Woolworths executed
in February 2008. This event was one of the largest
redemption rates for any national retail consumer
promotion.
Woolworths wish to thank the supporting Trade
Partners for their assistance in creating a well
received event.
Thank you to our supporting Trade Partners.
Grab your groceries
and win!
4x
$4,000 LG
Home
Entertainment
Packages
4x
Ford
Mondeo
Valued at up
to $29,990 each
5x
$5,000
cash
80x
$250 WISH Gift Cards
200x
$100 WISH Gift Cards
Over $200,000 in prizes
Spend $40 or more in one shop from our grocery, frozen and dairy aisles and you could WIN!
Promotion commences at 12.01am AEDST on 08/09/08 and closes 5pm AEDST 05/10/08.
Authorised under NSW Permit No. LTPS/08 06844 VIC Permit No. 08/3085 ACT Permit No. TP08/02807 and SA Permit No. T08/2753.
Trading Partner News 9

06 New
Supermarket Support
wowlink launches!
Woolworths wowlink portal is currently
being launched.
The improved wowlink portal is
designed to assist all Woolworths Trade
Partners through better communication
and updated information about their
business with Woolworths. This system
provides more reports and better access
to applications for all Trade Partners.
wowlink provides easy-to-access
information for your business including:
• Overall Supply Chain performance.
• Service Levels.
• Days of Supply.
• Promotional activity.
• Various business applications
including Transport Management
System (TMS) and the Product
Withdrawal / Recall Management
(PWRM) application.
The new wowlink will replace the existing
Vendor Website (www.woolworths.
com.au/vendors). All information will
migrate to the new wowlink portal. Trade
Partners now have a one stop destination
to access information required in your
business when working with Woolworths.
CURRENT WOWLINK USERS
For companies already using WOWLink,
migration to the new wowlink will occur
over the coming months and further
communication will be sent to you.
WANT TO SIGN-UP
If wowlink is not a tool your company
currently uses and you would like to
come onboard, new Trade Partners
will be able to register from May 2009.
Once active on the new wowlink,
Trade Partners will have access to
new features such as:
• 38 reports including brand new
Produce and Indent Reports.
• 10 User Guides, online training
module and online Help portlet.
• Single sign on for TMS and PWRM.
• Self service registration and
activation process.
• Supplier of the Year Results.
For further information regarding
the new wowlink, please call
(02) 8885 2871 or email
wowlink_admin@woolworths.com.au
Access the Vendor Website and your reports from one portal.
www.woolworths.com.au/vendors
www.wowlink.com.au
10 Trading Partner News

07 Brand
Marketing
ID update
‘Australia’s new symbol for fresh foods’
was the message on the front page
of the 12 January 2009 catalogue,
which marked the launch of the new
Woolworths logo, in supermarket media
activity on a national basis.
The Woolworths icon was featured
prominently on the catalogue, (which is
delivered to over seven million homes
every week), as well as on supporting
in-store point of sale, to reinforce our
Fresh Food People position.
In addition to the media activity,
customers would have seen the icon
appearing in Woolworths Fresh Magazine,
on staff badges in all 785 supermarkets
and on many trucks on the road. Over
the coming months more and more
elements will have their look updated.
By July this year, there will be over
120 supermarkets with the new look
Woolworths signage. This includes
supermarkets in Victoria which will have
rebranded from Safeway to Woolworths.
Safeway branding will continue in
Victoria for a period of time with some
elements, like the Victorian catalogue,
being dual branded. However any ‘Only
Available At’ packaging will need to
have references to Safeway removed.
Guidelines for this change will be
available soon. Please liaise with your
Business Manager.
The ‘Logo Usage Guidelines’ document
for the new Woolworths logo is available
on the Vendors Website as are the
logos for you to download and use in
authorised marketing material.
Australia’s new symbol
for fresh food
Trading Partner News 11

08 Sustainability
Environment
targets
As doubts creep in during tightening
economic conditions, now is the time
for astute businesses to keep improving
sustainability. The basics of sustainability
include:
• the efficient use of resources.
• reducing waste.
If you manage to use less energy or water
and produce less waste that will reduce
the cost of doing business.
Woolworths is maintaining its focus on
the targets and commitments listed
in our Sustainability Strategy, and late
last year we reported on our progress
against these targets in our Corporate
Responsibility Report 2008.
During the 2007 – 2008 reporting
period we had an increase in our carbon
emissions. This increase was expected as
our business continued to expand, and
while the benefits of new technologies
and practices take effect. Progress is
evident through the positive results
at our Rouse Hill ‘Green Store’, where
the initiatives instore were modelled
to reduce carbon emissions per square
metre by 25%, and during the first year of
operation the reduction was measured
at 36%.
A significant reduction of water use in
our South East Queensland stores is also
estimated, due to the Water Wise Project
of installing flow restrictors, ultra-rinse
guns and adjusting toilet flush volumes.
For the 100 stores initially covered in
this project we have estimated a saving
of almost 44 million litres of water (we
need to estimate as only 20% of our
stores have individual water meters). The
success of this program prompted a roll
out to the remaining 664 supermarkets
and 148 Big W stores in Australia.
We also managed to increase our
recycling volumes and diversion of
materials from landfill with almost
166,000 tonnes of cardboard recycled (up
from 147,000 tonnes the previous year).
Further reduction of cardboard carton
usage is achieved by the use of produce
crates, eliminating 26 million cartons per
year from our system.
Woolworths are continuing to trial new
technologies and educate our staff so
that we continue to make progress
towards our targets.
09 Fresh
Community
Food Kids Hospital Appeal
Lisa Walton from SPC Ardmona presenting a donation
In Spring 2008 the call went out to
Trade Partners to help give sick kids
a fresh future through the annual
Woolworths Fresh Food Kids Hospital
Appeal. Woolworths staff work together
to raise funds for equipment, research
and facilities for the Children’s Hospitals
around Australia.
The team in Western Australia set
their sights on raising $700,000 to
donate to the Palliative Care Service
within Princess Margaret Hospital and
the Children’s Leukaemia and Cancer
Research Foundation. In order to make
this possible, stores held a variety of
fundraisers to get the local community
involved – such as Family Fun Race
Night at Cannington Greyhounds.
Woolworths’ dedicated Trade Partners
kindly donated funds and merchandise
cheque to Adam Quinlan, WA Trade Support Manager.
for such events as the ones organised
in WA. We thank all supporters and look
forward to your support in 2009.
Trading Partner News published by Woolworths Limited ACN 000 014 675
1 Woolworths Way, Bella Vista NSW 2153.
If you would like to make a contribution please contact
Scott Eames, phone: 02 8885 2856 fax: 02 8888 2856 email: seames@woolworths.com.au
www.woolworths.com.au/vendors