Business

Milk and coffee face Coles and Woolworths price checks

The regulator will examine margins across more than 1,000 products under the excessive-pricing ban, but selection does not establish wrongdoing.

A shopper in a red coat, seen from behind, chooses vegetables beside piles of potatoes in a supermarket

Digitally illustrated image.

By Bushletter Newsroom · 14 November 2026

TLDR

The ACCC has selected potatoes, limes, bone-in chicken, fresh milk, bread rolls, chocolate, coffee and kitchen sponges for closer margin scrutiny under the supermarkets excessive-pricing regime. The eight groups cover more than 1,000 products at Coles and Woolworths, with a first monitoring report due in early 2027.

Eight groups, more than 1,000 products

The Australian Competition and Consumer Commission named eight initial focus product groups on 13 November 2026 for closer retail-margin examination under the supermarkets excessive-pricing regime: potatoes, limes, bone-in chicken, unflavoured fresh milk, bread rolls, chocolate blocks and snack bars, coffee, and kitchen sponges and scourers.^[1]

The eight groups account for more than 1,000 items sold across Coles and Woolworths.^[1] The ACCC selected them using consumer and supplier reports, product essentiality, prices in 2024-25 and 2025-26, margins and sales revenue, with all of those considerations assessed across the eight groups as part of the regulator's process for its initial focus list.^[1]

What the prohibition requires

The excessive-pricing prohibition took effect on 1 July 2026 and applies to supermarket retailers with more than $30 billion in covered annual revenue, currently only Coles and Woolworths.^[2]

Under the Food and Grocery Code, excessive pricing occurs when a very large retailer's price is significantly excessive compared with its cost of supply plus a reasonable margin, judged across all the circumstances rather than against a fixed numerical threshold.^[3]^[3]

The Albanese government set maximum penalties for breaches at the greater of $10 million, three times the benefit obtained, or 10 per cent of turnover over the preceding 12 months where the benefit cannot be determined.^[4]

What focus status does and does not mean

ACCC Deputy Chair Mick Keogh said inclusion on the list carried no presumption of wrongdoing. "It's important to note that just because a product is on our focus list, it doesn't mean that we currently consider supermarkets are obtaining unreasonable margins on these products. It signals that we think the pricing of the product warrants closer examination."^[1]

Keogh said the regulator's reach extends well beyond the announced list. "Our compliance monitoring is not limited to the announced focus products. We will continue to obtain and analyse margin and pricing information for all grocery products available at Coles and Woolworths, alongside reports from consumers and suppliers."^[1]

First report and ongoing surveillance

The ACCC's first monitoring report will be published in early 2027, covering focus-product prices, costs and margins, with pre-prohibition data serving as the baseline for future comparisons.^[1]

Keogh said the work was directly relevant to household budgets. "This work matters to Australian consumers who are acutely aware of price increases in their supermarket shop."^[1] The ACCC said it may name further focus products during 2027 as analysis continues.

KEY TAKEAWAYS

01More than 1,000 individual products at Coles and Woolworths fall within the eight named focus groups.

02The excessive-pricing prohibition has applied since 1 July 2026 to retailers with more than $30 billion in annual covered revenue.

03Penalties for a proven breach reach $10 million, three times the benefit obtained, or 10 per cent of annual turnover.

04Focus status signals closer examination, not a finding that unreasonable margins are already occurring.

05The first monitoring report, using pre-prohibition data as a baseline, is due in early 2027.

SOURCES & CITATIONS

FREQUENTLY ASKED QUESTIONS

What does it mean for a product to be on the ACCC's focus list?

Focus status means the ACCC considers the product's pricing warrants closer examination. It is not a finding that unreasonable margins are already occurring, according to ACCC Deputy Chair Mick Keogh.

Which supermarkets does the excessive-pricing prohibition cover?

The prohibition applies to supermarket retailers with more than $30 billion in annual covered revenue. The ACCC says Coles and Woolworths are currently the only retailers captured.

What penalties apply if a breach is proven?

The maximum penalty is the greater of $10 million, three times the benefit obtained, or 10 per cent of annual turnover over the preceding 12 months where the benefit cannot be determined.

When will the first monitoring report be released?

The ACCC expects to publish its first monitoring report in early 2027. It will cover prices, costs and margins across the eight focus product groups, using pre-prohibition data as a baseline.