Coles and Woolworths force Metcash to double marketing

The escalating supermarket war between Coles and Woolworths has seen grocery wholesaler Metcash double its marketing spend to keep up.

Speaking at Metcash's annual general meeting yesterday, Metcash chief executive Andrew Reitzer said the company has been forced to increase its spend and exposure as a result of the supermarket wars.

He also said the increase was aimed in maintaining the Metcash customer base, rather than increasing it.

According to AAP, Reitzer said: "We've had to increase our marketing spend and our marketing exposure.

"It just means to hang on to what you've got or to grow as you would expect to grow you're spending twice as much on marketing."

The supermarket war between Coles and Woolworths has been escalating for several months.

Both companies have entered into a price war, while launching major advertising initiatives promoting their brand, private label offerings and loyalty programs.

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