Woolworths is reportedly repackaging more than 900 of its Homebrand products with the "Essentials" own-brand label to counter customer perceptions about their quality.
The Homebrand range has annual sales of about $1.4 billion and more than 950 product lines, but consumers perceive the quality of Homebrand products to be inferior to those sold at other chains such as Coles and Aldi, according to Fairfax Media.
Woolworths' chief executive Brad Banducci reportedly said last year that the Homebrand logo had a "perception problem".
"The issue we've got with Aldi is providing the same value experience in our store as [customers] would have in an Aldi," he said at the time.
"This requires us to rethink and re-engineer some of our entry-level products."
Homebrand's prices are generally as cheap or cheaper than similar entry-level private label goods at Aldi and Coles, so the main consumer perception issue revolves around the product branding and packaging, according to experts.
Category by category, Homebrand products will be repackaged and sold under the Essentials brand, starting with honey.
