Ergo clinches multimillion-dollar Coles print contract

Ergo Asia has cemented its contract with one of the country's biggest spenders on print, Coles, whose annual marketing print budget tops $50 million.

The deal, which has been brought online over the course of this year, is a multi-year arrangement that currently comprises the 'supermarket marketing' component of the retail group's print requirements.

This work includes point-of-sale material and warehousing and is believed to make up over 50% of the total $50 million spend, with scope to grow over time.

Coles previously had a print management contract with Blue Star IQ, which the private equity-based group took over when it acquired McMillan Print Group in 2007.

The Coles print management contract was worth over $15m at the time of the takeover, according to former owner Bob McMillan.

According to Coles, the joint Ergo-Coles team has now deployed a print management centre at Coles headquarters in Tooronga, Melbourne, underpinned by Ergo's technology and staffed by its print production specialists. 

Ergo account director Guy Watson said: “The model integrates innovative and efficient printers into the supply chain, with high involvement during the product development cycle. 

"We will continue to promote suppliers that can bring new technology, processes or innovation to Coles.”

Coles and Ergo said printers that had historically serviced the retailer had been given "first opportunity to supply". 

Ergo employs 150 staff across Australia and Asia, with headquarters in Sydney and offices and customers in China, India, Indonesia, Thailand and New Zealand.