Coles Backs the Next Generation of Food Innovation

Australian supermarket giant Coles Group has awarded more than AUD$3.5 million to eight emerging food and agriculture businesses, signalling where one of the region's largest retailers sees future growth opportunities.

The latest round of the Coles Nurture Fund supports projects ranging from native freshwater prawn farming and kiwi berry breeding to AI-powered vegetable grading, autonomous tractors and on-farm food processing.

Since launching in 2015, the fund has distributed more than AUD$43 million across 127 Australian businesses, with a strong emphasis on sustainability, waste reduction, regional development and food system resilience.

Among the most interesting recipients is Tallogum Berries, which received AUD$495,000 to expand its next-generation kiwi berry breeding programme. Unlike traditional kiwifruit, kiwi berries are small, smooth-skinned fruits that can be eaten whole and are increasingly being positioned as a convenient snack fruit.

The project aims to improve genetics, increase production consistency and extend the supply season. While still a niche category, the strategy mirrors the growth path seen in blueberries over the past decade.

The development raises an intriguing question for New Zealand's Zespri. Although kiwi berries are a different crop from conventional kiwifruit, both occupy similar consumer territory in the premium fruit category. If Australian breeding programmes succeed in extending availability and increasing consumer awareness, kiwi berries could emerge as a complementary — and potentially competitive — category alongside traditional kiwifruit.

Elsewhere, the grants reveal several broader food trends. Indigenous-led aquaculture projects are gaining momentum, with the Hope Vale Foundation receiving AUD$500,000 to commercialise native giant freshwater prawns (Cherabin). The initiative combines aquaculture and agriculture in a circular production system where pond water is reused for crop irrigation.

Food waste reduction also featured strongly. Queensland businesses received funding to convert surplus ginger, turmeric and other produce into shelf-stable powders and value-added ingredients, helping farmers capture more value from crops that would otherwise be discarded.

Technology was another dominant theme. AI zucchini grading systems, autonomous tractors and automated irrigation infrastructure all point toward a future where labour shortages and productivity challenges are increasingly addressed through automation.

Taken together, the latest funding round suggests Australia's food sector is moving beyond simply producing more food. Instead, the focus is shifting toward smarter production systems, higher-value crops, food waste utilisation, native proteins and technologies that improve efficiency from farm to shelf.

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