Australian grocery wholesaler Metcash and New Zealand-based grocery retailer Foodstuffs have joined forces to create one of Australasia's biggest grocery alliances.

The combined might of the two retailers will give them a buying power of AUS$15bn and this, the Australian Associated Press has reported, will give them access to a broader rage of cheaper products.

"The combination of our buying power and other economies of scale generated through our alliance will allow us to supply cost effective and high quality groceries to our combined customer bases throughout New Zealand and Australia," Metcash CEO Andrew Reitzer said.

"We are delighted to be teaming up with the market leader in New Zealand and the initial benefits of our strategic alliance will be evidenced in the boost in our private label businesses," he continued.

Under the agreement, the two companies will share information, technology and training while each continues to build its own business independently from one another.
 
"Metcash is committed to championing the independent retailer and will continue to invest in partnerships with the necessary capital to build the independent grocery sector into a stronger force in the Australian and New Zealand markets," Reitzer said.