Australia’s biggest grocer, Woolworths, has announced it has launched its own in-store media service that could see its FMCG customers pay it millions to stock and market their products.

The Australian has today reported that it has ditched agency Torch Media after 10 years and will take the responsibilities in-house via a new business called Woolworths Media Hub that will be responsible for all the marketing and advertising opportunities inside its 900-odd stores across Australia.

Based at Woolworth’s head office at Bella Vista in Sydney the new business will also be responsible for some catalogues and booking some advertising space.

Woolworths general manager Rod Evenden has written to suppliers advising them that Torch Media would no longer book advertising space ­inside Woolworths stores, although any campaigns that had been agreed to until September 30 would not be affected.

“During July we will be inviting you to the launch of the Woolworths Media Hub, introducing you to the new team, as well as uncovering all the media opportunities that are available,” Mr Evenden said in his letter to grocery suppliers.

The new deal will see all of Woolworths in-store activities handled internally and may include sell advertising on everything from trolleys and baskets, to in-store radio, freezer stickers and leaflets hanging from shelves.