The agency picked up the business in a pitch against a number of agencies, including McCann Erickson, the incumbent on the Co-op group account. However, the project does not affect McCann's grip on the overall Co-op business.
The campaign will not only include TV spots directed by Ridley Scott's son, Luke, but will also incorporate a Christmas single by Gabriella Cilmi.
The Australian singer has already had two chart hits in the UK with Sweet About Me, which reached number seven in the UK charts in April, and Save The Lies, which reached number 33.
Working alongside TBWA\Stream, the Manchester-based agency has produced a song for the singer, which is a cover version of Connie Francis' I'm Going To Be Warm This Winter.
The track will appear in the TV ads and will be released as a single later in the year. It will also be available on a limited-edition version of her album, Lessons To Be Learned.
Debbie Robinson, the director of food and retail at the Co-op, said: "This year, we wanted something different, something that would encapsulate that Christmas feeling. The fit between the artist and the creative is perfect, and we cannot wait to release it to the public."
TBWA\Manchester has worked for the Co-op on a project basis in the past, and released a campaign last year called "shop green" that attempted to raise awareness of green issues with Co-op shoppers.