Market Report
Consumers Opt for Own Brands
More than 30 Million people are now opting for supermarket own labels in an attempt to save money, according to a new report by www.uswitch.com. The research found that nine out of ten UK adults now use recession-busting strategies on weekly shopping, reports www.ft.com. Consumers’ buying own brands instead of premium labels is at 73 percent compared with 25 percent last year. A further 74 percent of consumers now regularly use coupons compared with only 26 percent last year.
The study further revealed that although price increase have stabilized, 45 percent of consumer still find food to be more expensive than last year and are forced to adapt their own savings tactics.
National Brands Down, Own Brands Up
Verdict Research’s new report on major retailers’ private label relaunches during the economic downturn finds that although the rapid growth seen by private label is coming to and end, branded fast moving consumer goods are set for a rough path ahead.
Having shot up to a 38.3 percent market share of EU27 grocery retailing in 2008 on the back of the rescission, private label market share gains will fall back to a more steady incremental pace. Verdict believes that consumers loyalty shift from branded to private label lines is permanent and the new battle for market share will be contested between retailers and within existing range architectures. Rising unemployment and continued uncertainty about about the broader macroeconomic outlook will ensure that private label as a whole will continue to gain share at the expense of branded goods. Across the EU, private label will emerge as one of the winners in this crisis.
The tentative revival of premium private label ranges is already taking place.
Leader Price Launches Fairtrade Private Label
Casino-owned Leader Price has launched a range of Fairtrade private labels called Leader Price Equitable with the Max Havelaar stamp, according to www.planetretail.net. The range consists of 12 products including coffee, tea, rice, chocolate, jam, coca powder, sugar and fruit juice. The packaging design is simple and doesn’t market the producers through pictures or descriptions. It is around 3 to 4 percent cheaper than Leclerc Fairtrade private labels.
Rewe: 30% PL Share
Rewe is launching a premium range as part of its strategy to increase private label penetration, according to www.plmainternational.com. The premium private label range, called Rewe Feine Welt (Rewe Fine World), will be available in the groups larger German stores and will initially comprise 60-100 fresh and ambient products. The assortment will be promoted through television and a dedicated website.
Last year Rewe launched its 400 SKU Rewe brand to replace various category labels, and in early 2008 introduced its new Rewe Bio organic private label to replace the Fullhorn brand. In its full-range stores, REWE offers around 1,000 private label SKUs.
PL Gains at Edeka
Edeka is posting big sales gains for its economy ranges and the German retailer is planning for a major expansion of its discount stores, according to www.plmainternational.com. Edeka’s CEO Markus Mosa reported sales increases of 30 to 40 percent for its economy private label products. The Edeka executive warned brand manufactures that they have to lower their prices if they want to stay competitive. “The price battle is clearly pushed by the discounters,” he told Welt Online, saying this would naturally impact traditional supermarkets where economy lines are becoming even more important.
Carrefour Launches Discount Range
Carrefour has now launched Carrefour Discount, its range of low-priced products, in Belgium, following the launch in its home market during April this year, according to www.planetretail.net. The line will be available in all Carrefour hypermarkets, GB and Carrefour Market supermarkets. Carrefour Discount comprises a selection of everyday essentials, at “very low prices” that meet the manufacturer brands’ quality standards, Carrefour stressed. Carrefour Discount will cover over 200 SKUs, essentially food products but also some beauty and personal care products.
Aldi Hofer Develops New PL
Aldi Süd’s Austrian subsidiary Hofer is about to launch a new private label line for regional products from Lower Austria, named ‘Regionale Spezialitäten’, according to www.planetretail.net. The range has been developed in cooperation with the ‘Echt aus Niederösterreich’ and Waldviertel initiatives, retail magazine Regal has reported.
Hofer is making its TV premiere, promoting its 'Zurück zum Ursprung' ('Back to the origin') private label. The range features traceable, sustainable foods from Austrian organic farmers. The campaign not only includes a TV spot from ad agency Gull Company, but also two infomercials on the Café Puls breakfast TV channel of the ProSiebenSat.1 Media group. The commercials are focusing on "organic pioneer" Werner Lampert, the inventor of 'Zurück zum Ursprung'. Back in 1994, Lampert developed Rewe Group Austria's organic food range 'ja! Natürlich', which has become one of the best known brands in the country. Hofer has also, for its sustainable food range, teamed up with NGO Greenpeace in an environmental initiative called ‘1,000,000 good deeds for climate protection’.
Meanwhile, insiders have indicated that Hofer’s ready-to-wear designer fashion range ‘lineight’, which was first promoted in March and May this year, will be discontinued.
KESCO Renewing Pirkka PL Packaging
Finnish retailer Kesko is renewing the packaging of its Pirkka private label products, according to www.planetretail.net. The aim is to provide a totally new look for Pirkka so it can compete successfully with other brands. The underlying aim is to increase sales of Pirkka products, to attract new user groups, and to help existing users to find new products. The packaging of over 1,700 products Pirkka products is to be renewed in three years' time. Kesko will also add recycling labels to the products at the same time.
Dansk Supermarked Launching New Discount PL
Over the course of late summer and autumn 2009, Dansk Supermarked plans to roll out a new discount private label called “Budget”. The Budget label will have bright red packaging, so that it will be recognizable across the different product categories and banners, according to www.planetretail.net. Initially Budget will appear in the Dansk Supermarked banners Føtex and Bilka. According to Dansk Handelsblad, the different discount private labels of Dansk Supermarked will all be gathered under the new label and introduced in all Dansk Supermarked-owned banners by the end of 2009.
Co-operative Group Sells Own Brand in Somerfield
UK retailer The Co-operative Group has begun selling Co-op branded products in Somerfield stores, according to The Grocer and www.planetretail.net. Somerfield, which was acquired by the Co-op last year, will start stocking Co-op branded tissue which is made from material that has been completely sourced from FSC-certified responsibly-managed forests and recycling facilities. The Co-op has already re-branded Somerfield’s economy private label range from Simply Value to The Co-operative Simply Value in Co-op stores. In an e-mail to Somerfield customers, the Co-op said: "Over the next few months you will start to see exciting new Co-op products being introduced on the website and in your local store. There are really exciting times ahead - lots of things will stay the same - we'll be as local as we were before, have the same friendly faces greeting you and be as great on everyday value."
