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Own Label Products Growing in Importance

Own label accounts for over 30% of food and drink sales in 17 countries.  The UK is the world’s largest single market for private label at 46% of total sales. Retailers are quickly innovating, executing and differentiating private label strategies particularly in fresh food ranges. Nielsen states that: “the value for money continuum from premium through to budget private label is being stretched and retailers are innovating quickly to meet shopper expectations.” Nielsen’s EVP Marie Lalleman, Strategic Clients says that: “premiumisation of private label is a clear trend in the market. Most notably in areas of health, wellness and food safety.” Key for wholesalers is that the outlets with the fastest growth for private labels are: discounters, online grocery and convenience stores.*

Against this background the Co-op purchase of Nisa Wholesale has enabled Co-op brand distribution across 4,000 convenience stores and is looking like a masterstroke. The Co-op positioning is all about value, provenance and sustainability. Nisa is reporting strong sales performances accruing from this initiative. The win for the Co-op is that it secures brand penetration, brand profile, enhanced sales volumes and presumably the associated improved buying terms. Morrison is also actively pursuing a partnership/wholesaling option to retailers – now expanding beyond the initial supply deal with McColls.  Could we soon see Tesco labels on offer to retailers through Booker Wholesale?

How do you view the own label offering from the wholesalers? Are you happy with their own labels? If available would you rather stock Tesco, Sainsbury, Asda brands etc? Please let us know your opinion through contact us:

David Gilroy

* Ref: The Buyer Online



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