Blog: Aldi finds shelf space for brands

Catherine Sleep | 13 October 2005

German hard discounter Aldi has begun selling a small number of branded products in its domestic market, marking a shift from its traditional focus on cheaper private-label brands. Rival discounter Lidl has already made steps in this direction, but Aldi has traditionally been the ‘harder’ hard discounter. Although still only half the size of Aldi, Lidl performed much more convincingly in 2004 and it seems Aldi has decided to take a leaf out of its book.

Hard discounters account for 40% of the German grocery market, giving them huge negotiating power, which they will doubtless use to good effect. If sales go well, this will provide a massive new sales channel for manufacturers of high profile branded products.

Another interesting fact about Aldi: the brothers who founded the company, Karl and Theo Albrecht (ALbrecht DIscount – geddit?) are far and away the richest people in Germany. They are worth more than fifteen billion euros apiece. The senior brother, 85-year-old Karl, saw his fortune grow by an estimated €400m last year, while kid brother Theo (83) perhaps rested on his laurels as his bank balance remained steady at €15.1bn.

Who says that piling it high and selling it cheap will never make anyone rich?

Aldi starts selling branded products


BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?