Blog: Own-label growth could be hard to swallow for some
Dean Best | 11 July 2007
The latest figures on the presence of own-label products in the UK grocery market will provide food for thought for many in the industry.
A study out today (11 July) claims that own-label will continue to grow its share of the entire market. Market intelligence group Key Note predicts own-label sales will grow to 42% of the grocery sector by 2011.
UK retailers will no doubt use forecasts like that to support their moves to boost and expand their own-label offerings.
However, for some manufacturers, the outlook – based on these numbers – looks bleak. The rise of own-label products in the UK, a market where competition between the top retailers is fierce, has led to pressure on the margins of manufacturers of own-label products – just ask struggling UK baker Inter Link Foods.
What’s more, as the likes of Tesco and Sainsbury’s move their own-label ranges into the more premium ends of the market, there is a greater threat to brand-owners.
A similar survey in the US earlier this year forecast that the value of own-label food and drink sales is set to rise by 16% by 2011.
Food for thought, indeed, on both sides of the Atlantic.
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. ...
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Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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