Blog: Dean BestOwn-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.


BLOG

We wish you a merry Christmas

Today (23 December) is just-food's last day before closing for Christmas. We'll return, raring to go on Tuesday 3 January - but of course there's been plenty of top-notch content that has gone live in...

BLOG

UK food associations come together on Brexit

The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...

just-food homepage



Forgot your password?