UK grocery retailer Tesco has said that its launch of a new yoghurt line will undercut its branded competitors – including Yoplait, Danone and Muller – by as much as 20%.
The group’s new Yoo line, its first range of yoghurts, will offer some 21 varieties of yoghurt product.
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The UK’s largest retailer said it plans to “reinvigorate” the yoghurt market by “coming in 11p cheaper than the price of an existing branded yoghurt, adding more fruit to an average pot than in the competing branded yoghurt” as well as using “100% British Milk and proudly displaying the Union Jack on its packaging”.
The range includes four different lines including Yoo…Fruity Thing – a split pot with yoghurt and a separate portion of fruit; Yoo…Yummy Thing – yoghurt and crunchy chocolate cereals; Yoo…Tasty Thing – low fat, smooth and stirred, layered yoghurts; and Yoo…Light Thing – a fat-free range.
The supermarket values the market at GBP1.2bn (US$1.96bn), but according to Nielsen, Uk sales of yoghurt dipped by 1% in the past year.
Tesco yoghurt buyer Matt Ward said: “The UK yoghurt market has been underperforming for several years so we asked shoppers how we could help make it better. The three key concerns were new products; better quality and better value. We’re confident that customers will see that we have addressed all those points with the launch of Yoo.”
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By GlobalData
