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

Plenty of hot air as UK politicians grill Asda, Sainsbury's over merger

UK Parliamentary select committees at their best are meant to bring light rather than generate heat but this wasn't a select committee at its best....

BLOG

Asda and Sainsbury's - deal or no deal?

The proposed merger between Asda and Sainsbury's - two of the UK's 'big four' supermarkets - is, as expected, getting people hot under the collar....

BLOG

Carrefour, Google team up as France's online grocery shake-up continues

France's largest food retailers have made a number of moves in recent quarters to try to tap into the growth of the country's online grocery market - and this week another notable venture has been ann...



Forgot your password?