Blog: Dean BestPrivate label star waning?

Dean Best | 5 November 2009

We heard from two players on the US stage today (5 November) – one retailer and one manufacturer – both of whom bore the same message.

According to the management of meat-to-bakery group Sara Lee and supermarket operator Delhaize, the tide could be turning against private label in the US.

Delhaize admitted that increased promotional activity from national brands had slowed the growth of its private label sales in the country.

"When national brands fight for the growth of their top line with some very interesting promotions consumers are interested. We have seen a lesser increase in private label than in 2008 and early 2009," Delhaize CEO Pierre-Olivier Beckers said

In addition, the Belgium-based group said that consumers had been trading down within its three-tier private label offering.

Meanwhile, again pointing to increased promotional activity from branded producers, Sara Lee also flagged up the slowed growth of private label.

However, Sara Lee admitted that it has failed to benefit from this trend because it has been slower to invest in lowering prices than a number of its branded competitors.

This is something the group will look to address in the coming months.

Nevertheless, as Barnes cautioned: "The hardest thing to avoid is doing crazy things in the market place... We will not do crazy things to drive that volume up."

Click here to read more Sara Lee's plans to boost volumes, or here to check out Delhaize's take on trends in private label sales.


BLOG

General Mills trials new way of buying Haagen-Dazs

On Friday (7 September), ice-cream lovers in part of central London were able to order Häagen-Dazs on their phones - and have it delivered directly to them, wherever they were....

BLOG

just-food closed on Monday 27 August

As I type, grey skies cover south-east London, with drizzle hitting the windows - but the forecast is set fairer for tomorrow when the country has its final public holiday before Christmas Day....

BLOG

If Kraft Heinz passed on Pinnacle, it should do so with Campbell

It's almost 18 months since Unilever rebuffed Kraft Heinz and, ever since, the rumour mill has spun over where the US manufacturer could look next. It's been reported today (2 August) the ketchup make...



Forgot your password?