4 - Refresco.de

4 - Refresco.de 4 - Refresco.de

18.11.2012 Views

Market review 2009 “Retailers need to strike a balance between their credibility in Grievink adds: “The ‘value’ type will grow especially because more varieties will be introduced.” Schreijen: “The growth currently found in value private label is notably due to the recession. Retailers are expanding their SKUs and consumers are getting more price conscious. Grievink: “When the economy recovers, strong growth will be seen in the rather small third type of private label: premium, because people can then afford more luxury.” De Jong adds: “Here lies a huge opportunity for retailers. They can define target groups, formulate a theme that addresses what is going on in society and they can grow distinct segments, e.g. for the elderly, or halal food, or organic. This will benefit them because they can adapt it to suit almost all categories. Not even the biggest A-brand manufacturer has so many categories at his disposal. Retailers are thus building consumer loyalty and are in fact trading up consumers. When A-brands perform less, growth can also be seen in the standard ‘me too’ type.” Schreijen: “On the private label supplier side too there is still room for improvement in terms of efficiency and consolidation. When you look at the margarine market, for instance, it is considered a mature market; a few big suppliers cover Europe without much overlap.” What are the biggest challenges for A-brands? Grievink: “A-brands should be aware of becoming a commodity, easy to copy and very mainstream. It is expected that in the coming years about 25% of the A-brands will be in danger of disappearing. At the same time, retailers are uplifting stores into brands. They are transforming from being simply distributors into concepts, representing lifestyles, adding emotional value to their product. The need to stand out is growing, showing growth in private label type three ‘premium’. De Jong: “The biggest challenge for A-brands will be: how to deal with private label after the recession. The past few years have shown that after a period of economic downturn, customer loyalty to private label products remains. The majority of consumers who choose private label will not go back to choosing A-brands when times get better.” What should A-brands do to compete with private label? Grievink: “Innovate & differentiate. We now see the incremental value of some A-brands disappearing. The only A-brands that will survive are the ones that grow into ‘superbrands’, meaning those brands substantially better regarding product specifications (functionally) and regarding brand experience (emotionally). Innovation should not only be taking place in product, but all along the production chain, from product, packaging, consumer experience to distribution channels etc. The focus should be on differentiation from other (private label) products by promoting the quality and the emotional added value. What A-brands absolutely need to avoid is solely price promotion.” De Jong: “I agree. In these tough times A-brands should heavily invest in promotions in order to support their brands. Advertising costs are now significantly lower because of the economic situation and the urge is there to keep the consumer’s loyalty. The current high advertising budgets spent by the major brands in the UK show that A-brand manufacturers see the importance of this.”

A-brands and private label to keep the eyes of the consumer” Jan-Willem Grievink, FCI PRIvATE lABEl SHARE By COuNTRy IN NON-AlCOHOlIC BEvERAGES Volume shares Change 2008 2009 UK 27.4% 26.4% -1.o% Germany 38.4% 41.6% 3.2% Belgium 35.5% 33.5% -2.o% Spain 13.9% 15.1% 1.2% Portugal 12.6% 14.2% 1.6% France 29.1% 30.1% 1.o% Netherlands 34.o% 35.o% 1.o% Finland 9.5% 9.5% 0.o% Sweden 19.6% 19.4% -0.2% Poland 16.8% 18.5% 1.7% Czech republic 23.6% 24.4% 0.8% Slovakia 21.8% 22% 0.2% Switzerland 30.8% 31.6% 0.8% Source: Canadean page _ 50 / 51

A-brands and private label to keep<br />

the eyes of the consumer” Jan-Willem Grievink, FCI<br />

PRIvATE lABEl SHARE By COuNTRy IN NON-AlCOHOlIC BEvERAGES<br />

Volume<br />

shares Change<br />

2008 2009<br />

UK 27.4% 26.4% -1.o%<br />

Germany 38.4% 41.6% 3.2%<br />

Belgium 35.5% 33.5% -2.o%<br />

Spain 13.9% 15.1% 1.2%<br />

Portugal 12.6% 14.2% 1.6%<br />

France 29.1% 30.1% 1.o%<br />

Netherlands 34.o% 35.o% 1.o%<br />

Finland 9.5% 9.5% 0.o%<br />

Swe<strong>de</strong>n 19.6% 19.4% -0.2%<br />

Poland 16.8% 18.5% 1.7%<br />

Czech<br />

republic 23.6% 24.4% 0.8%<br />

Slovakia 21.8% 22% 0.2%<br />

Switzerland 30.8% 31.6% 0.8%<br />

Source: Cana<strong>de</strong>an<br />

page _ 50 / 51

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