4 - Refresco.de

enabling consumers to acquire quality beverages at affordable
prices.”
How do you view the future of private label and A-brands?
“Everything is a question of balance and differs by country.
If you consider the cola market in Germany, the Pepsi and Coke
brands represent 37% of the market in volume, whereas private
labels take the lion share with 63%. This reflects the German
distribution system, which is very oriented towards hard
discount, low prices giving private label a great
deal of weight. In the UK, private labels
are very strong because they can
position themselves as real
alternatives to A-brands.
This means that they do not just operate on the quality/price
relationship but also on quality/image. In France, only very few
brands focus on innovations. This can create space for private
labels to gain a higher share of the market, such as in Germany
or in UK. But in general, you need a competitive environment
between A-brands and private labels in order to stimulate the
markets.”
In the midst of an economic
downturn it is even more important for
A-brand manufacturers to build brand loyalty.
The rising popularity of branded products identified
in some markets (UK) is part of a more general mood of
nostalgia among consumers, where people retrench to things
they know and trust because of a long-term relationship: the
good old favorites that remind them of better times. At the same
time, competition between private label products is increasing and
the economic climate is pressuring companies to pay extra attention
to where they can gain any cost advantage. To achieve this, they are
seeking to outsource the manufacturing of their products to specialists,
like Refresco, so they can profit from economies of scale and count on
reliable production from people with the right expertise.
page _ 58 / 59