Executive Summary
Introduction
Market dynamics
Issues and strategies in private label
Private label case studies
Industry opinion survey
Conclusions and future outlook
Chapter 1 Introduction
Summary
Introduction
The changing face of private label
Driven by retail need
Private labels are the new national brands
Empowered retailers force the pace
Chapter 2 Market Dynamics: Performance and Developments
Summary
Introduction
Private label in context
Private label, own-label or store brand?
Private label performance by category and country
Growth rates struggle, but opportunities remain
Private label confectionery in the UK - a case study
Private label drinks perform poorly
United States learns from established European markets
Enthusiasm for private labels varies by country
Consumer preferences drive market
Private label narrows the gap
Private label growth - less consumer choice?
Retail developments in private label
Lower prices and costs mean higher margins
Retailer consolidation helps drive private label growth
Retailers embrace private label
Manufacturers: difficult times, but opportunities can be exploited
Conditions have been tough for all manufacturers
Retailers hold all the cards
Secondary brands face battle for survival
‘Me-too’ products are not all bad news
Falling margins impacts on R&D
Deeper penetration of private labels
Streamlining can be beneficial to manufacturers
Manufacturers consolidate to succeed
Manufacturer-led innovation
Chapter 3 Issues and Strategies in Private Label
Summary
Introduction
Current concerns in private label food and drinks
Issue one - retailer consolidation is the most important issue facing the private label industry
Issue two - price pressure and maintaining quality
Issue three - eAuctions: a shortsighted approach?
Issue four - pro-activity of manufacturers
Financial transparency and industry expertise
Retail strategies in private label food and drinks
National brands are a ‘must have’ but they are not unique
Market share and margins are key for retailers
Pricing strategies are vital…
…in the battle for market share
Developing niche markets in private label: a case study
A sophisticated approach to private label brand management…
…With a consistent message across national borders
Not all retailers are national chains
Manufacturer strategies in private label food and drinks
Efficiency requires transparency in costs
Increase manufacturer capacity
Manufacturers must be flexible
If you can’t beat them, join them
New product development has a vital role to play
Many opportunities for manufacturer pro-activity
Consumer insight into private label
Who buys private label products?
The consumer’s perception of private label products
The impact of a recession on private label products
Chapter 4 Global Retailers and Private Label: Case Studies
Summary
Introduction
Ahold - the local store in 27 countries
Strategic overview
Private label developments
Future strategies
Carrefour - a single global banner
Strategic overview
Private label developments
Future strategies
Sainsbury’s - spanning the Atlantic?
Strategic overview
Private label developments
Future strategies
Shaw’s - a recent convert to private label
Strategic overview
Private label developments
Future strategies
Tesco - the UK’s leading grocery retailer
Strategic overview
Private label developments
Future strategies
Wal-Mart - the world’s number one retailer
Strategic overview
Private label developments
Future strategies
Chapter 5 Private Label Food and Drinks Industry Opinion Survey
Summary
Introduction
Private label markets in 2002—2003
Strong performance in 2002 and prospects are positive
Store reputation is vital to the success of private label
Chilled and frozen products perform best in 2002—2003
Private label and the consumer
Prices and value for money are believed to be the most important consumer concerns
Mothers with young families and ethnic groups are the key targets for private label products
Key issues in private label
Increasing concentration of retailer power is the key concern of the private label industry
Marketing will become essential for manufacturers
Global comparisons in private label
Italians perceived to show least enthusiasm for private labels
The U.S. still has room for private label expansion
The future of private label
Organic and premium brands to lead the way forward…
…With functional products making the greatest strides
Dairy and bakery markets are set to shine…
…But opportunities for wine look bleak
Tough times ahead for manufacturers
Chapter 6 Conclusions and Future Outlook
Summary
Introduction
Future growth in private label
Grocery retailers will lead developments
Organic and premium segments will prosper
Opportunities for growth beyond ‘maturing’ European markets
Future trends in private label
National retail markets will be dominated by up to five key retailers
Downward pressure on prices will continue
Private label consumers will become increasingly sophisticated
Strategies for success in private label
Retailer strategies for success in private label
Manufacturer strategies for success in private label
Chapter 7 Appendix
Primary research methodology
Terms and abbreviations used in this report
Food and drinks segmentation table
Index
List of Figures
Figure 2.1: How will each of the following private label food categories perform in 2002—2003?
Figure 2.2: How will each of the following private label drinks categories perform in 2002—2003?
Figure 2.3: Innovative markets for private label in Europe and the United States
Figure 2.4: Manufacturer dynamics in private label
Figure 3.5: Key issues in private label markets
Figure 3.6: Promoting private label in-store in the UK
Figure 3.7: Manufacturer strategies in private label
Figure 3.8: SID - Sainsbury’s portal for electronic B2B relationships
Figure 3.9: Which consumers are most important to the private label market?
Figure 3.10: Selected consumer concerns when purchasing private label products
Figure 4.11: Ahold’s Albert range now extends across Europe
Figure 4.12: A selection of private label ranges at Carrefour
Figure 4.13: A selection of private label products at Sainsbury’s
Figure 4.14: Private label ‘functional’ products at Tesco
Figure 4.15: Wal-Mart private label sample products in Germany
Figure 5.16: How will the private label market for food and drinks perform in your country?
Figure 5.17: How important are the following factors when influencing market growth for private label products in 2002—2003?
Figure 5.18: How important are the following factors when influencing market growth for private label products in 2002—2003?
Figure 5.19: How will each of the following private label food categories perform in 2002—2003?
Figure 5.20: Consumers look first to price and value for money
Figure 5.21: Manufacturer transparency is not important
Figure 5.22: Customer profiling
Figure 5.23: Key issues in private label markets
Figure 5.24: Manufacturer strategies in private label
Figure 5.25: The importance of private label by country
Figure 5.26: The United States is believed to have the greatest growth potential for private label
Figure 5.27: Which segments of the private label market will grow most aggressively over the next two to three years?
Figure 5.28: Which private label food categories will compete most effectively over the next two to three years?
Figure 5.29: Which private label drinks categories will compete most effectively over the next two to three years?
Figure 5.30: Pressures increase on manufacturers
Figure 6.31: Building blocks for success in private label
List of Tables
Table 2.1: Private label supermarket performance in the United States; Dollar sales and unit volumes, 2001
Table 2.2: Private label market share in the United States; Dollar sales and unit volumes, 1997—2001
Table 2.3: Top ten private label food and drinks markets in United States supermarkets, Dollar sales and unit volumes, 2001
Table 2.4: Fastest growing private label food and drinks markets in the United States, Dollar sales and unit volumes, 2001
Table 2.5: Regional supermarket sales of private label products in the United States; Dollar sales and unit volumes, 2000—2001
Table 3.6: Private label promotional space at UK retailers by category, 2002
Table 5.7: How will each of the following private label product categories perform in 2002—2003?
Table 5.8: Identifying the most important consumers groups for the private label market
Table 5.9: The importance of private label by country
Table 5.10: Which segments of the private label market will grow most aggressively over the next two to three years?
Table 5.11: Which private label product categories will compete most effectively over the next two to three years?
Table 5.12: How will increasing retailer concentration influence the private label market over the next two to three years?
Table 6.13: Beyond organic and premium categories experts forecast growth in ‘functional’ private label products
Table 6.14: Which private label product categories will compete most effectively over the next two to three years?
Table 6.15: How will increasing retailer concentration influence the private label market over the next two to three years?
Table 7.16: Terms and abbreviations used in this report
Table 7.17: Definitions of food and drinks segments used in this report
Table 7.18: Definitions of food and drinks segments used in this report continued
Table 7.19: Definitions of food and drinks segments used in this report continued
Table 7.20: Definitions of food and drinks segments used in this report continued
