|
|
Spain Food and Drink Report Q1 2008Published by: Business Monitor International Published: Feb. 20, 2008 - 74 Pages Table of Contents
AbstractSales of private label food and drink products have risen dramatically over the last 15 years and BMIexpects this trend to continue with renewed vigour as consumers become increasingly price savvy as theSpanish economy cools down. Spain’s retailers are currently bracing themselves for a drop in consumerspending on the back of a house price slump, rising unemployment and rocketing inflation. Howeverthese threats to consumer confidence create the ideal retail environment for private label products and thediscount sector which specialises in them as discussed in BMI’s newly-published Q108 Spain Food &Drink Report.The market share of private label products in Spain has increased from around 8% in 1993 to 35% todayand this upward trend shows no signs of abating. This dramatic rise has come about partly thanks to therise of the discount sector and also to a dramatic improvement in the quality of private label products.Spanish cuisine is often centred around fresh and simple ingredients and for these type of products thebenefits of branded products are often much less apparent than for more heavily processed food types. InDecember 2007, French retail giant Carrefour announced that it is looking to increase the market share ofits private label products in an effort to capitalise on this trend and benefit from the higher margins thatprivate label products offer. Discount stores are perhaps the spiritual home of private label products however the discount sector inSpain is relatively unsaturated and is currently dominated by one company - Carrefour and its Diabranded stores. Carrefour is easily the biggest player in this sector of the retail market and in July spentEUR200mn (US$276mn) to acquire Tengelmann's Plus discount stores in Spain. This move expandsCarrefour’s discount operations in Spain to around 3000 stores, making it far and away the biggestdiscount operator. German discounter Lidl operates around 350 stores in the country and rival discounteroperates Aldi around 140, having only entered the market in 2001. However both these companies arecontinuing to expand rapidly and with the countries current economic problems playing into the hands ofdiscounters BMI predicts this retail format to grow strongly. However private label products are now sowell established that no retailer can afford to neglect them. In 2008 BMI expects other retailers to followCarrefour’s lead and place more and more emphasis on their private label offerings. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||