FDBusiness.com

Mixed Growth For Private Label Soft Drinks Across East and West Europe

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

Mixed Growth For Private Label Soft Drinks Across East and West Europe

October 19
11:27 2016

Private Label soft drinks have faced turbulent times in recent years, with periods of economic uncertainty boosting consumption, and periods of prosperity seeing volumes fall, according to consumer insight firm Canadean. The company’s latest Q2 beverage trackers for East Europe and West Europe state that Private Label soft drinks, a relatively new phenomenon in some East European countries in 2015, continued to perform well. Meanwhile in West Europe, Private Label returned to growth after two years of decline, although continuing to underperform versus branded products.

canadeansoftdrinksoctober2016resizedEmma Wright, Analyst for Canadean, explains: “The return to growth of the Private Label segment in West Europe can be partly attributed to more retailers introducing premium quality and value-added own-label lines that are lower in cost than branded products, but can rival their quality and, in many cases, packaging design. However, the slowing growth rates registered in East Europe Private Label soft drinks are the result of more consumers seeing a rise in disposable incomes, along with more branded items being sold at a discounted price.”

In West Europe, iced/ready-to-drink coffee was the category to see the highest increase, up 8%, as Private Label outperformed the market in countries such as Austria, where further gains were made in the discount channel. In East Europe, however, enhanced water, a relatively new category in the region, recorded the strongest growth at 23%, as it enticed consumers with its affordability over branded products.

Among the major categories, packaged water grew across both regions, while carbonates in West Europe fell back, due to the overall decline in consumption and aggressive price promotions for many key brands. Interestingly, carbonates did not drop in East Europe, instead rising by 2%. In countries such as Romania, where there is a degree of economic instability, low-end Private Label carbonates can often be three or four times less expensive than their branded counterparts; an important factor for low-income consumers.

Across both East and West Europe, in addition to the frequency of branded price promotions, Private Label soft drinks are coming under increasing pressure from the discounters’ strategy of listing growing numbers of branded products. This is expected to curb Private Label growth in 2016 overall, but in major own-label markets such as Germany and the UK, Canadean expects retailers’ premium Private Label lines to significantly outperform lower-end offerings.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements