Symbol store own-label food quality needs to rise

 Breaking News
  • Coca-Cola HBC to Acquire Italian Water and Sparkling Beverages Company in €88 Million Deal Coca‑Cola HBC has agreed to acquire Acque Minerali, a privately-held natural mineral water and adult sparkling beverages business based in Italy. The acquisition is being made in conjunction with The Coca-Cola Company, in-line with previous similar acquisitions. The total enterprise value payable by Coca‑Cola HBC and The Coca‑Cola Company, subject to customary closing adjustments, amounts [...]...
  • Britvic Signs Up to Science Based Targets Initiative Britvic has pledged to pursue bolder greenhouse gas (GHG) emission reduction targets by signing up to the Science Based Targets initiative. Britvic joins around 600 leading companies from around the world in formally committing to independently verified science-based GHG emission reduction targets. Britvic’s A Healthier Everyday sustainability strategy recognises climate change as one of the biggest threats facing [...]...
  • Marks & Spencer Partners Infarm to Bring Urban Farming to London Stores M&S Food is partnering with infarm – one of the world’s most advanced urban farming platforms – to deliver a range of fresh produce grown and harvested in a selection of the retailer’s London stores. Customers will now find a range of fresh herbs – including Italian, Greek and Bordeaux Basils, Mint, Curly Parsley and Mountain [...]...
  • Coca-Cola European Partners to Remove 4,000 Tonnes of Single-use Plastic by Swapping Shrink Wrap For Cardboard in Western Europe Coca-Cola European Partners, will be replacing plastic shrink wrap with cardboard for its can multipacks across Western Europe, removing approximately 4,000 tonnes of single-use plastic per year across the region. This is the latest move in Coca-Cola’s commitment to tackle packaging waste and remove all unnecessary single-use plastic from its secondary packaging. Plastic shrink wrapping is used [...]...
  • EU Leading in Global Agri-food Trade The EU has been confirmed for yet another year in its position as the largest global exporter of agri-food products, with sales reaching €138 billion in 2018. Agriculture products represent a solid share of 7% of the value of EU total goods exported in 2018, ranking fourth after machinery, other manufactured goods and chemicals. Agriculture and [...]...

Symbol store own-label food quality needs to rise

May 07
12:39 2013

Own-label food manufacturers need to raise the image and quality of products supplied to ‘symbol’ stores if they are to convince shoppers that they are as good as those offered by multiple supermarket chains.

This is particularly important as the symbol stores try to fight off competition from the major multiple retailers, which have moved into the convenience sector in recent years with lower price customer offers, it has been claimed.

Speaking at the IGD Symbol Groups 2013 conference in London yesterday (May 8), Michael Freedman, shopper insight manager for IGD, reported on the grocery think tank’s latest ShopperVista research. It showed shoppers perceived the quality of own-label foods sold by symbol stores to be inferior to that sold by the multiples or Co-operative stores.

‘Private-label is now a fundamental’

“Private-label is now a fundamental part of the convenience channel,” said Freedman. Good value was seen as a key part of own-label products, with 42% of shoppers believing own-label offered better value for money, he added: “There is definitely work to do on improving quality perceptions.”

Over recent years multiples had worked hard with their own-label suppliers, for example through Sainsbury’s ‘Taste the Difference’ and Tesco’s ‘Finest’ top-end ranges, to match the quality of equivalent branded products. Freeman said it was important for symbol stores to differentiate themselves from the multiples, while still offering hard-pressed consumers value for money.

Freedman noted that today’s “savvy shoppers” were looking for money-saving offerings, stores that showcased quality – including good own-label products– and “real deals” in their purchases, such as more systematic reduced price offers for products approaching their ‘use-by dates’ or ‘£1 zones’ in stores. The priorities from the ShopperVista consumer research were saving money spent on groceries, reducing food waste and keeping to a budget, he added.

Focusing on products targeted at smaller households and single person households might be a solution for some independent stores, he suggested, since this would help them reduce waste and therefore cost. He cited Kingsmill’s ‘Little Big Loaf’ as a good example of this approach.

Kingsmill’s ‘Little Big Loaf’

“Symbol stores are really well positioned to benefit from this trend,” he said.

There is considerable consolidation underway in the convenience food sector. Symbol groups such as Nisa, Spar, Premier and Costcutter are growing in strength as more and more independent corner shops find it increasingly difficult to compete with the multiples, which have moved heavily into the convenience store sector in reach years.

IGD chief economist James Walton reported that convenience store numbers were expected to increase by 5% a year for the next five years.

As the convenience sector became less “fragmented”, this would offer good prospects for suppliers, which would find the sector easier to deal with, he added.

However, he warned that a “new recipe is required” if symbol stores were to compete successfully with convenience stores operated by the multiples retailers. He suggested they needed to compete in areas where the multiples were less effective, taking advantage of local connections and a local focus, or meeting the health needs of consumers. However, it would be critical for symbol stores to differentiate themselves, he stressed.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here