EU - Whereas the Private Label market share has been growing in most European markets since 2009, particularly in Spain and Poland where it has risen by 10 per cent, it remained stable in France between 2009 and 2013, according to Stephanie Lahad from the Paris Office of Bord Bia, the Irish Food Board.
Private label has a 28 per cent market in France share in value and decreased slightly in 2014, based on Nielsen’s figures as quoted in the French trade magazine Linéaires.
The reason for this is the fierce competition between retailers in France, Stephanie Lahad said.
The price war has been particularly aggressive between Carrefour and Leclerc and, more recently, Casino.
The new alliances between leading multiple retailers (e.g. Auchan and Système U) are putting further pressure on brand manufacturers to lower their prices.
This is impacting hugely on Private Label performance, as their price differential with brands has decreased dramatically, resulting in sales loss.
Entry price and standard ranges have been particularly impacted in France, declining by 4.9 per cent and 0.2 per cent respectively according to the Nielsen data.
On the other hand, premium and organic private label ranges have managed to grow by 5.8 and 1.4 per cent respectively.
In all, 55 per cent of the French consumers consider Private Label products to be as good as branded ones (Linéaires), which places France at the 12th rank in Europe, far behind Germany or Austria (with 70 per cent) where private label products are particularly well perceived. Moreover, 46 per cent of French consumers think that Private Label packaging is less attractive than branded.
It is also a matter of retailers’ concentration: In countries with fewer players such as Switzerland, where Migros and Coop possess 56 per cent of the market according to Euromonitor, private label market share is higher. Future concentration of the retail landscape in France could therefore influence this trend.
Bord Bia is to host a European Private Label seminar on this theme on Thursday 23 April.TheMeatSite News Desk