Kaufland expands “from Europe for Europe”

Kaufland is expanding its online marketplace to two more countries: France and Italy. The Schwarz group subsidiary is currently present in Germany, the Czech Republic, Slovakia, Poland, and Austria. Having tested an online presence only, without physical stores, in Austria since the fall, the company says that it is very satisfied and sees its Austrian website visited by 1 million customer each month.

The two new markets would potentially increase Kaufland’s marketplace reach from 81 million to almost 140 million: 37 million additional potential clients from France and 22 million from Italy. As a reference, Germany is the biggest market with up to 32 million online visitors per month.

The aim of the retailer is to become the largest European platform, thus forming a counterweight to Amazon, Temu and the like. "We are the alternative to global e-commerce giants, from Europe for Europe. With that goal in mind, we are now taking the next two steps – certainly not the last," says Gerald Schönbucher, CEO of Kaufland E-Commerce. He continues: "As a platform that strictly adheres to European rules, we guarantee our customers data and product security. Our commitment to quality and fairness ensures that our customers can shop with a clear conscience and our retailers can sell successfully."

Divorce averted: French Council annuls veggie burger name ban

The French plant-based sector reacted with relief to the decision of the Council of State to annul two decrees prohibiting the naming of products containing plant proteins with butcher, delicatessen and fishmonger terms like “steak”, “burger”, “lardon”, or “sausage”.

The Council of State deemed the French decrees of 2022 and 2024 to be illegal and contrary to European regulations. The fact that those decrees targeted only French producers was also considered particularly unfair and unacceptable. The case is closed now with a full victory for the plant-based advocates. The French government will pay €3,000 each to the parties that brought the case to court.

NIQ index of top 20 private label retailers in EU5 revealed; M&S is tops

Three retailers from the UK make up the top 3 of the NIQ ranking of retailers with the highest percentage of private label sales in Europe: Marks & Spencer (96%), Aldi UK (89%) and Lidl UK (85%). The NIQ index analyses FMCG sales in the five main European countries France, Germany, Italy, Spain and the UK.

In fourth place is Lidl Spain, where private label sales represent 82% of its sales. Following in fifth place are Eurospin and Mercadona, both with an 80% share of private label sales. Aldi Germany (78%), Lidl France (77%), Aldi France (76%), and Aldi Spain (72%) complete the top ten for private label sales in Europe.

“No surprises - discounters like Lidl, Aldi, and Eurospin dominate the top 20. But they’re not alone! Supermarket giants such as Mercadona, Tesco, and Marks & Spencer also make the list,” says Daniel Ducrocq, Vice President of Retail for Western Europe at NIQ on Linkedin.

The remaining ten places in the top 20 include Lidl Italy, Lidl Germany, DIA (59% of sales correspond to private label), MD Discount, Waitrose, Penny, Norma, Sainsbury's, Tesco, and Asda with private label share of sales going from 72% down to 47.

“UK retailers stand out in particular in the ranking, with several retailers occupying a prominent place thanks to a highly developed private label strategy. What is the key to their success? A diverse product offering that covers all price segments, from basic products to premium innovations,” adds Ducrocq.

Dutch-based European purchasing alliance formed

Swiss retailer Coop, Dutch purchasing cooperative Superunie and Belgian retailer Colruyt Group have formed a European purchasing alliance named Vasco International Trading, with its headquarters based in Amsterdam. Vasco will act as a central point of contact for specific negotiations with leading international suppliers, focusing on pricing and contract terms.

In a joint statement, Colruyt, leading retailer in Belgium, explained that the “independent company aims to enhance the purchasing effectiveness of its shareholders to re-establish a level playing field to secure competitive terms and conditions from FMCG goods from international brand suppliers.” It added: “Vasco International Trading permits its shareholders to compete more effectively with internationally organised competitors, ultimately benefiting their customers. Colruyt is the leading retailer in Belgium.

Superunie represents ten independent Dutch retail organisations, operating over 1,500 stores and holding a 26% market share in the Netherlands. Swiss Coop’s retail activities, meanwhile, generated retail revenues of 20.8 billion Swiss Francs (approximately 21.85 billion euros).

Vasco’s first negotiations are scheduled to begin this autumn. The alliance will take a cautious approach in the first year, but in the long term Vasco International wants to engage in negotiations with approximately 50 of the world’s largest FMCG multinationals.

The alliance does not set itself any concrete objectives regarding purchasing advantages. “First, we want to pool our best practices and gather knowledge across borders. A small percentage on a large amount would already be worth it.”

The increasing tendency of retailers to create international alliances makes sense at a time that many supermarkets are struggling, while big international brand manufacturers are making considerable profits. In addition, many of the concerns expressed by the big brands about the rise of purchasing clubs are myths, concludes emeritus professor Marcel Corstjens of business school Insead in research into the impact of these alliances. What is not a myth, the study reports, is that purchasing groups predominantly use their advantage to lower prices. If retailers oppose big brand multinationals in a competitive market via alliances, the consumer wins.

Is “Buy European instead” on the rise?

Since the announcement of key political decisions and, recently, import tariffs on products by the US, some European retailers have reacted by highlighting European products in their assortment. Also, online various groups and forums have popped up that are sharing European alternatives for American products.

Social media plays a big role in reaching a very large audience with this kind of initiatives. In supermarkets in Spain, some customers were turning American products upside down to show other customers that it concerns a product from the States. A survey among French shoppers found that up to 70% of said they would look to replace American products with French or EU alternatives when buying groceries. In a poll of 2,000 UK consumers, more than half (52%) said they were less likely to buy American products now than 12 months ago.

Salling Group, the largest supermarket group in Denmark, was quick to introduce a new label for European products. The retailer wants to respond to customers who want to buy “local” and avoid American products. Its banners Bilka, føtex and Netto indicate with an asterisk on the electronic price label when the brand is owned by a European company. Meanwhile, Lidl introduced a new Danish private label brand called Madværket for a wide selection of Danish-produced foods.

Some retail experts say that there is an easy way for customers to buy what is almost certainly a European product: Buy private label. Supermarket own brands are owned by the chain and largely produced in Europe. Other experts warn against an escalation and point to the fact that labels on products should benefit the consumer, who is already bombarded with information. Time will tell whether the “Buy European” movement will gain traction.

Danish non-food chain accelerates expansion

Søstrene Grene had its strongest financial result in the company’s history in the latest financial year, according to its CEO, Mikkel Grene. The Danish company increased sales by 22% and profit went up 15%.

Its stores offer a wide assortment of home interiors, kitchen items, hobby articles, beauty, travel items, party supplies, gift wrapping, stationery, toys as well as seasonal items. Every week, new products land in stores. Prices are low, most products are sold under 10 euros.

The concept is different from other non-food discounters in that the atmosphere in the stores is special, focused on aesthetics and ambience, appealing to the customers’ senses. Goods are on wooden shelves and wicker baskets, with warm light and delicate colours. The layout draws the consumer into the depths of the store, while the sense of time is quickly lost. Almost all the items in the store are own brands.

After the strong results of the past 52 weeks, the company now wants to take the opportunity of the momentum and expand its network of over 300 stores to a targeted 500 stores within the next three years. The company operates stores and web shops in 16 European countries.

Countries, big brands strike out at popular Nutri-Score

Despite its widespread appeal, Nutri-Score has faced pushback in several countries, including Italy, Romania, Greece, Cyprus, the Czech Republic, and Hungary. Authorities in these nations argue that the system unfairly penalizes traditional products, such as those commonly found in the Mediterranean diet. Critics contend that Nutri-Score oversimplifies food evaluations by focusing on select nutritional factors, which can distort consumer understanding of a product’s overall health value.

In addition to governmental objections, major brands like Danone, Heineken, Unilever, and Arla Foods have expressed reluctance to adopt Nutri-Score on their product packaging. These companies argue that the algorithm used to calculate the scores doesn’t align with their national dietary guidelines, or that recent changes to the system have downgraded their products to lower categories, resulting in what they believe to be unfairly low scores.

Nutri-Score, a front-of-pack label (FOPL) system, uses a color-coded, traffic-light-like design to rate the nutritional quality of packaged foods based on their fat, sugar, salt, and calorie content per 100 grams or millilitres. A “Green A” signals the healthiest option, while a “Red E” represents the least nutritious.

Recent revisions to the Nutri-Score system have reclassified dairy and plant-based beverages. For example, solid yogurt, considered a meal food, is classified differently from drinkable yogurt, which is viewed as a beverage often consumed between meals, moving it from the general food category to the beverage category. This shift had a significant impact on product ratings, as the algorithm applies different nutritional criteria depending on the product category. As a result, certain dairy products that previously held high ratings of “A” or “B” dropped to lower ratings of “D” or “E,” largely due to their sugar content or the use of alternative sweeteners.

In the beverage category, only water maintains the top rating of a “Green A.”

Packaging at crossroads

The forthcoming EU Packaging and Packaging Waste Regulation (PPWR) is set to reshape the packaging landscape across Europe. The new legislation aims to drastically reduce packaging and packaging waste and will be implemented gradually starting mid-2026. It establishes ambitious goals for manufacturers and retailers, impacting both branded products and private label.

A turning point for packaging! A new era for packaging! Revolutionary! Game-Changing! Experts keep on finding new words to express what an immense change this law will bring. The final version of the law is expected to be published before the end of this year, officially setting the timeline for implementation. So, how will the PPWR impact the private label sector? The answer is clear: it will significantly alter how packaging is designed, consumed, and disposed of throughout the entire EU value chain. Businesses need to be ready.

As part of the EU Green Deal, the regulation has three core objectives: to reduce packaging waste, promote high-quality recycling, and establish uniform rules across all member states. While there was previously an EU directive on packaging waste, it allowed individual countries considerable flexibility. Now, with this regulation, standardized guidelines will apply across the board, with stricter enforcement.

To address these changes, PLMA will hold an in-depth conference on all aspects of packaging on 30 January 2025. The event will not only focus on the new PPWR legislation, but will feature a diverse range of packaging related presentations, covering topics such as private label packaging trends, innovation, creative design, sustainability, a look into the future, and consumer perception. It is a must-attend for anyone in the private label industry. For more information, click here.

Come and go in Everest Alliance: Aura Retail in, Super U out

In a surprising turn of events, Cooperative U, operator of the Super U supermarket chain, is set to part ways with the international purchasing alliance Everest, as well as the Epic alliance. The retailer joined the alliance only two years ago, partnering with the other members Edeka, Picnic and Jumbo. The split is reportedly due to internal disagreements among the partners, potentially around strategic approaches or negotiations. Everest negotiates purchasing prices for its partners with more than 50 multinationals. Epic Partners includes Edeka, Jumbo and Picnic, as well as Migros Group, Jerónimo Martins and Esselunga. Epic negotiates with major suppliers for top-quality conditions for international marketing campaigns.

Just days after Cooperative U’s departure was announced, Everest and Epic welcomed a significant new member: Aura Retail, a French food purchasing powerhouse. Aura Retail stated that it wants to negotiate the best pricing conditions with the biggest multinational manufacturers, thus allowing more advantageous prices for its customers. With Aura Retail now onboard, Everest is expected to rival the size and influence of Eurelec, a key alliance between E. Leclerc, Rewe, and Ahold Delhaize.

Meanwhile, Aura Retail, Everest’s new partner, recently published details of this new partnership forged between Intermarché, Auchan and Casino. The French alliance comprises five operational structures offering purchasing partnerships between the three groups for an initial period of 10 years. For food purchases, Aura Retail will be made up of three central purchasing units managed by Intermarché. For non-food purchases of national brands, two structures have been set up by Aura Retail and managed by Auchan. Private label is part of the portfolio of the alliance.

With the departure of Cooperative U and the entry of Aura Retail, Everest is undergoing a significant transformation. The evolving makeup of these international purchasing alliances reflects the increasingly complex and competitive nature of global retail. As large retailers seek to enhance their negotiating power with multinational suppliers, these alliances will continue to shift in response to both internal dynamics and external market pressures.

The inevitability of AI in retailing never more apparent

Artificial intelligence is increasingly being integrated across various functions within retail businesses. Carrefour recently demonstrated how it leverages AI to enhance its commercial offerings and optimize stock management, both in stores and warehouses. AI tools assist store managers in making data-driven decisions about product placement, quantities, and shelf arrangement. These algorithms consider factors such as location, weather, and population demographics, providing precise insights for decision-makers. Additionally, AI is now being used for pricing and promotions, tailored down to the store and product level. Data from loyalty cards or apps plays a crucial role, offering models real-time, customer-specific purchasing behaviour.

Tesco is another retailer harnessing the power of AI. It has announced plans to utilize AI to introduce a new initiative: using loyalty card data to encourage customers to choose healthier and more affordable alternatives. By analysing customer shopping habits, the AI will provide personalized product suggestions aimed at delivering greater value to shoppers.

Albert Heijn has introduced a new feature in its app, called "Scan & Cook," aimed at helping customers reduce food waste. The feature allows users to snap a photo of items in their fridge or pantry and upload it to the app. Using this technology, which will be further enhanced throughout the year, the app then transforms the ingredients into personalized, delicious recipes with just one click. This is one of the Generative AI applications that Albert Heijn has developed, implemented, and is now rolling out.