PLMA International launches survey of retailers, manufacturers to gain insights on PL growth

PLMA International in Amsterdam has launched an online survey of European member manufacturers and retailers. 

Consisting of about 30 multi-part questions, the survey is available in multiple languages and is being conducted for PLMA International by SurveyLab.

Topics include the relationship between manufacturers and retailers, the influence of today’s environmental and societal requirements on the supply chain, product innovation and development and factors contributing to the growth of private label throughout Europe.

PLMA International is seeking to collect insights that can help it improve the annual World of Private Label Trade Show and other programmes and expand business opportunities for the entire private label industry.

A comprehensive report on the findings will be distributed in the fall and the study will be a featured subject of PLMA’s Private Label Summit, to be held October 29-30, in Milan.

Carrefour brings its Brazilian hard discounter to France

After a delay of over a year, Carrefour’s Brazilian chain Atacadão is arriving in France. The Carrefour franchise will open on 20 June in Aulnay-sous-Bois. The Atacadão chain is interesting because it is a true hard discounter, with no-frills stores and products on pallets sold at knock-down prices, between 10 and 15% less than in other supermarkets.

The first store in France measures an area of 10,000 square meters and will carry up to 15,000 SKUs. It targets both professionals and end consumers. Carrefour had to overcome objections from municipalities and other players in the field that stalled the launch in France, announced some one and a half years ago.

In Brazil, the chain counts no fewer than 250 stores and is immensely popular among consumers. The retailer says that in France, it wants to adapt the format to the more sophisticated French clientele. Amongst others, there will be more emphasis on fresh products and a special organic department.
 

What's behind all these packaging changes?

Have you seen soup in bags, sauces in cardboard, or beans in packs in your supermarket? In Scandinavia, known to be a trendsetter in more environmentally friendly packaging, the trend is ubiquitous.

The canned department has long remained the same, and it is not the most outspoken in the supermarket. Some think it is a rather dull, old-fashioned section. But there is a movement that seems to play into making the department more attractive, addressing a younger public.

Several companies are making a move towards changing the packaging of conserves into cardboard. This has a lower CO2 footprint and requires less gas in production. In addition to these advantages, there are also lower transport costs, and the new packs require less space in the stores.

Companies in the sector are eager to make use of the new materials and produce modern, attractive and less heavy packaging and appeal to a new target group, as well as inspire other consumers to come back.

For Lidl security of supply is paramount

We’ve reported before how Lidl set up its own shipping company, Tailwind, a few years ago, much to the distress of the container ship industry, and viewed with skepticism by other retailers because of the high costs.

While the discounter started with three ships it has been expanding the fleet, with nine ships now in operation, some owned, some chartered, and more being added. It demonstrates Lidl’s ambition and trust in securing its own supply chains.

The ships sail between three ports in China, a port in Bangladesh and Sri Lanka, and three ports in Europe: Barcelona, Koper (Slovenia) and Moerdijk (Netherlands). From the European ports, the goods are transported by truck, but mainly and preferably, by train and inland waterway vessels to their various destinations.

In Germany, Lidl has alerted its freight forwarders that it is pushing for more electric vehicles for heavy goods transport. The company says its aim for electrification is the biggest transformation in transport in decades. In order for the change to e-vehicles to work, freight forwarders, truck manufacturers, DCs and retailers need to work together and change the infrastructure, provide charging stations, educate drivers, and implement new energy supply systems for the electric trucks.

The retailer is also expanding its investments in production. In the past years, Lidl’s parent company Schwarz has been buying water and nuts suppliers, chocolate and coffee producers, bakery and ice cream companies, all to “secure and maintain product availability”, according to the company. 

Aldi investing in produce supply

Aldi has concluded a 20-year agreement with an apple grower in the UK. While the farm has been supplying the discounter with apples for eight years, in the new deal it is becoming Aldi’s sole provider of UK apples.

The long-term arrangement gives the farmer an opportunity to invest in new orchards across the country in the coming years. For Aldi, after Tesco the second biggest seller of apples in the UK, it guarantees a steady supply of a mix of homegrown Gala and Braeburn apples.

A twenty-year contract is considered a game-changer in the sector, long-term agreements are rare and would never span more than six years.

In Germany, the discounter has a different approach towards apples: last autumn, it launched an exclusive own label apple variety, called “Aldiamo”. The apple was developed with a university of applied sciences and a breeding company and grows in the north of Germany, just outside Hamburg. The apple is available in Aldi Süd’s 2,000 odd stores in Germany.

Aldi has also launched an exclusive strawberry variety in Germany. The new item was developed by a fruit specialist and took six years of research and testing before being presented under the name of “Aldina” as part of Aldi’s premium range “Kleine Schätze”.

Clearly the discounter bets on the national produce card. While supporting local farmers gives the company a positive and caring appearance, these initiatives pay off in that they ensure a more or less guaranteed supply, which they believe is worth the investment.


 

AI-related retail news

Morrisons is employing thousands of AI-powered cameras across its UK stores by the end of the year, after trials showed they significantly improved availability and increased the efficiency of staff.

Edeka, Germany’s largest grocery retail chain, is deploying AI-powered age-verification technology at one of its micro locations at Stuttgart Airport in Germany. Age verification is needed roughly 22% of the time at stores.

Tesco has announced it is launching the second phase of its Fit for Growth range review, which will use AI-driven technology to develop location-specific ranges for its Express stores.

Aldi puts a voice developed with the help of artificial intelligence at the center of its first campaign with a new advertising agency. The voice in the new advertising campaign was developed by AI based on the voice of Aldi employees.

New labeling rules from EU

To keep up with the changes on the EU food market and enable consumers to eat healthy, the European Parliament approved a revision of existing rules on the composition, labelling and production of honey, fruit juices, jams, marmalades and milk.

Under the new rules it will not be enough just to indicate if honey comes from the EU or not. It will be obligatory to list the countries of origin, in descending order, together with what percentage of the product comes from them.

Minimum fruit content in jams will increase, which means there will be less sugar in them. Jams will have to have at least 450 grammes of fruit content per kilogram (before it was 350 grammes), while high quality “extra jams” will have 500 grammes of fruit content per kilogram (before it was 450 grammes). The term marmalade is currently used only for citrus jams, but with the new rules, it will be possible to use it for any fruit jams, in line with local traditions.

The EU will authorise the production of dehydrated milk products with reduced level of lactose. Dehydrated milk covers various types of milk that have reduced water content and may even be in solid form.

Getir departs Western Europe, US to focus on Turkey

Getir, the Turkish delivery platform once valued at €11.2bn, will pull out of all its European markets – Germany, the UK, and the Netherlands – and the US, the company confirmed. The company said it will focus on its core market in Turkey.

After a boom and rapid expansion during the COVID-19 pandemic, the company – like all other online quick delivery companies - saw more and more consumers returning to physical shopping. The retailer’s high profit margins fell, making it difficult to meet costs. Quick delivery companies have also had to cope with a lot of opposition from residents around their dark stores and subsequently from municipalities. Earlier, the company waved goodbye to France, Spain, Italy and Portugal amid the growing difficulties.

Walmart launches massive private label line

US grocery leader Walmart shook up the industry this month when it announced that it is rolling out a new private label premium food line. Under the name of Bettergoods, the company says it is its largest private label release in two decades. “Today’s customers expect more from the private brands they purchase – they want affordable, quality products to elevate their overall food experience. The launch of bettergoods delivers on that customer need in a meaningful way,” said Scott Morris, Walmart’s senior vice president of private brands, food, and consumables in a statement.

The premium line seeks to appeal to younger consumers who are not loyal to grocery brands and want chef-inspired foods that are less expensive. Most products of the new brand are under $5. The packaging was designed in a mix of colours for a more premium look. The brand name bettergoods can be found as a single word in all lowercase letters and a custom typeface to look approachable and friendly. “With a vivid and colorful new brand identity that has the looks, messaging, and product offerings of more premium competitors, the goal,” says Walmart vice president of creative and design David Hartman, “was to create a brand that’s “as desirable as the leading national brands.”

Bettergoods products typically fall within three categories - culinary, plant-based, and “made without”. Walmart expects to have 300 products in the line by the fall, including frozen foods, dairy items, snacks, beverages, pastas, soups, coffee and chocolate.

Persistent inflation has made American shoppers cost-conscious, pushing the popularity of private label. According to PLMA, more than 1 of 5 grocery items sold in the US is a private label. In 2023, total private label dollar sales were USD236 billion, up by about USD10 billion, an all-time mark. Dollar sales rose 4.7%, vs plus 3.4% for national brands. Private label dollar share was 18.9%, ahead 0.2 points, likewise a high. Unit sales were nominally even, off 0.1%, vs national brands which shed 2.8%. Private label unit share was 20.7%, up 0.5 points and another record.  

Private label in the US has continued to shine in 2024, recording unprecedented highs in both unit and dollar shares during the first four months. Dollar share was 20.5% and unit share was 23.1%, as of April 21. The new share standards came on the strength of private label’s outstanding performance versus national brands during the period. Private label dollar sales were up 2% vs a gain of 1.1% for national brands, while in unit sales the difference was even greater, as private label improved by 2.5% while national brands fell 1%.

French retailers forge long-term alliance

Three major French retail groups announce a purchasing alliance with a remarkably long duration: for up to ten years, Intermarché, Auchan and Casino will jointly negotiate with major brand manufacturers.

Last December, Intermarché and Auchan had already stated that they were in talks to set up a purchasing alliance for food and non-food. Now they are also including Casino, the group from which they acquired several hundred super- and hypermarkets earlier this year. The new alliance, which will immediately become the largest in France, aims to “maintain and develop long-term partnerships with the agricultural world and French industrial players”.

Intermarché will take the lead for negotiations with big brand producers such as Danone, Nestlé, or Coca-Cola. The cooperation already established between Intermarché and Auchan for private label products will now also benefit Casino. In non-food, Auchan will negotiate with branded manufacturers for the three partners.

The three retailers stress that their cooperation will respect competition laws and regulations. Each of the partners will retain full independence in terms of commercial, pricing or promotional policies, and for the development of store networks.