The Italian government has proposed a bill to introduce mandatory origin-labelling for all food products. The bill, which is yet to be passed, would require manufactures to list on the product label the geographical origin of ingredients.

'Victory for farmers and consumers'…

Ettore Prandini, president of the farmers’ association, Coldiretti, said that the initiative represents “a great victory for farmers and consumers”. It is also said to be supported by 96% of the Italian population.

However, Prandini is worried about the “uncertain and contradictory attitude” of the EU “regarding the obligation to indicate the origin on the label for eggs but not for egg products, for fresh meat but not for cold cuts, for fresh fruit but not for juices and jams, for honey but not for sugar”.

…As it proposes to increase local production

Origin-labelling is already compulsory for chicken, milk and diary products, pasta wheat, peeled tomatoes and concentrates and rice in Italy. However, this measure only applies to beef, eggs and honey at the EU level, after being first introduced in 2001.

The Italian government hopes the proposed bill will increase local production, provide greater options for customers and prevent fake Italian products from entering the market. It will also form working groups with individuals from the agricultural world, academia and trade associations.

Italy-based Finiper has signed a partnership agreement with electronics and house appliances distributer Unieuro. The partnership will see Finiper introduce 21 Unieuro shop-in-shops in its Iper hypermarkets.

Pilot projects launched in February 2018

The shop-in-shops were first tested in two pilots in Solbiate Olona (Varese) and Busnago (Monza Brianza), in February 2018. Since then, an additional seven corners have been launched in Gadesco Pieve Delmona (Cremona), Montebello della Battaglia (Pavia), Monza, Grandate (Como), Lonato del Garda (Brescia), Arese and Magenta (Milan). Five more shop-in-shops are expected to be opened in March 2019, with the aim of opening 21 by the end of the year.

Shop-in-shops to be managed by Finiper

The corners will range in size from 400 sq m to 800 sq m. They will be managed directly and independently by Finiper through a commercial affiliation contract. Finiper will, however, adopt the structures and layouts of Unieuro. Full-time staff, training, IT and logistics will also be provided by Unieuro.

Finiper’s purchasing director, Gabriele Nicotra, said it hopes the shop-in-shops will increase its offer to customers while making use of Unieuro’s expertise in the electronics sector. He added that the corners will help increase competitiveness in purchasing, assortments and promotions.

Retailers looking to allocate space to third parties

European retailers have increased their focus on reallocating hypermarket space away from the challenging consumer electronics and appliances categories. This has seen them dedicate more space to other non-food categories where they believe they can win or to grocery ranges, especially fresh.

The move to work with third party retailers in the category has seen a renewed focus from the likes of Carrefour, which is collaborating with Darty in France and Media Markt in Poland, and Tesco, who has been cleared to work with Media Markt in Hungary.

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Italy-based Conad saw its private label ranges generate a turnover of €3.5bn in 2018. The turnover was up 7% year-on-year and accounted for a quarter of Conad’s total sales.

Turnover increased by 3% to €13.4bn…

Conad said that its total turnover rose by 3% to €13.4bn in 2018, underlining the outperformance of its private label ranges. It also said it had a 22.4% share of the Italian grocery market at the end of 2018. CEO Francesco Pugliese said the performance was better than expected, considering the “worrying decline in consumption” in the country.

…Attributed to private label growth

The retailer attributes its performance to the development of its sales network and the success of its private label offer. Conad said its private label offer accounted for over 50% of the growth in Italy’s private label segment. An estimated 8.6m families frequently purchase Conad-branded products.

In 2018, the retailer spent €38m on marketing and communication for its private label brands. It also tried to optimise the production process of its ranges at four main production facilities. It said its private label products are now produced in a more environmentally-friendly way, which has contributed to a 9.5% decrease in carbon emissions.

Three levers for private label growth

Conad’s private label range comprises more than 3,600 SKUs, of which 1,400 were created or modified in 2018. New lines include Conad Alimentum, Conad PiacerSi, Conad Essentiae and Conad Baby.

Francesco Avanzini, Conad’s general manager, said it would continue to use three strategic levers to grow its private label ranges: by focusing on continuous convenience, with its Bassi & Fissi brand; on premium, with Sapori & Dintorni and Verso Natura; and on emerging shopper needs, like health and well-being, with PiacereSi.

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