Private label innovation in Europe

Harriet Cohen
Senior Retail Analyst

Date : 18 October 2018

Retailers continue to invest in private label, with recent enhancements across different tiers including entry level, premium, organic and ethical ranges. We round up six of the latest innovations across the region, featuring activity from Tesco, Coop Sverige, REMA 1000, Jumbo, Carrefour and Sonae MC.

1. Tesco unveils Jack’s private label range in new discount format

Tesco has introduced the Jack’s private label range, exclusively available in its new discount format, which launched in September 2018. The first store to open stocks 2,600 SKUs, 70% of which are private label.

The range has been developed in partnership with 350 existing Tesco suppliers and includes a number of innovative products. It is pitched at a similar quality specification to the ‘Exclusively at Tesco’ entry level private label tier.

Want to know more about the Tesco’s new discount concept? Retail Analysis subscribers can click here to access our exclusive store visit report.

2. Coop Sverige re-launches organic range

Elsewhere in the Nordics, Sweden-based Coop Sverige is re-launching its Änglamark organic private label range, with new products being sold later this month across all 650 stores and online.

Source: Coop Sverige

The initiative will see ‘a vastly expanded range, product innovations and improved labelling’.

Commenting on the development, Marketing Director Björn Larsson said, ‘With new Änglamark, we want to make it even easier and better for our customers to live a sustainable life’.

A press release from the retailer highlighted that since its initial launched in 1991, Änglamark now accounts for around half of Coop’s organic sales. More widely, Coop’s sales share of organic products is over 10%.

Retail Analysis subscribers can find out about how grocery retailers are executing organic in-store in established markets by accessing our exclusive insight presentation.

3. REMA 1000 adds ‘often good after’ to best before labels

In neighbouring Norway, discounter REMA 1000 is adding ‘often good after’ to its private label products in canned food, eggs, dairy and dry foods. The exception is child and animal food where the consumer is particularly concerned with quality and safety’.

 This follows a successful trial where the retailer added ‘often good after’ to its private label eggs.

REMA 1000 cited statistics that in Norway around 355,000 edible tons of food waste are thrown away annually, with consumers accounting for around 60% of this.

Commenting on the development, Quality Director Martina Rabsch said, ‘The goal is that this will make it easier for customers to reduce food prices in their own homes. Items with the best before date are in most cases completely safe to eat after the date has passed and we hope the supplement will inspire customers to use their (common) sense before considering whether the product should be discarded’.

Source: REMA 1000

4. Jumbo expands La Place range

Meanwhile in the Netherlands, Jumbo has introduced more La Place products as it celebrates its private label tenth anniversary. Jumbo acquired the foodservice brand La Place in 2016 and has sold products exclusively since 2017. More widely, Jumbo’s private label range now includes 9,000 products.

Commenting on the development, Buying & Merchandising Executive Director Olaf de Boer said, ‘In the coming years, we will continue to build on the success of the Jumbo house brand, by developing new products that will continue to surprise our customers and that are fully in line with the latest food trends’.

Source: Jumbo

5. Carrefour Belgium widens Fairtrade private label product range

In neighbouring Belgium, Carrefour has introduced new organic Fairtrade products, bringing its total number of Fairtrade products sold to 113 items. The product launch was linked to Fairtrade Week 2018, which ran from October 3rd to 13th.  All Carrefour Sélection coffee is also Fairtrade, while the retailer also stocks Fairtrade bananas and jam.

6. Sonae MC's Continente introduces 300 new products with more to come

Elsewhere in Europe, at the Open House by Continente event, Sonae MC's Commercial Director for Private Label advised that the retailer had launched 300 new private label products so far this year.

Going forwards, it will prioritise its Equilíbrio (balanced diet) and Seleção (premium fresh) ranges. These ranges account for 8% and 4% of private label sales respectively, although both have enjoyed double digit growth. Meanwhile, the retailer's organic private label range will be extended from 50 products currently, with the anticipation of triple-digit growth.  More widely, private label accounts for 30% of Continente's sales.

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