OVERVIEW OF PRIVATE LABEL IN EUROPE
& UPDATE ON PLMA 2009
Declan Fennell, Bord Bia Amsterdam
22 April 2009
AGENDA
• Private Label Perception – yesterday, today, tomorrow
• Private Label in Europe
• Private Label - The Netherlands, Germany & Sweden
•
PLMA 2009
Private Label – yesterday
YE LLOW
PACK
WEE TABIX
OFFER
Back then the proposition was on VALUE ONLY!
Learning from the principles of
brands
A powerful brand is much more than a
trademark it is a trustmark!
Larry Light
McDonalds US
Private Label..
…. today
Private Label. …. Interpreting consumer trends
PRIVATE LABEL PORTFOLIO
Value
Free From
Kids
Equivalent
Private
Label
Segments
Healthy
Eating
Organic
Fairtrade
Source: IGD
Premium
Private Label v’s Brands
How similar are private labels to traditional
brands?
Source: Private Label from a Consumer Perspective, pulse report 2006. The Hartman Group Inc.
BORD BIA
PERISCOPE ‘08
I feel the Private labels brands are just as good as branded
68%
63%
67%
56%
51%
% agree strongly / slightly
France
Sweden
Spain
Germany
Netherlands
Private label, share of sales, by category, in
Europe (%), 2006-2011
From: Promoting Brand Simplicity in Food and Drinks . Source: Business Insights
PRIVATE LABEL – tomorrow
+€207bn
550
527
50% value growth by 2012
Private Label Market Value (€bn)
500
468
450
421
400
382
349
350
320
300
250
Source: IGD Research
20
12
F
F
11
20
20
10
F
F
09
20
08
20
20
07
200
- Private Label In Europe -
EUROPE ‘HOME’ OF PRIVATE LABEL
North America = 15% of sales
LatinAmerica
America==c2%
2% of
Latin
ofsales
sales
Europe = 23% of sales
AsiaPacific
Pacific==c4%
4% of
Asia
ofsales
sales
TOP 20 RETAILERS: PRIVATE LABEL
PENETRATION
Private label is gaining
in importance for
virtually all the world’s
leading grocers, with
shares going up…
2008f (%)
2007e (%)
Increase
No Change
Decrease
Note: Ranked by percentages;
- excludes
f - pharmacy;
forecast; e f–-estimate.
retailers’ total*sales,
2008;pharmacy;
* - excludes
forecast; e – estimate.
Source: Planet Retail Ltd - www.planetretail.net
…but discounters are
the true private label
experts in terms of
sales shares.
RECESSION HELPS
DISCOUNTERS LEADING THE
CHARGE
25% growth in store #
C
er
la
n
d
40
30
25
22.0
20
15
Source: IGD, ACNielsen
19.7 18.4
16.6 16.4
14.2 13.5
It a
ze Po ly
ch rtu
Re ga
pu l
bl
Ic ic
el
an
d
PL share 2007 (%)
45
G UK
er
m
an
Fr y
an
ce
I
r
N
et ela
he n d
rla
nd
s
Sp
ai
B
n
e
Lu
lg
xe iu
m m
bo
A urg
us
tr
a
Sw lia
e
D d en
en
m
a
N rk
or
w
a
A y
us
t
Fi ria
nl
an
H
un d
ga
r
Sl y
ov
ak
Sw
itz
PRIVATE LABEL VALUE SHARE 2007
50 47.0
42.1
38.4
35
29.2 28.9 28.2
27.6
25.0 25.0
12.7 12.1 11.5
10.6 10.4
10
5
0
Private Label Categories from 21 Countries
Source: The Nielsen Company, 2008.
Source: The Nielsen Company
- Private Label The Netherlands, Germany & Sweden
Private Label Share % Netherlands
100
100.0 100.0
100.0 100.0
2006
2007
90
80
% Private Label
70
60
50
40
36.2
37.9
30
20.5
20
22.5
24.8
25.4
19.0
20.5
10
7.7
7.5
0
Lidl
Aldi
Source:
Albert Heijn
52 w/e December 07
Schuitema C1000
Super de Boer
Plus (Superunie)
Koopconsult
Albert Heijn PL
….. …Chilled Ready Meals
THEN
Albert Heijn PL
….. …Chilled Ready Meals
THEN
NOW
Private Label Leading Category Innovation
…… Kies & Kook ………
Private Label Share % Germany
* Plus is now part of Edeka Group and is being converted to Netto.
Source: Planet Retail 2009
Source; Nielson, 2008.
Private Label Share % Sweden
50
45.9 (44.0)
% Private Label
40
30
21.3 (23.1)
20
20.2 (20.4)
12.6 (12.5)
10
0
ICA
Source:
52 w/e December 07
Coop Norden
Axfood
Others
Note: Total may not add up to 100% due to rounding
2006 figures shown in brackets
PLMA 2009
PLMA, Amsterdam, RAI
Exhibition Centre
• International Show
- 1700 exhibitors
- 8,000 visitors
•
Key European Markets
• Irish Presence spread across a number of
categories
–
–
–
–
–
–
Frozen convenience
Alcohol
Beverages
Bakery
Confectionary
Dairy
PRIVATE LABEL
• PLMA & Irish Companies … making our presence know
• Canvassing of buyers thru the Bord Bia network of European offices;
London, Amsterdam, Paris, Frankfurt, Madrid, Milan and Dublin HQ
• Guaranteeing you a minimum of 5 Buyer meetings
• PLMA Matchmaker
• Your support is needed in identifying/recruiting of buyers
• Presentation, focus & follow up is key
PLMA Amsterdam Seminar
Monday, 25 May 2009 14.00 – 16.00
14.00 – 14.40
The Economy- Navigating the downturn. Where to play
and how to win.
Speaker: Erik Nanninga, Partner, Industry Leader
Consumer Business, Deloitte
14.40 – 15.20
New Product Development
Case study: Superquinn . Speaker: Bruce Langlands,
Head of Product Development, Superquinn (Ireland)
15.20 – 16.00
Sustainability -Sustainability: are consumers buying it?
Speaker: Birgitta Kramer, Senior Advisor Sustainability,
PriceWaterhouseCoopers
•
THANK YOU