Private Label:
Market Overview
Innova Market Insights
August 2010
Where are the Private Label opportunities?
2
Where are the Private Label opportunities?
 In-line with Health & Wellness Trends
 Innovating in Niche Areas
 Matching Competitors
 Pushing Premium Boundaries
 Knock-offs and Price Comparisons
3
In-Line with
Health & Wellness Trends
4
Global Growth: Organic-> Natural-> Traditional-> Sustainable




There is growing trend in the food industry for all things “natural”
Consumers demanding natural-> healthy
Organic lends itself to the natural trend
Traditional farming methods:
–
–
–

without pesticides
more natural food
sometimes more labour intensive - demands premium pricing
Sustainability & Environment:
–
traditional methods more environmentally friendly
Claims
North America
West Europe
% Change
% Change
2007
2008
2009
(2007-2009)
Health launches
2007
2008
2009
(2007-2009)
Health launches
Natural
20.2%
23.6%
25.2%
+5.0%
8.7%
10.8%
11.3%
+2.6%
No Additives/
Preservatives
12.7%
15.2%
16.2%
+3.5%
24.8%
32.4%
35.2%
+10.4%
5
Health Messages are Everywhere
6
Company Launches Dominated by Health Claims
Health Claims –
% Product Launches
2008
2009
% Change
Danone
77.1%
78.3%
+1.2%
Nestle
45.3%
48.0%
+2.7%
General Mills
56.8%
63.0%
+6.2%
Kellogg
57.1%
65.2%
+8.1%
Health Claims –
% Product Launches
2008
2009
% Change
Marks & Spencer
42.4%
67.0%
+24.6%
Carrefour
49.3%
39.4%
-9.9%
Albert Heijn
82.0%
78.8%
-3.2%
Safeway
42.6%
47.3%
+4.7%
7
Private Label Mainstream Organic
Switzerland, COOP
France, Monoprix
UK, Waitrose
Germany, Rewe
Netherlands,
Albert Heijn
France, Carrefour
Switzerland, Migros
UK, Marks & Spencer
8
Organic Differentiation

Dutch supermarket Albert Heijn have launched a “puur and eerlijk”
(pure and honest) brand. These products are produced, grown or
sourced with extra care for people, animals, nature or the
environment. AH pure & honest is comprised of the following
product categories: AH pure & honest organic, fairtrade,
sustainable catch (fish), free-range meat and ecological cleaning
products.
AH Puur & Eerlijk Fairtrade Rooibos met
Specerijen: Pure and Honest Fairtrade
AH Puur en Eerlijk Duurzame Visvangst
Rooibos Tea with Spices
Variatie met Broccoli en Kaas: Fish Fillet
with Broccoli & Cheese
AH Puur & Eerlijk Biologische
Macaroni Grande: Pure & Honest
Organic Macaroni Grande
9
Increase in PL Launches with Ethical Claims
10
Offering Sustainable Choices

Sustainable farming practices followed for private label products.
11
The Importance Of Cleaner Labels

With the natural trend, there are more and more products with claims
stating, for example “no artificial colors, flavors or preservatives”. This
type of claim is being used as a selling point to consumers and is boldly
displayed on the front of the packaging.
+1.8%
+0.6%
-1.4%
12
Total Transparency For Natural Appeal
Only
natural
ingredients
Netherlands: AH Albert Heijn Alleen met Natuurlijke Ingredienten
Hollandse Gehaktbal met Spercieboontjes: Dutch Meat Ball with
French Beans and Potatoes, in Gravy Sauce
13
Sense of Simplicity: Back to Basics

Complex and stressful times are calling for simpler products, which is why
Sense of Simplicity tops our trend list for 2010

The downturn is making people nostalgic for simpler times, and simpler
foods. The interest in “back to basics” has driven interest in natural and
clean-label foods

More natural ingredients are on the rise, including natural sweeteners
extracted from source such as:
– apple
– agave
– maple syrup
14
Sense of Simplicity: Homemade
Using the word “homemade ” or “homestyle” in the promotion of new
products is on the rise
15
Real Authenticity: The Face Of Europe Is Changing

It is no longer enough to simply create a product with a regional
positioning: the product should be based on ingredients from that region
and ideally even be produced there

With the growing number of immigrants and a rising interest in
authenticity, regionally-produced foods will undoubtedly be on the rise

Ethnic and exotic products have become more specific. Mainstream
Indian style products shifted from being merely Indian, to indicating the
region of India where the product originated
16
Real Authenticity
UK: Sainsbury's Taste the Difference Israeli Couscous
& Nanjing Black Rice. A blend of Israeli couscous, black
rice, puy lentils, edamame beans, and red peppers, with
a chilli and soy dressing.
UK: Marks & Spencer Messicani. Authentic
Italian pasta, made and air dried in the Italian
Alps by the Felicetti family, using selected
Italian wheat and a bronze die for a rough
texture that picks up every drop of sauce.
17
Inherent Nutrition: Keeping It Simple With Ingredients
France: Casino Ondilege Mousse Aux Fruits PecheMangue: Yogurt with Peach & Mango Mousse Flavor.
Contains 50% fruits. These dairy specialties contain
sugars which are naturally present in milk and fruit.
0% fat. 0% sugar.
Netherlands: AH Albert Heijn Water &
Fruit Rood: Fruit Juice with Red Fruit &
Water. With 9 sorts of fruit.
18
Healthy Soil, Healthier Vegetables

Selenium enhanced
soil could hold great
potential for better
health.
UK: Marks & Spencer Young Super
Spinach. Young super spinach grown in
selenium enhanced soil. Fresh and
prepared. Rich in vitamin A. Natural
source of calcium. Grown in selenium
rich soil. Selenium is an essential
mineral which is important for a healthy
immune system. Washed, prepared, and
ready-to-cook.
19
Offering Healthy Alternatives
South Africa: Woolworths Slimmer's Choice Kerala
Chicken Curry with Basmati Rice. Low fat and kilojoule
controlled. Eat well. This product represents a better
choice for dieters. It is low in fat and kilojoule
controlled, a convenient, satisfying and delicious way
to lose weight.
USA: Archer Farms Simply Balanced Hawaiian
Style Veggie Patties. Hawaiian style frozen whole
grain veggie patties made with a brown and wild
rice blend, bell peppers, mangoes, pineapples
and coconut milk. Simply nutritious. Simply
delicious. Contains 100 calories per serving.
Contains 2.5g fat per serving. 0g trans fat.
Contains 4g sugar per serving. Contains 5mg
sodium per serving. No artificial flavors or
synthetic colors. Contains 6g protein per serving.
20
Healthy Innovation

Private label offers consumers many healthy, innovative choices.
USA: Trader Joe’s Shortbread
Blueberry Bites with Almonds
and Omega-3’s
Brazil: Carrefour Viver Light Quiche
Integral Legumes: Light Wholegrain
Quiche with Vegetables. "Viver" is a health
line product from Carrefour brand. 26%
less calories. This is a microwavable
product. 63% less saturated fat. Source of
fiber.
UK: Aldi Optifit Liquid Breakfast
Probiotic Yogurt Drink with Apple
and Mango Flavors with Added
Vitamin C
21
Fresh Daily Offerings

Combining freshness, health and convenience on a daily basis.
22
Innovating in Niche Areas
23
Innovating By Addressing Allergies


Private Label has led the way with their “free from” ranges.
Recognised a gap in the market. Gluten free product launches in
particular, have shown significant growth in recent years.
France: Auchan Mieux Vivre Spaghetti A La Farine de
Mais: Spaghetti Made From Corn Flour. Gluten free.
UK: Sainsbury's Freefrom 5 Muesli Bars.
Five gluten, wheat and dairy free muesli
bars with mixed dried fruits, flaked almonds
and hazelnut nibs.
24
Catering For Individual Needs

Identifying demand and supplying the solution.
Cooking For One
Netherlands: Albert Heijn 1 person
Japanese Sukiyaki Wok Dish
Carb-Conscious Dieters
USA: Kroger Carb Master Strawberry and
Banana Flavored Yogurt. Vitamins A and D and
calcium added. Net carbs 3 grams.
25
In-Store Bakery Innovation Booms
Hungary: Fitberry
Vorosszolos Kenyer:
Bread Loaf with Red
Grape Concentrate and
sunflower and caraway
seed. The red grape
extract contains
flavonoids which has a
significant antioxidant
effect.
Germany: VollkornBrot. Wholemeal bread
with sunflower seeds.
UK: Marks & Spencer Green Olive Ciabatta Rolls
Netherlands: C1000
Melkbroodjes. Milk
Bread for Children
USA: Safeway
Premium Wheat
Hot Dog Buns
26
Wowing With Flavours

Unique flavours represent an opportunity to stand out from the
rest on the shelf.
France: Auchan Dark
chocolate with violet.
Greece: AB Tangerine
Sanguine Carrot
Juice
USA: Trader Joe's Rice & Bean
Chips with Adzuki Beans
USA: Safeway Select
Mandarin Orange
Naturally Low Fat Sherbet
27
Innovate By Flavour
Netherlands: AH
Albert Heijn
Kauwgomballen
Smaak Thee:
Herbal Tea with
Chewing Gum
Flavour
Canada: President's Choice
Ice Cream Shop Flavors
Banana Split Ice Cream
Australia: Woolworths Chicken
Sausages: Mango & Sweet Chilli
South Africa: Woolworths
Pomegranate Flavoured Turkish
Delight
28
New Texture & Flavour Experiences
France: Casino Ondilege Mousse Aux Fruits Peche-Mangue:
Yogurt with Peach & Mango Mousse Flavor
UK: Snackrite Be Light Satin Crunch Thai
Sweet Chilli Flavour. Six packs of Thai sweet
chilli flavored crisps. 70% less fat. Less than
2% fat per pack. Only 80 calories per 20g
pack. No artificial color, flavors or
preservatives. Suitable for vegetarians.
Belgium: Delicieux
Aardbeien sorbet
Sorbet Fraises:
Strawberries Sorbet.
Strawberries sorbet,
a refreshing sorbet
for one intense
strawberry
experience.
29
Exclusive Ingredients
Offering the consumer
something extra with
special ingredients.
Canada: President's Choice
Dine-In Tonight Porcini and
Truffle Tortelloni. A 340g box of
frozen delectable porcini and
truffle tortelloni. The exquisitely
rich tasting filling contains wild
porcini mushrooms and truffle
oil, tucked inside delicate eggpasta pillows. Good for 2
servings.
UK: Optifit Multi Fruit 8 Probiotic
Yogurt Drinks. Eight bottles of
prebiotic and probiotic multi fruit
flavored yogurt milk drink with
oligofructose, l-carnitine, and
vitamins C, E, and B6.
Australia: Specially Selected
Mountain Muesli. Muesli
with treacle, honey,
almonds, pepita seeds, and
raisins.
30
New Product Ideas
USA: Market Pantry
Mozzarella Double Twist
String Cheese. Twelve
individually wrapped
mozzarella double twist
(yellow and white) string
cheese. Great for snacking.
South Africa: Woolworths Breakfast
Fruit Booster. Ready-to-eat dried
bananas, apricots, and raisins in a
plastic bag.
UK: Tesco Apple & Blackcurrant Juicy Water.
75% fruit juice + 25% water = 100% natural.
Australia: Coles Hot Smoked
Salmon Portion
31
Plain Fruit & Veggies Can Stand Out
France: Carrefour Carottes Rapees Grated
Carrots. Contains natural beta-carotene.
South Africa: Woolworths
Organic Easy Peelers
32
Packaging Advantages Which Stand Out
UK: Sun Quench Fruity Shots Orange. Six
bottles of orange flavored drink with squirty
sports cap. With added vitamins. No
artificial colors or flavorings. Suitable for
vegetarians. 10% fruit from concentrate.
Netherlands: Plus Tuinerwten Extra Fijn
Vriesvers: Frozen Extra Fine Fresh Garden Peas
in a cardboard box with see-through aperture.
33
Speedy Step-by-Step

Accommodating single
person households with
cooking for 1 dishes.
Netherlands: AH Albert Heijn 1 Persoons Wok Schotel
Japanse Sukiyaki: Stir & Fry Meal Japanese Yukiyaki.
Ready to stir and fry Japanese sukiyaki meal with
chicken breast, white rice, Chinese cabbage and
sauce, separately held in a PET dish.
With ingredients ready prepared and
simple step-by-step instructions, the
consumer can have a freshly cooked
meal from the wok in not much more time
than a microwave ready meal.
34
Big Idea: Small Serves

“Small meal small salad small soup” is a range from AH which
includes ready salads, ready meals and soups, all in small servings
(280g).

Can be consumed for snacks or main meals.
AH Albert Heijn SmallMeal SmallSalad SmallSoup
Beef Japanse Teriyaki - Japanese Teriyaki Meal
35
So Easy With Steaming
Microwave
750W 5 ½ minutes or
1000W 4 ½ minutes
with innovative steam
valve.
Steaming is associated
with healthy cooking.
Netherlands: AH Albert Heijn Stoommaaltijd Tilapiafilet
Kormasaus - Steam Dish Tilapia Fillet with Korma Sauce.
Contained in a special plastic microwave dish, with a
unique steam valve. Ready to heat in microwave.
36
Clever Use Of Secondary Packaging
The steam valve
which is unique
to the product is
highlighted with
a clever aperture
in the secondary
package, drawing
the consumer’s
attention to it.
France: Auchan dos de Hoki-Hoki with Potatoes
37
Secondary Packaging Colour

Using secondary packaging to convey the meal theme.
UK: Waitrose Crab & Chilli Linguine. Prime Scottish
crab dressed in a sunblush tomato and chilli oil, served
on a bed of egg pasta in a plastic bowl held in a
cardboard sleeve.
UK: Sainsbury's Espana Paella. Spiced rice
seasoned with smoked paprika, garlic and white
wine, mixed with red peppers, chorizo, chicken
and prawns.
38
Sub-Branding To Convey Message
UK: Sainsbury's Be Good
To Yourself Reduced Fat
Cherry Cheesecake
Australia: Woolworths Naytura
Rice & Corn Chips: Sweet Chilli &
Sour Cream Flavor. Suitable for
vegetarian. No added artificial
colors, flavors, or preservatives.
Gluten free.
UK: Waitrose
Cooks'
Ingredients.
A Measure of
Italian Cut
Mixed Peel for
Baking
Australia: Coles Market Place
Australian Ginger Paste
39
Seasonal/Limited Edition

Offering the consumer a unique flavour and experience for a
limited time.
South Africa: Woolworths Limited
Edition Moroccan Lamb & Lentil
Soup
Netherlands: AH Albert Heijn
Seizoens Vla Appel-Kaneel: Apple
Cinnamon Custard
USA: Publix Premium Limited Edition
Monkey Business Banana Ice Cream
40
Private Label Seasonal Launches
41
Private Label Profiting From Upcoming Events
South Africa: Woolworths Soccer
Champion Shapes Pasta
South Africa: Woolworths England and Argentina
Money Box World Cup Soccer Selection Jellies
42
Novel Niches
UK: Sainsbury's Football Boot Money Bank
with Foiled Milk Chocolate Balls
UK: Waitrose Mini Meringue
Shells
UK: Marks & Spencer Risotto with Garden
Vegetables. A plastic bag of authentic
risotto mix with tomatoes, garlic, aubergine,
courgettes, red peppers, and green peppers.
Canada: President's Choice High
Protein Ultra Shake Meal
Replacement: Vanilla Flavor. High
protein. Lactose free. Excellent
source of calcium. Contains 24
vitamins and minerals. 50% more
protein than PC Ultra Shake Meal
Replacement. Provides all the
nutrition of a complete meal.
43
Matching Competitors
44
Tesco Competes With Discounters

At the end of 2008 UK
retailer Tesco launched a
new range of 350 products
under new discount brands
in 10 categories to
compete with Aldi.

Similar packaging and price
scales to Aldi products.

Tesco also cut prices on
existing Tesco and branded
products.
Tesco or Aldi?
45
Carrefour Fights Back in France

Carrefour has launched a new range
of 400 low cost food and non-food
items and is promoting them via a
dedicated Carrefour Discount website.

The launch of 'Carrefour Discount' is
the company's latest initiative to
defend itself against falling spending
from the increasing cost-sensitive
consumer.

As well as providing product
information on each of the 400 items
in the Carrefour Discount range, the
website provides low cost recipe ideas
and explains in detail its quality
promise.
46
Carrefour Goes For Clean Look

www.carrefourdiscount.com is a dedicated website to promote its
new range of low cost own brand products.
Clean- looking
packaging with
simple, yet effective
graphics. color on
packaging makes it
look “less cheap” and
more enticing.
Carrefour’s discount
range reinforces their
brand, which is in contrast
to Tesco, who have
chosen multiple new
discount brand names
and packaging styles.
47
Getting Back to Basics


Offering more value in basic lines can win over consumers on a
budget but still wanting a choice.
Discounters do not offer much choice.
48
PL Copy Cats
UK: Asda Loaded Cookies
& Cream Ice Cream
UK: Asda 2 Chapattis: 2 Flatbreads.
Two unleavened Indian style
flatbreads.
UK: Tesco Crunch Duo Mix Banana Choc
Crunch. Deliciously thick and creamy vanilla
flavored yogurt with a separate portion of
crunchy milk chocolate coated cornflakes.
Australia: Coles Chocolate Mint Supremes
49
Pushing Premium Boundaries
50
Differentiating Through Premium

Premium is an area where
private label in recent times has
excelled
-providing the consumer with
excellent quality

Excellent, select, choice etc are
all examples of premium
ranges.
51
Provenance = Premium
52
Many Fine Dining Options

Consumers staying in to save money may take advantage of
private label premium dining options.
53
Restaurant Inspired Products
Netherlands: Plus Appetit
Pappardelle Dried Pasta
UK: Menu from
Waitrose Mains for 2
Shepherd's Pie.
Slow-cooked
minced lamb,
carrots, celery,
mashed potato.
UK: Tesco Finest Oriental Duck & Plum
Noodle Bowl. Description : Egg noodles
tossed with shredded aromatic duck, pak choi,
and spring onion, with a rich, sweet, plum and
five spice sauce.
54
Following Foodservice

Angus beef has been promoted heavily in foodservice (eg
McDonalds angus beef burgers)- private label follows trend.
UK: Asda Extra Special 2 6oz Aberdeen
Angus Beef Burgers
Canada: President's Choice Angus All
Beef Frankfurters
55
Packed For Effect

Beautiful packaging make premium private label
products more appealing.
56
Knock-offs and
Price Comparisons
57
Special K

EUR 2.49
EUR 12.97/KG
Spain: El Corte Ingles Fit Way Copos de Arroz y
Trigo Integral Tostadas con Frutas Rojas: Rice &
Wholemeal Wheat Toasted Flakes with Red Fruit
EUR 2.69 or EUR 8.97/KG
Netherlands: AH Albert Heijn Special Flakes:
Breakfast Cereal with Red Fruits
EUR 2.49 or EUR 8.30/KG
58
Muller Yogurt
Germany: Real Knick-Jogurt with
Chocolate and Vanilla Balls
0.39 EUR or 2.23 EUR/KG
Germany: MullerJoghurt Ecke with Chocolate Balls
0.49 EUR or 3.27 EUR/KG
59
Magnum (Almond)
Germany: Real Mattea mit Mandel
1.99 EUR or 4.15 EUR/L
Launched Internationally Magnum Almond
4.99 EUR or 14.51 EUR/KG
60
Ferrero Nutella
Greece: Ferrero Nutella Chocolate &
Hazelnut Spread
2.28 EUR or 5.70 EUR/KG
Netherlands: Spar Hazelnut Spread
1.65 EUR or 4.12 EUR/KG
Hungary: Auchan Pate a Tartiner aux
Noisettes et au Lait Ecreme: Hazelnut
Spread
1.67 EUR or 4.18 EUR/KG
61
Functional Copy Cats

Private label functional products with the same active ingredients
(plant sterols) but come with a cheaper price tag.
3.18 EUR
4.28 EUR
4.97 EUR
5.19 EUR
Price/Kg
62
Summary

Private Label product launches numbers are growing annually, with
the most product launch activity happening in the UK, USA and
France.

Difficult economic times have called for some private label brand
restructuring and deep discounting in order for retailers to
compete with discounters such as Aldi.

Private label also has been innovative in its own right, with super
premium offerings, innovating in niche areas and offering
comparable and sometimes better products than their branded
competitors.
63
THE END
Send me an email if you would like a copy
Glen.Wells@innova-food.com.au
64