The growth of private label and digital marketing brings new challenges as well as new strategic opportunities.  

Pedro Mendonça da Silva, Adjunct Professor at Porto’s Accounting and Business School in Portugal (ISCAP), shares the results of his recent study on whether private label manufacturers should invest in digital strategies.

Mendonça da Silva highlights the vital role of digital technologies across the value chain, as well as the importance of forming alliances in private label supply with strategic partners for mutual benefit. 
 

New and improved plant-based products are some of the trends that stand out among the entries for the 2024 International PLMA Salute to Excellence Awards. 

Judith Kolenburg reports on these and other products evaluated by judges. In the wine category, indigenous grape varieties like Albariño and Verdelho are prominent among the submissions. This demonstrates that retailers are catering to younger, more adventurous generations. 

This year’s winners will be announced and displayed at PLMA’s World of Private Label International Trade Show, 28 and 29 May.

Also, Pascal Kuipers discusses rising cocoa prices. He outlines what’s new in sustainable options, including the launch of cocoa-free chocolate at Rewe, WinWin and Nukoko.

More than 2,950 exhibitors from more than 73 countries will fill over 43,500 m2 of exhibit space at PLMA’s 2024 World of Private Label International Trade Show, May 28 and 29 at the RAI in Amsterdam.

The show floor will span 14 halls, including nine for food and five for non-food. It will feature 67 national and regional pavilions.

“Our high-impact global event provides a dynamic two-day platform for more than 28,000 private label professionals from 120 countries to connect, source and grow,” said PLMA President Peggy Davies. “The innovation unveiled for food and non-food products and packaging on the show floor and in Idea Supermarket will strengthen the already booming private label industry.”

Price and offers or promotions are crucial for many 18- to 30-year-olds when shopping for groceries. This emerges from a study in German speaking Europe by the consulting firm Institute of Brand Logic, which identified four additional relevant criteria.

In addition to price, important factors are the quality and taste of the food (80 percent), a range that enables a conscious and healthy diet (67 percent), and the regional orientation of the retailer (60 percent). This is followed by socially and fairly produced food (59 percent) and ecologically and sustainably produced food (52 percent). Digital solutions (27 percent) and trendy foods (25 percent) are in last place here.

The fourth criterion that the study authors identified is the curiosity of the younger generation. 69 percent “very much” or “like” trying out new products, trends and dishes. Accordingly, 60 percent of food retailers would like more relevant product information regarding usage options and food ideas, but also health aspects and supply chains.

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.

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, 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.
 

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.”

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.

Sports nutritional supplements are increasingly finding their way onto the shelves of supermarkets. Where in the past, professional and avid amateur athletes or body builders would be surfing online to buy their sports nutrition and food supplements, the category is experiencing an important push from “mainstream” consumers.

Today’s consumer is more and more looking for healthy and tailored nutritional options, and he has discovered the world of sports nutrition.  According to Euromonitor, globally, sports nutrition is the fastest growing consumer health category since the COVID-19 pandemic, with double-digit growth for three consecutive years to 2023.

In Europe, e-commerce sales are still dominant in the category, but supermarket sales are rapidly catching up. With growing consumer demand, grocery retailers are expanding their product offerings with protein bars, shakes, pre-workout supplements, and performance ‘boosters’ like creatine.