EU Allows Dairy Descriptive Terms for Plant-Based Items

The European Parliament has dropped Amendment 171, a bill which would have censored all use of dairy-related language for plant-based food. Regulations on dairy-free alternatives in the EU are already restrictive. Legislation passed in 2013, means words like “cheese,” or “yoghurt,” can only be used to describe milk-based products which must originate from animals.

This amendment would have gone further and would have prohibited dairy-related packaging formats, such as a carton for plant-based milk, or a block for plant-based butter. In addition, allergen information like “does not contain milk” and descriptive terms like “creamy” or “buttery” would not be allowed.

Plant-based food manufacturers, environmentalists and consumers had heavily criticised the proposed bill. They argue that consumers aren’t confused by descriptions of dairy alternative products and that a more sustainable production and consumption is desirable.

Staying Ahead of the Game

Delfim dos Santos, Daymon’s vice president of Europe & Asia Pacific, encourages retailers and manufacturers to show even greater innovation in private label and further strengthen their position. Watch video here.

Opportunities in Central and Eastern Europe

News anchor Judith Kolenburg takes a look at the retail landscape and opportunities for private label manufacturers in Central and Eastern Europe. Watch video here.

PLMA’s “World of Private Label“ International Trade Show, 14-15 December 2021 in Amsterdam

On 14 and 15 December 2021, PLMA’s “World of Private Label“ International Trade Show will be held in person at the RAI Exhibition Centre in Amsterdam. PLMA’s timing will allow for a safe event under the theme ‘Back to Business with PLMA’. All aisles are extra-wide which, together with a variety of other health and safety measures, will allow all attendees to apply social distancing.

Products on display will include fresh, frozen and refrigerated foods, dry grocery, and beverages as well as non-food categories, including cosmetics, health and beauty, household and kitchen, auto aftercare, garden, and housewares & DIY. The show floor is divided into separate food and non-food halls to help visitors make the most of their time. Exhibitor registration for the 2021 “World of Private Label“ is open. For more information, click here. To request an application to exhibit, click here.
European Discounters Account for 43% of Retail Growth

The discount channel is the second largest and fastest-growing grocery retail channel in all of Europe, according to new research from IGD. The discount channel will be the major contributor to growth in the sector up to 2022, with leading discounters – Lidl and Aldi – adding more sales than most major European retailers. The discount grocery channel accounts for 43% of growth across Europe and will add €34 billion in sales from 2020 to 2022.

While in some mature markets, the channel’s growth is slowing, in other regions, such as in Central and Eastern Europe, the channel is expected to show double-digit growth.

 

Nutri-Score Enhances Sales

Nielsen France research shows that the influence of Nutri-Score on sales is significant. Sales of products without Nutri-Score increased by 0.8%, while over the same period, products bearing the label increased by 18.5%.

Sustainability Has its Price

A survey by McKinsey shows that almost half of Germans have been spending more money on fair or more environmentally friendly products since the pandemic. But price is also important: two thirds would buy more if sustainable products were cheaper. Every second respondent states that they consciously choose new products "in order to reduce the ecological footprint and make a contribution to society.” According to the survey, 27 percent consciously save in other areas in order to be able to afford sustainable products.

The age of the respondents plays a major role. The younger the consumers are, the more they value sustainability. In Generation Z (15 to 23-year-olds), 60 percent are willing to pay more. 18 percent of them stated that they would accept a price premium of more than 20 percent. For women it is 52 percent, for men 49 percent.
Big Retailer in Russia Getting Bigger

One of Russia’s biggest chains, Magnit, is taking over rival Dixy. The deal would add over 2,500 stores to its network, almost doubling its size in the process. Founded in 1994, Magnit utilizes a multiformat model which includes convenience stores, drug stores, supermarkets and pharmacies. In addition, the company operates a private label food production business.

Dixy is in the top five largest chains in Russia with a revenue of about 3.4 billion euros. Magnit’s and Dixy’s revenues combined would add up to 22.4 billion euros, which brings it close to market leader X5 and gives it a good chance to catch up the leader’s place in the future.

Two years ago, Magnit tried to buy another big Russian retailer, Lenta, but it lost negotiations to steel tycoon Alexei Mordashov who ventured into the retail sector for the first time. Supermarket consolidation in Russia comes as no surprise since the economy is marked by yearslong decline

in income putting pressure on retailers to merge and gain power to better compete with an increasing number of rivals.

Nestle’s comments on its “unhealthy” products

Nestle says 60% of its traditional food and beverage products do not meet its recognized standard for healthy eating. Nestle uses the Australian health star rating system, which scores products on a five-star scale and is used by international researchers including the Access to Nutrition Foundation. A product must score at least 3.5 stars to be considered healthy.

The company says that some of its categories will never be ‘healthy’ no matter how much it renovates. Only 37 per cent of Nestlé’s food and beverages by revenues, excluding products such as pet food and specialised medical nutrition, achieve a rating above 3.5 under Australia’s health star rating system.
Coop Nordics to bring Carrefour private label to Scandinavia

Carrefour has signed a partnership with Scandinavian purchasing group Coop Nordics group which will focus on private label. Coop Nordics is one of the leading retailers in Scandinavia with a business volume of over 27 billion euros and a combined market share of 33%. It includes Coop Denmark, Coop Norway, Coop Sweden and Finnish retailer SOK.

The deal will allow the cooperative to purchase both food and non-food products from Carrefour including French, Spanish and Italian private label items. Coop Nordics will sell Carrefour‘s own brand products in its more than 4500 stores in Finland, Denmark, Norway and Sweden.