What’s
keeps eating away at legacy CPG national brands not new niche competitors but
retail brands that vertically integrate quality private label foods. Consumers rapid adoption of retail private
label brands from Whole Foods, Trader Joes, Aldi in the US now to Aldi and Lidl
in Great Britain are challenging the legacy grocery model itself.
Nielsen
in a new report found that “discount retailers Aldi and Lidl now account for
more than 10% of sales at the UK’s leading supermarkets. Aldi and Lidl’s
combined market share hit 10.7% during the twelve weeks ending 31 January 2015.
Nielsen
UK head of retailer and business insight Mike Watkins stated “Initially built
on the premise of saving money, the new wave of discounters are now a regular
part of grocery shopping and have changed shopping habits forever….
“For
instance, switching to cheaper grocery brands is again the number one household
tactic for saving money. Furthermore, nearly half of those cutting costs will
continue to buy cheaper grocery brands even when economic conditions do
improve….
“However,
what is different this time is that discounters are no longer solely associated
with price. They’ve been very astute at promoting the quality of their
offerings to appeal to a wider range of consumers.” One thing is clear smaller
footprint stores, quality private label fresh and prepared food will continue
to drive change.
For
international corporate presentations, educational forums, or keynotes contact:
Steve@FoodserviceSolutions.us Grocerant Guru at Tacoma, WA based
Foodservice Solutions. His extensive
experience as a multi-unit restaurant operator, consultant, brand / product
positioning expert and public speaking will leave success clues for all. www.FoodserviceSolutions.us
No comments:
Post a Comment