Private Label Performance Remains Strong In Ireland
Published on Oct 20 2014 11:48 AM
Private Label currently accounts for 38% of all retail sales in Ireland, up from 35% two years ago, according to data from Kantar Worldpanel (Retail review, September 2014).
While branded products hold 51% of the market, those without any brand name account for 11% of grocery lines.
Maria Stokes, Food and Beverage Division, Bord Bia, says that what is most noticeable about this growth is that it is being driven by the discounters. "Growth in private label in the multiple channel is relatively flat having risen just 0.4% in the two years to September." Currently, Aldi and Lidl hold a combined market share of 15.9% of the Irish grocery market.
The data also shows that Tesco is the largest holder of private label share, and has been demonstrating a significant decline down from 32% to 25% in the last 24 months to September this year. Stokes notes that since March 2013, inflation of private label products has been below the rate of inflation of branded lines.
Primary ingredients such as meat, eggs, and butter "over-trade" in private label according to Stokes, as do chilled ready meals and chilled bakery products. Furthermore, categories with strong established brands in the multiples, such as toiletries, tend to have less presence in private label.
Stokes added that branded products are losing share to all tiers of private label, and especially to standard private label. "Despite some reticence in the early stages of the entry of the discounters into Ireland, they have been the forerunner in the promotion and growth of private label in the Irish market."
© 2014 - Checkout Magazine by Genna Patterson