Friday, 21 March 2014 - 11:11
Supermarket A-brands suffer
Dutch supermarkets' top-100 A-brand products have had a turnover increase of only 0.3 percent, which is the worst result since 1998. Almost a quarter of supermarket turnover was supplied by the recognized brands, which all-together made €7.8 billion, the NOS reports The low results weren't caused by competition from supermarket in-store brands, however, which actually supplied market share for the first time in ten years. EFMI Business School calculated a drop of 0.3 percent in market share over the year, coming out at 27.2 percent. Dutch supermarkets experienced a turnover growth of 1.5 percent, which means they did better on the whole than well-known brands such as Campina, Douwe Egberts, Coca Cola and Heineken. Research group IRI blames the low growth of A-brands on consumer budgeting. "Despite the many special offers of A-brand products, like two for the price of one, people have been buying less", says Sjanny van Beekvald of IRI Nederland. Van Beekveld finds it surprising that brands falling outside the top-100, such as Witte Reus and Lassie, grew with 2 percent and sold better than their larger competitors. She things that the most important turnover growth lies in sectors with little to no A-brands, such as meats, bread, and fruit and vegetables, which usually don't have brand names at all. Export to China seems to have been the crux of several brands' success this year, such as Nutrilon. The top-three brands haven't changed. These are Campina, Marlboro and Douwe Egberts. Milk, cigarettes and coffee. Three of the biggest losers are Pampers, Caballero and Mona. Diapers, tobacco and dessert snacks.