Markets Private labels are gaining market footholds in fresh dairy

Private labels are gaining market footholds in Fresh dairy

We’ve been watching private label evolve for some time now and even buck the inextricable past of basic and premium pricing segments, with an increasing presence in premium segments, certified products, regional specialities and innovation in terms of service and packaging.

The lockdown and other measures to stem the health emergency gave a big boost to domestic consumption of cheese, especially dairy products of industrial brands and private labels. From January to June 2020, in fact, according to data processed by Iri and Gfk released by Assolatte, cheese sales in modern distribution increased by 11.6% compared to the same period last year and, among the most consumed products, in first place is mozzarella for cooking (+67.7%), followed by mascarpone (+50.6%), sliced

Coop Italia ◆ Brand-name fresh cheese sales increased by over 50% during the national lockdown. ◆ Between January and September 2020, sales of fresh cheese at Coop Italia were up 14%, while brand products climbed 26%. ◆ Between January and September 2020, Coop private label dairy products outperformed brand-name products in terms of both value and volume.

processed cheese (+20.7%), cow's milk mozzarella (+18.2%) and string cheese (+17.5%), all well above the industry average. The dairy and cheese market, like many other consumer packaged goods markets, has been evolving for some time now and, in a departure from the past, is no longer restricted to the basic and premium price segments, but is increasingly present in the premium segments, in certified products, in regional specialities and in more innovative products in terms of service and packaging. Today, private labels have achieved a continuously growing share of the cheese and dairy products market in large-scale organised distribution of around 20%, both in terms of value and volume, and this share is very high for various dairy products such as butter, mozzarella, fresh cream, ricotta and low-fat yoghurt.

PL CHEESE CONSUMPTION FUELLED BY THE LOCKDOWN "The category has been growing strongly in general," says Filippo Capellupo, category manager for the PL fresh sector at Selex, "and private labels are outperforming the market with a consequent increase in their share. The trend towards buying our private label products accelerated in the first months of 2020 and consolidated in the following months. The performance of mozzarella, yoghurt, ricotta and Crescenza cream cheese is particularly impressive, which we interpret as confirmation of consumer awareness of the excellent quality/price ratio of our products. Even at Coop, where the sales performance of cheese and dairy products is managed in two different areas, the retailer's private label products are outperforming the average of their respective categories. "Fresh cheese sales figures have been very positive from January to September 2020," says Danilo Pini, Head of the Cheese Department at Coop Italy, "recording

Carrefour Italy expands its wellness offering

The Carrefour Italia brand in dairy products and fresh cheese is performing very well in recent months and is expanding with new products, especially in the wellness segments. "All our private label products, thanks to the service content and the excellent quality/price ratio, are posting significant growth rates," explains Marco Selmo. "We are also working on the category to expand the assortment range, ensuring maximum coverage of units of need, particularly on line extensions such as 'lactose-free' and 'light'. Another extremely important issue for us and one that we are developing is the Italian origin of raw materials and, therefore, the Italian character of the offer within our branded product range."

+14% in both value and volume compared with the same period in 2019, with branded products growing by 26%, contributing significantly to the overall result. Obviously, these figures were significantly affected by the national lockdown, with increases of over 30% and 50% on private label products."

PRIVATE LABEL OUTGROWS BRAND PRODUCTS IN DAIRY The same applies to industrial dairy products, again in Coop, though the dynamics differ across the individual categories. "This sector is performing very well overall," explains Doriana De Pascalis, head of the dairy department at Coop Italy, "with volume trends ranging from +12.6% for fats, +7.2% for vegetable beverages, +3.2% for milk, and +2.5% for yoghurt. The performance of this last category is rather positive in view of the almost total absence of innovation in 2020 and its importance as a sales driver. The numbers are even more remarkable considering the performance of our private label, which is growing more than brand names in terms of value and volume. The sole negative aspect was sales of fresh milk, which fell sharply as a result of the COVID restrictions, though this was largely offset by long-life milk, which grew by around 10% in both volume and value."

TOP 5 PL PRODUCTS IN TERMS OF GROWTH

+67.7% cooking mozzarella +50.6% mascarpone +20.7% sliced processed cheese +18.2% cow's milk mozzarella +17.5% stringy cheeses