SPECIAL
June 2021
HIGH ADDED VALUE PL
INFORMAZIONE PUBBLICITARIA
LA LINEA VERDE AND CO-PACKAGING: A MAJOR SUCCESS STORY La Linea Verde is an Italian agri-food Group specialising in bagged salads and fresh readymade dishes. The company, today a leader on the domestic market, boasts 50 years of experience in the farming sector, 30 in the fresh ready-to-eat salads market, 15 in the readymade dishes market and 20 in the transport sector. The Group produces both under its own DimmidiSì brand and as a co-packer. It is a reliable partner for the modern distribution sector, and handles over 70 private labels in Italy and Europe, with some of whom it has been working for over 15 years. For the brands for which the Group produces mainly bagged salads, it is an actual partner rather than a mere supplier. Innovation has always been one of the cornerstones of the company. La Linea Verde invests constantly in marketing, technology and R&D, aimed primarily at creating products able to respond to or stay a step ahead of consumer trends, and is evolving constantly to remain on the cutting edge in all areas. In 2020, it concluded an investment of €15 million for
the expansion of the Manerbio factory and the purchase of agricultural land and greenhouses. Innovation is also evident in the principles on which the ambitious structured CSR plan is based, seeking to guarantee an even more virtuous agricultural supply chain, greater energy efficiency and savings on water, support for social projects and increasingly eco-compatible packaging. Focused on this last issue is the work of the Packaging Solutions Team, thanks to which, in 2020, La Linea Verde launched Un Sacco Green, the innovative biodegradable, compostable bag for the DimmidiSì salad range. Thanks to its profound expertise and advanced technology, as a co-packer, La Linea Verde is able to offer all the innovation private labels require, as well as helping them express the specific identity of the brand they represent. The company is very receptive to the input received from
clients, and is able to create a bespoke offer for each one, while guaranteeing all the qualities its products have always been renowned for: genuine flavour, absolute freshness, a controlled and certified supply chain, a modern offer and sustainable packaging. Its dual role as both a co-packer and a brand acknowledged by consumers as an expert in the sector allows La Linea Verde to pursue an important, shared objective: the evolution of the sector as a whole.
PLM SPECIAL - SUMMARY
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A growing contribution of national brands to high value-added PLs
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Towards a more complete service for retailers
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Private Labels: five possible directions
Fully PL projects
PLMagazine special March 2021 Monthly supplement of Distribuzione Moderna magazine, a media outlet registered with the Court of Milan Registration No. 52 of 30 January 2007
Edited by Fabio Massi
Editor-in-chief Armando Brescia
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Managing editor Maria Teresa Manuelli
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PLM SPECIAL - INTRODUCTION
A growing contribution of national brands to high value-added PLs
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rivate Label (PL) products are increasingly appreciated by consumers who now consider them as a valid alternative to national brand references, not only for their lower price or higher quality, averagely increased in the last few years, but also for their growing assortment and high level of service provided, from functional references to sizes, up to green packaging. According to data released by Nielsen, last year, in spite of all the difficulties of the health emergency caused by COVID-19, purchases of PL food products in Italy grew three times faster than those of the national brands (+9.3%). These products reached a turnover of 11.8 billion euros, equal to 20.5% market share value, which is close to 30% when considering discounters. This dynamism is above all due to the high added value characteristics that distinguish many next-generation product lines offered by large-scale distribution: innovation, high quality raw materials, made in Italy production, environmental sustainability, and healthy ingredients. Increasingly valued by consumers, these peculiarities are essential for retailers to increase customer loyalty and stand out from their competitors. PL products in the controlled supply chain, for example, recorded a trend of +20.4% in terms of value in 2020, whereas healthy products increased by +10.7%, premium products by +10.2%, bio references and eco-friendly products by +5.8%. In response to these trends, nowadays the role of national brands within the scope of private label has profoundly changed compared to a few years ago. We can no longer speak of mere suppliers, but of all-around full-fledged partners that, in collaboration with large-scale distribution labels, conceive projects with high added value, from raw materials to packaging, as some of the most prestigious large-scale distribution brands are going to tell you in the following pages. 3
Il Consorzio Funghi di Treviso
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is the biggest mushroom production center in Italy born from the union of 14 producers and agricultural companies located in the provinces of Treviso, Padua and Belluno.
The production of O.P. CONSORZIO FUNGHI DI TREVISO s.c.a. includes cultivated mushrooms as Champignon, Pleurotus, Pioppini and Cornucopiae supplied to the main markets in Italy and to the most important chains of hypermarkets, supermarkets, discount stores, national department stores and large food industries. Its production is certified according to the standards UNI EN ISO 22005: 2008 on traceability - according to the GLOBAL G.A.P. and GRASP and to the CSQA voluntary standard which provides for the defense of phytosanitary adversities through an “integrated production” with the reduction of 70% of the maximum
permitted residue of pesticides. Finally, part of the production has the Organic Product Certification. The OP headquarters applies the IFS food standard. O.P. CONSORZIO FUNGHI DI TREVISO s.c.a. adheres to the Certified Italian Mushroom, a project that aims to inform consumers about the important nutritional values of mushrooms and offer an extra guarantee on the quality of these exceptional products thanks to the rigorous control of the entire supply chain. Spadella il Gusto is the most innovative line developed by Consorzio Funghi di Treviso. It combines the quality of the cultivated mushrooms, completely Made in Italy, with great
practicality, in order to intercept a market trend projected to reassure the consumer, increasingly oriented towards healthy and qualified products that, at the same time, make life easier. A unique product to create value in the fruit and vegetable refrigerated counter. This year, the line has been expanded with new references: three PGI excellences of the Veneto region mixed with cultivated mushrooms, giving life to the Gusto e Territorio range. A perfectly balanced mix of tastes and textures in order to meet the needs of modern consumers to have products that are practical and easy and, at the same time, good, genuine and healthy.
PLM SPECIAL - HIGH ADDED VALUE PL
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Private Labels: five possible directions According to Sabrina Pertot, Marketing and Trade Marketing Manager at Cesare Regnoli and Figlio, the trends of PL products are now moving toward five directions: “ The first is health, through the range of 100% natural products, with a short list of ingredients, characterised by nutritional claims, such as ‘rich in protein’, ‘high content of omega 3’, cereal-based and so ‘rich in fibers’, but also as a natural source of iodium. Then, there’s sustainability, through recyclable packaging or packaging obtained from recycled plastic, or certifications, such as MSC for sustainable fishing. The third direction is that of the service with easy-to-cook products or ready for consumption, also for “on-the-go”; while the fourth is tradition/origin, by supporting regional specialties, while enhancing Made in Italy. Last, but not least, pleasure through tasty, satisfying, hedonistic products, which also nod to ethnic cuisine. We have collaborated with the main large-scale distribution labels of highly hedonistic features for many years and, in the past, we also developed highly practical and convenient references.”
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PLM SPECIAL - HIGH ADDED VALUE PL
Growing attention towards quality and Italianness
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oday, the references of the large-scale distribution labels are more and more appreciated by consumers and represent a valid customer retention tool. “From the point of view of the producers - says Marta Fuser, Key Account Sales Manager of Consorzio Funghi Treviso - PL products can be an important opportunity to create, together with large-scale distribution, proactive and stimulating partnerships, and a growth opportunity for both. What we have always aimed at is the Italianness and quality of our products: our supply for large-scale distribution suits the high quality and safety standards thanks to the numerous certifications we have obtained, among which Global Gap, Grasp, Ifs Food, Fungo Italiano Certificato, as well as to integrated and biological production. Other fundamental characteristics of our references are freshness, something that we are able to guarantee thanks to our logistic system that allows delivery within 24 hours of harvesting, and last, but not least, innovation.”
Many innovations from the world of mushrooms
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or quite some time now, Consorzio Funghi of Treviso has combined classic references with innovative products and mixtures. “We offer our consumers new recipes and original uses of mushrooms - explains Marta Fuser - and, at the same time, the opportunity for clients in large-scale distribution to widen the range of fresh products with dynamic and service proposals. In the last year we have launched the Gusto e Territorio line, where we combine cultivated mushrooms and Pgi mushrooms of the Italian territory. Today, instead, we are working on a new range, Gli Speciali, with the aim of offering new original mixes among all the different types of mushrooms. These new references may help introduce new consumers to the world of mushrooms which is still little known, but which offers a healthy product, low in calories, rich in vitamins and also beneficial for the immune system”.
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Keywords for the future: innovation and sustainability Today PL products are able to meet the needs of consumers that are rapidly changing their purchasing habits. “ Thanks to the increasing feedback of the main market players - affirms Pierantonio Invernizzi, Sales and Marketing Director at Inalpi we produce slices, mini cheeses, butter, mozzarella cheese, graped cheese, yogurt and natural cheese for PL. At the moment, our challenge is to suit our consumer’s needs in a period that could only partially be defined as ‘post-pandemic’. There are two essential concepts at the heart of our future path: innovation and sustainability. Innovation is the fundamental element in customer’s requests. Customers, in fact, more and more for products that are an expression ofItalianness, supply chain and traceability, short recipes, clear labels and sustainable packaging; characteristics that are an integral part of our company’s history. Sustainability is a long-term goal, as the UN Agenda 2030, with its 17 sustainable development goals, recalls. These are now the drivers in all of our company’s choices and projects, and this is why we are a strategic partner for the PL.” 7
Distribuzione Moderna. Retail in real time. The first online newspaper for suppliers and retailers.
www.distribuzionemoderna.info
PLM SPECIAL - HIGH ADDED VALUE PL
Fresh cut: great attention to sustainable packaging In the last few years, according to Andrea Battagliola, Managing Director and Sales General Manager at La Linea Verde, large-scale distribution has enhanced both the label and PL fruit and vegetable aisle: “According to trends, in addition to the buying decisions influenced by the awareness of the close link between food and health, sustainability today is definitely ranking first. The challenge for fresh cut, which cannot help including in its proposal packaging and packs, is looking for solutions with a low environmental impact. Materials must be 100% recyclable, but the bar is being raised and consumers expect, also from PLs, a gradually lower impact. Our Packaging Solution Team works daily precisely to develop increasingly sustainable solutions for the labels of which we are partners.”
A “tailored made” supply
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a Linea Verde’s relationship with the over 70 brands it works for is of partners, not of mere suppliers. “PLs are complex projects’’ explains Andrea Battagliola - they must have all the innovation content we can provide as co-packers and that is in our expertise and in the technology we own. But they also have to express the specific identity of the label that they represent. So we are very responsive to all the inputs that come from our customers and we design a ‘tailored’ proposal that matches the profile of each of them. However, our PL fresh cut and fresh ready-to-eat products are the pillars of our supply and modus operandi: genuinity and absolute freshness, controlled and certified supply chain, modern supply, sustainable packaging.”
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PLM SPECIAL - HIGH ADDED VALUE PL
Large-scale distribution aims to eco cleansing
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abels which require PL products in line with the growing demand for ‘green’ of their consumers are increasing. “Our commitment to environmental protection and user safety dates back to 1985 - states Sergio Antoniuzzi, President of Icefor - when we launched our Formula Ecologica cleansing line. This commitment continues today through research into increasingly sustainable and ecological formulations. In our products we use solvents derived from vegetable glycerin with high efficacy and low volatility, not included into the Volatile Organic Compounds (Voc) category, which protects the respiratory health of consumers. In our opinion, not only does sustainability concern the product, but also all the productive cycle: consumers that choose us for the development of their own PL lines know that they can count on a reliable, safe and pluri-certified supplier.”
Towards a more complete service for retailers The relationship between the label industry and largescale distribution labels of PL products has evolved a lot in these last few years. “Our business model is mainly based on PLs - says Giuseppe Tammaro, Italy Sales Director of La Doria - for this reason we are no longer mere suppliers, but actual partners of retailers. We have worked on expanding the range with products with higher added value and service, and this has enabled us to respond to changes in demand and build loyalty with both
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PLM SPECIAL - HIGH ADDED VALUE PL
Sustainable and 100% certified cleaning products
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lobally considered Icefor, in its raw materials, packaging and production process, is sustainable and 100% certified. “Our supply is based on cleaning products whose formulas are made of raw materials with a low environmental impact deriving from renewable vegetable sources - explains Sergio Antoniuzzi - with the Roundtable on Sustainable Palm Oil (Rspo) certification and packaged with 100% post consumer recycled plastic, Plastica Seconda Vita certified (an environmental product certification system). Furthermore, our eco-cleaning products have not only been tested on animals and got the Ecolabel label, but they’re also the only ones that have received the approval by the scientific committee of Legambiente to put on their labels the ‘Recommended by Legambiente’ logo.”
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PLM SPECIAL - HIGH ADDED VALUE PL
the trade and the end consumer. We offer our clients specialized expertise in PL product production and high flexibility in the customization of recipes, packaging and services. It is through this sinergy with the labels of Italian and international large-scale distribution that we build long-term relationships and achieve high levels of economic efficiency. At the same time, we offer an increasingly complete service, oriented not only to production, but also to product innovation through a profound knowledge of the final consumer, aimed at intercepting new market trends.”
Fully PL projects Product innovation, quality and sustainability, together with Italianness, are essential requirements for the development of new consumer proposals, also for PL. “A fair value for money is the additional characteristic for the success of a product - explains Thomas Beggio, Business Manager of Moroni Amato - and the distribution plays a fundamental role in looking for, evaluating, and making available on the shelves reference with such characteristics. An example is our laundry and home fragrance, Coccolatevi, which our consumers awarded Product of the Year in its category in 2020. The supply of our Group for the PL lines for home and personal care and makeup products fully covers the project development. It studies our client’s shelf, the design and the graphic proposal, as well as the creation of display solutions, suitable to different sale points formats. Customization and versatility are two great strengths of our offer.”
Una fruttuosa cooperazione ad Una fruttuosa cooperazione ad
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PLM SPECIAL - HIGH ADDED VALUE PL
A prosperous high added value collaboration According to Andrea Alfieri, Marketing Manager of TreValli Cooperlat, the collaboration between production and distribution has always been close and it is increasingly evolving towards a high added value partnership: “Distribution uses manufacturing resources and tries to quickly intercede new consumer’s trends, and sometimes even drives them, in a way. At the same time, the industry responds to the constant call from retailers to always keep up with the times. Our company has been close to its customers for more than 60 years, strong in its roots and cooperative values, pursuing with care and professionalism a culture that combines product innovation and respect for the traditions. Our supply for the PL is wide, with a product portfolio that goes from liquid milk (fresh, Esl, UhtI to cream (fresh cream, Esl, Uht, whipped cream, spray, crème fraiche), from besciamella to dessert, from dairy products (fresh, seasoned and semi seasoned) to vegetable cream (whipped and spray). In addition to classic lines, we also provide an important product range of lactose free, gluten free, vegetable and bio.” t