PL Magazine October 2021 by Edizioni DM Srl

Private Label Magazine Private Labels are conquering label leadership (with the help of the manufacturers) Gruppo VéGé, distinctiveness comes through wellness and premium The Supermarketification of Discounters. The Lidl case history 4/2021

PLM - TABLE OF CONTENTS

Editorial PL towards a new identity

IPLC Obervatory Is it possible to build an alley between industrial brands and pl products?

Cover Private Labels are conquering label leadership (with the help of the manufacturers)

18 Private label scenario Private label innovation in the European market

24 Interview with distribution Gruppo VéGé, distinctiveness comes through wellness and premium

28 Markets PL pet food meets new consumer needs

36 QBerg Obervatory Pet care. Private Label around the world. From flyer promotion to e-commerce websites

40 On-the-field Experiences The Supermarketification of Discounters. The LIDL case history 44 Interview with the company La Doria, a business plan based on PL 48 Markets PL ready sauces between innovation and tradition 48 Exibitions MarcabyBolognaFiere grows and is back in the field

Editorial director Maria Teresa Manuelli

Scientific Committee Stefano Ghetti, Expertise on Field Managing Partner/ IPLC Italy Partner Gianmaria Marzoli, IRI Italy Retail Solutions Vice President Alberto Miraglia, Retail Institute Italy General Manager Paolo Palomba, Expertise on Field Managing Partner/IPLC Italy Partner Emanuele Plata, PLEF Co-founder, Past President & Board Advisor

Translation Jcs - Language Services info@jcslanguage.it

Contributing Authors Federica Bartoli, Maria Teresa Giannini, Fabio Massi, Luca Salomone, Fabrizio Pavone

PLMagazine Quarterly supplement of Distribuzione Moderna magazine, a media outlet registered with the Court of Milan Registration No. 52 of 30 January 2007 Editor-in-chief Armando Brescia

Creative Director Silvia Ballarin Editor Edizioni DM Srl - Via A. Costa 2 20131 Milano P. Iva 08954140961 Contact Tel. 02/20480344 redazionedm@edizionidm.it Advertising Ufficio commerciale: commerciale@edizionidm.it Tel: 02/20480344

There is no guarantee that we will publish the original versions or any part of submissions (texts, articles, news, images, data, charts, research, etc.) sent by authors outside the Editorial Board. Submissions may, however, be published in a revised form for editorial reasons. It should also be noted that sending a submission constitutes an automatic authorisation by Edizioni DM Srl to publish it free of charge in all its publications.

EDITORIAL - PLM

PL towards a new identity PLs are undoubtedly becoming more and more important and have a clear identity in the large-scale distribution market, involving strategies and investments of the most prestigious industrial brands. In Italy, innovative lines with high added-value such as - only to mention some of them - Terre d’Italia or Il Viaggiator Goloso or Crescendo or Naturama were able to be the choices and conquer the hearth of consumers, building loyalty with their old customers and attracting new ones. PLs are not an accessory anymore in the retail supply; they are a distinguishing feature for the label and this is thanks to a precise strategy: providing the customer with a high quality product at a fair price. This goal can be achieved through constant research of current and Premium products, together with strict protocols of chemical-physical and organoleptic analysis, R&D investments, market research etc. The result is a value that sometimes does not depend on price alone. In fact, in some cases, it is even higher than the traditional industrial brands. So, why do consumers prefer PL products when they could buy a branded product at a lower price? The reason lies in the strong relationship of trust and shared values built overtime, which now bears its fruits. A significant sign of this change in trends is the great PL development such as of the wine industry, which was considered an untouchable market due to the labels of the most prestigious vineyards. According to the research by Iri in the recent show "Vinitaly Special Edition", the PL bottles of 0.75 lt of wine and sparkingling wine grew by 3% in volume and 6% in value in 2020, compared to the stability of the traditional brand of the main wine companies. However, this growth with great premium references and at high added-value could be in difficulty because of prices. The increase in costs (raw materials, energy, logistics) that affects PL producers and labels distribution, and on the other hand, the purchase power of consumers that doesn’t grow could stop the race and affect trust building. Will the different distribution chains be able to keep an ideal balance between all these contrasting factors not to lose these consolidated and loyal consumers?

Maria Teresa Manuelli Editorial director

PLM - IPLC OBSERVATORY

IS IT POSSIBLE TO BUILD

A N ALLEY B ETWEEN

industrial BRANDS AND

Pl products?

Innovation, competition and cooperation, today, are essential keywords for profitable relationships between manufacturers, distributors and other companies of the supply chain. The companies of the supply chain in which my company operates are counterparts to steal the highest value from, or are potential partners, instead, to create new values with?

hese are hard times for managers that don’t have the right skills to develop valuable relationships: listening, empathy and openness to dialogue are determinant soft skills that can generate unexpected and lasting results for the companies (and the people) involved. Who has more bargaining power? Who needs whom the most in the supply chain? In addition, retailers built tangible or intangible supply to excel in "inter store competition": the category supply, of PL, of service - these are the main factors to be unique and valuable - is designed based on the target customer profile.

IPLC OBSERVATORY - PLM

PLM - IPLC OBSERVATORY

anufacturers’ brands, both tangible and intangible, try to be the favourite ones in the shelf competition, to win the "inter store competition". In fact , sales points - where the customers take more than 70% of their purchase decisions - are the ‘media’ to which the most part of the investments of communication and promotion from manufacturers are dedicated (in Italy, according to Nielsen data before the pandemic, accounted for approximately 7 billions per year). These two brief, but true, statements have different meanings: we faced situation in which the complementarity among formats of sales points generated long lasting alleys, for example, discounters situated next to supermarkets, which sometimes shared the car park or specialized selling points next to superstores or hypermarkets (category killers), frequently had ‘symbiotic’ relationships with mutual benefits. However the category, the strategic business unit of retailers and often also of producers, is the most fertile ground to convey interests and cooperate, by working together and complementary with the marketing leverages and retail mix. Here, there’s a non-isolated example of collaboration between brand manufacturers and retailers in an important sector, briefly described in the following ‘virtuous circle’:

a. The manufacturer develops and innovates products that markets with its own brand, investing in communication and obtaining the access to the shelf in a partner retail with its PL products. b. When innovation decreases and sales generate return on investments (of the manufacturer for innovation and the retailer for the place occupied), the same product, possibly designed by the same brand manufacturer, enters the retailer ’s PL product supply, developing sales (objective of the retail that generates continuity in production volumes for the producer). c. Meanwhile, the manufacturer R&D and Marketing worked on innovations/news, to redirect the attention of shoppers and consumers towards their brand, attracting in this way sales to the category. Elaborazione IPLC Italia da fonte aziendale Walmart 6

IPLC OBSERVATORY - PLM

PI (Key Performance Indicators) - such as, for example, for retailers: rotation, reddivity of the place, category and PL margins, and for manufacturers: brand product sales and margins and PL product margins realized by the same manufacturer - can show the win-win eff ect of this process, generating the repetition of more cycles with a+b+c phases. However, not all the industries have company profiles (and managers) able to organize collaboration cycles like this and especially in those categories without, or with few and weak industrial brands, retailers play an essential role and, for this reason, sometimes have diff iculties. Without leading manufacturers or ‘category captains’, or in categories in which PL is leader, who plays the role of product innovator? The retailer? The manufacturing contractor? And if it’s this last, will the retailer be available to invest in innovation, assuring a contract until, at least, the return of the investment of the manufacturer? In this case, especially for categories with high involvement of the consumer and with weak industrial brands, the performances of all the players of the category risk to drop, unless ever increasing vertical competition creates and involves interesting profiles for the consumer that take up the challenge set by the retailers to innovate relevant aspects for the consumer, for a PL that definitely eliminates the ‘ ME TOO’ approach and adopts the ‘ ME FIRST’ approach instead.l

Paolo Palomba, Expertise on Field Managing Partner/IPLCItaly Partner

PLM - COVER STORY

Private Labels

are conquering label leadership (with the help of the manufacturers)

The relationship between distributors and manufacturer companies changes: they were counterparts to steal the highest value from and are now potential partners, instead, to create new values with and win the distributive market competition. 8

COVER STORY - PLM

PLM - COVER STORY

COVER STORY - PLM

or food as for beauty, and for the home care and pharma sectors, this is the age of PLs. The 2020 international annuary of Plma (Private Labels Manufacturers Association) leaves no doubt: the document, based on Nielsen data, shows how in the last year the PLs have retained over 30% of the market shares in 16 out of 18 the European countries analyzed and an average of 37.5% in Europe. Fresh and frozen food, dairy products and health and personal care products are the fastest growing categories of goods in the 18 countries analyzed. With 22.6% of market shares in 2020, Italy is far from Germany (43.1%) and France (38.5%) legging behind the two countries in the Mediterranean area, Spain and Portugal, where the PL market share is close to 50% (precisely 49.7% and 45.1%). However, what’s important is the promising trend of stable growth. In fact, the Adm position paper submitted during the Ambrosetti Forum in 2021 shows that only in 2019-2020, PL products covered +0.5% of the market shares, after the +0.4% recorded between 2011 and 2019. A total turnover of 11.8 billion euros in 2020, that is expected to further grow by 2 billions in 2022. The new ‘distributors-manufacturers alley’ is a win-win relationship for the cross-sectional leadership competition in different retail industries. On one hand distributors need that their brand conquers the consumer with a credible, sustainable and healthy image; on the other hand, Smes can reach the general public without significant investments in marketing and without being present in the point of sale, which is where clients take more than 70% of their purchasing decisions.

In 2020, the PL turnover reached 11.8 billion Euros and a market share of 20%. PL Turnover and market share in Italy (value in bln of Euro and %), 2003 - 2025E

PL turnover

PL market share

N.B. The 'leap' of PL turnover from 2010 to 2011 is linked to the change of the reference area. Until 2010, the PL turnover was calculated considering only Supermarkets (stores with a sales area from 400 to 2,500 square mt.) and Hypermarkets (stores with a sales area of more than 2,500 square mt.). Since 2011, instead, also self-service (stores with a sales area from 100 to 400 square mt.) has been included in the data collection. Source: The European House - Ambrosetti elaboration on ADM and IRI data, 2021.

COVER STORY - PLM

I NNOVATI NG TO WI N

“As for our PL products, we always aimed at quality to distinguish ourselves from the competitors - affirms Michela Cocchi, PL Brand Manager of Despar Italia, with 17 PLs within its supply. Our supply includes organic (Scelta Verde Bio,Logico), gluten-free (Despar Free from), vegan (Despar Veggie) and functional (Despar Vital) product lines such as fruit flavor Yogurt Drink, that made us win one of the prizes ‘Health to Excellence 2021’ (together with Md and Migros, that won the same prize for other good categories, ed.) thanks to its characteristics: it is entirely made of Italian milk, enriched with ferments and fibers, and it has a packaging with 70% of plastic less compared to a traditional one. Our focus is to enhance local food excellencies, on the shelf several Dop and Igp products within Premium Despar lines. Plus, we’re extremely attentive to packaging sustainability, using recyclable and recycled materials, when possible.”

u In Esselunga, according to the 2020 Sustainability Report, the PL product supply is

cross-sectional, from food to home care and personal care products. It has more than 5,700 references (they were 5,400 in 2019), and they were all focused on economic convenience. The PL lines of the company are 10 now and are produced both in their factories and by selected suppliers, under specific production protocols. The company has a dual nature of commercial and industrial reality, especially in the food industry. In fact, it directly produces desserts, fresh pasta and bread (in this case, the brand is the famous Elisenda), ethnic dishes (for example sushi) and other food recipes.

PLM - COVER STORY

WHEN THE DISCOUNTER FOCUSES ON PREMIUM

In the last few years, discounters have entered the PL Premium market and contributed to its growth, in particular by experimenting with new lines during festive seasons or in specific regions. “Lidl brands dominate all the segments of the ideal basket of our clients. Our supply has a constant assortment of more than 2,500 selected references, ⅘ of which come from Italian suppliers, and is characterized by 85% of PL products to guarantee the best value for money - claims Alessia Bonifazi, Communication Manager and Csr Lidl Italia-. In line with the desire to enhance the territory, we chose to cooperate with the Italian Agriculture Supply Chain (Fai), by developing a range of products that honors the regional tastes of our country. The line, in fact, which boasts the Fdai mark (Signed by Italian Farmers) shows our support to an ethical management of the whole production supply chain, based on the agricultural values and on the protection of the local economy.” Carrefour Italia has also launched a collaboration with Coldiretti and Fai in 2019 to guarantee several products from the well-known Terre d'Italia line of regional specialties with the Fdai label. But the strategy of the company concerning PL never stopped: “In 2018 we introduced the blockchain technology on the products of the line Filiera Qualità Carrefour, starting from the chicken supply chain, and then continuing on other food, while our next projects are focused on eggs from free-range and antibiotic-free hens and on different citruses - explains Simona Vimercati, Brand and Exclusive brand Manager of Carrefour Italia -. We are developing an easier contract outline of supply for small local producers of fresh products, that allows them to become suppliers, with a 7 days payment method. Last, but not least, our effort to reduce packaging. In 2021 Carrefour launched the Zero Plastic challenge, saving 56 tons of plastic (52 made of plastic only) until June. The objective, now, is to save 100 tons by the end of the year: to do it we chose to eliminate the packaging, when possible, and to prefer those which are 100% recyclable and with FSC paper.”

COVER STORY - PLM

biacouscous.it

Better with Bia. The CousCous Specialist

Best quality CousCous for Private Label

COVER STORY - PLM

SER VI CES: OUR NE W FRONTI ER

Premiumization, as Koen A.M. de Jong of Iplc explains in the essay "Private Label innovation in the European market’", is a phenomenon more than ever characteristic of a highly exigent retail market, as it’s the European market today. According to Mintel, nowadays, in Europe out of 10 new PL products launched by the supplier, 1 is premium. Pietro Poltronieri, PL Manager of Crai: “In the last 10 years our strategy has been to widen the range of Premium products in the healthcare and organic industry. We have worked on two aspects: the relaunch of already existing products and the supply enhancement. For the future, we’re moving towards a supply of green packaging: replacing polymers takes time, but it’s a necessary process that leads to lower environmental impact. When possible, we'll replace plastic with paper and, when not possible, we’ll employ recycled plastics.” Variety of choice, safety and convenience are pillars for Coop, as we can read in the 2020 Sustainable Report, where PL products (for example Fior Fiore) are described as “the core of this commercial supply is the highest expression of the Cooperative’s values”. In fact, the products are made by selected suppliers and controlled during the supply chain process. Also during the pandemic, in the most important categories for families, Coop tried to keep the price 30% lower than the average, compared to the relevant competitor brands. Besides small electrical appliances of Casa Coop line, that now has new products, the great news in the last years is the step forward of Coop Voce, young brand (established in 2007) with which the company entered the mobile phone industry: at the end of 2020, in the Coop Alleanza 3.0 area there were 798 thousands active users, +6.9%, thanks to more than 243 thousands new subscriptions. The enhancement of PL in the last decade, therefore, as remarked by Paolo Palomba of IPLC, is given especially by the change of paradigm in the relationship that distributors have with the manufacturer companies: they were counterparts to steal the highest value from and are now potential partners, instead, to create new values with, constantly striving for innovation.l

Maria Teresa Giannini, Professional Journalist specialized in Large-scale Distribution.

PLM - THE PRIVATE LABEL SCENARIO

Private label innovation

in the European market

THE PRIVATE LABEL SCENARIO - PLM

EVOLUTION OF PRIVATE LABEL In the 1990s, nearly all European supermarket companies were working on developing their own private labels to offer something distinctive and different from their retail competition and the branded product manufacturers. The core attention was to transform the private label into a trusted brand in order to achieve consumer loyalty. The strategy employed by most retailers was to start offering quality products in categories with weak brands or in categories with little or no innovation. In the next phase, the private label ranges were extended to other categories thereby mimicking brands and offering product variations.

Karlskrone beer (Aldi Ireland) and Bramwell’s ketchup (Aldi UK) copycats of the brands

PRI VATE L ABEL PROLI FER ATI ON

n Europe, the premium private label segment outperforms total market sales growth. In 2017, more than half of all worldwide new premium private label product introductions came from Europe. This underlines how important the premium factor is in Europe compared to other regions in the world. In recent years, discount retailers have also joined the game and accelerated premium private label growth by entering the market with ranges offered around the festive season. Today, an abundance of innovation comes from premium private label as shown in the 2017 Grocer’s Own Label Food and Drink Awards. In the United Kingdom, out of the 111 winning products 60 items or 54 percent were premium labels. 19

PLM - THE PRIVATE LABEL SCENARIO

PRODUCT I NNOVATI ON Food retailing in Europe is an extremely dynamic environment that responds to trends and developments in society. Therefore, constant product and packaging innovation as well as new introductions and delisting make up the daily reality for all managers involved. Innovation is no longer the exclusive domain of brand manufactures and retailers work closely together with their private label suppliers to achieve this. Retailers must respond quickly to meet shopper expectations, which has implications for brands. Larger and more professional private label manufacturers see it as their task to drive the market forward or to shake up dormant categories with new product development of their own or innovations offered by their suppliers (packaging and ingredients). It could be argued that retailers even have a certain advantage over manufacturer brands as they can innovate or imitate rapidly because they have immediate access to consumers. They have control over distribution and pointof-sale communications and in this way, they can influence perceptions of their products more easily to foster adoption. Nevertheless, very few new product launches in Europe turn out to be successful according to Nielsen. Across most categories, only 10 to 20 percent of innovations account for roughly 80 percent of new product sales. Moreover, it takes time for an innovation to make it to the market. Only three percent of retailers (and no branded fast moving consumer goods organizations) can get an idea to the market within six months, while almost half take up to two years. It is a challenge for every category manager because just as successful innovation can deliver incremental category growth, unsuccessful innovation can set a category back.

n the highly competitive European retail market, retailers have to work very hard to compete in the private label segment to attract shoppers who are both price-conscious, while simultaneously demanding more quality and added value. For this reason, a greater focus on ethical and environmental positioning can be observed. Private labels making claims related to animal welfare, vegetarian, organic, healthy lifestyle and eco-friendly consumption are steadily on the rise.According to Mintel, premiumisation has resulted in a reality where one in ten private label new

BUILDING PRIVATE LABEL ARCHITECTURES Today, retailers successfully rival brands with their private labels in both innovation and quality.

THE PRIVATE LABEL SCENARIO - PLM

product launches in Europe are now under a premium private label brand. Europe accounted for over half (57 percent) of all private label launches with premium claims globally in 2017. As discounters offer significantly fewer products in their stores compared to mainstream retailers, new product introductions become considerably more visible on the shelves. New product innovations are usually tested within a selected region or during in an in-out promotion. Subject to sales performance, the product may obtain a permanent listing in the regular assortment. Research has confirmed that product innovations are better noticed in a discount environment because shoppers do not get lost in a plethora of other SKUs offered. Aldi and Lidl drive innovation intuitively and at low cost. More importantly, they do this successfully and at very high speed. Aldi UK made an impression by winning 21 awards in the 2018 Grocer own label food and drink contest. Lidl came in second place with 19 awards. Aldi also turned out to be leading the pack in terms of total innovation with 14 awards, followed by Lidl with 13 awards. Quite an impressive result considering the limited assortment of the discounters in one of the most sophisticated private label markets in the world.

Vegan and organic

Eco-friendly

THE PRIVATE LABEL SCENARIO - PLM

SUPPORTI NG SMALLER COMPANI ES Many small and medium-sized companies (SMEs) are unable to allocate the budgets to build brands themselves. They simply cannot compete against the strong brands that dominate their respective categories. By choosing the private label route to market they can still make their products available to the larger public without having to invest in heavy marketing. In fact, it has proved how well the internal EU market works: private label allows many of these SMEs to export their products to retailers in foreign markets. It is the retailer supporting the products with his store brand that will create awareness and build trust. By allowing the SMEs to supply their products as private label, retailers support their survival and even develop in categories with fierce brand competition and active innovation. In fact, market segments such as vegetarian, free-from, eco-friendly and animal welfare private labels are the exclusive domain of small and medium-sized manufacturers.l

For more information on the subject and to order the book (hard copy or e-book) https://www.iplc-europe.com/prodotto/the-private-label-revolution-digitale/?lang=it

Koen A.M. de Jong IPLCManaging 23

PLM - FROM THE DISTRIBUTION’S POINT OF VIEW

A LET 'S HAVE A TALK WITH PL MAGAZINE AND MARCO POZZALI, PL COORDINATOR.

FROM THE DISTRIBUTION’S POINT OF VIEW - PLM

Gruppo VéGé, distinctiveness comes through wellness and premium Targeted lines in tune with market demands are the brand strategies to win the competition over distribution. Gruppo VéGé, the first group of large-scale distribution established in Italy, proved its dynamism in 2020 as well. In fact, its current turnover, once again higher for the seventh consecutive year, rose by 10.1%, reaching 11.28 billion euros, while the 2021 forecast equals 11.9 billion euros. The 2020 variation was overall significant even when not considering the new openings, with +6.9%, compared to December 31, 2019. With this result, the group has confirmed a growth rate well above the industry average, amounting to 4.2%. With 33 lead companies and more than 3,400 stores with 2.5 million m2 of total retail space, the group ranks third in Italy, in terms of number of stores, and fifth in the retail channel. In this growth process, private labels can’t help but play a key role, as Marco Pozzali, Gruppo VéGé PL Coordinator, explains. How many product categories does your brand cover ? It is the market that dictates in which and how many categories the presence of our brand is appropriate. In fact, we are particularly attentive to the data collected, weighted by the geographical distribution of the group's companies, to understand where PL develops an incidence that demonstrates the consumer's willingness to evaluate alternatives to industrial brands. To date, we actively work in 164 categories of the Nielsen product tree. However, we don’t set numerical targets for our references, other than to develop and expand a product supply that can boost the sales margin for our members, more than well-known brands can do. Let 's talk about your brands ... Segmentation in terms of supply is simple when it comes to our PL. It helps consumers and the companies of our group to easily identify differences in proposals. The VéGé brand represents the ‘mainstream’ segment that is the real alternative to the well-known brands, as the perceived product features are similar to the category leader, but obviously more competitive as regards purchase and, consequently, in price to the public. Since the stores where our brand is present are mainly medium-sized, or convenience stores, even the supply, in each category, cannot benefit from the room it would have in a hypermarket. For this reason, the goal is to have a shelf with a price that ideally would follow the concept of Edlp and, therefore, limit the promotional lever to seasonal periods, or presentation, and in the first stages of a product life cycle. 25

PLM - FROM THE DISTRIBUTION’S POINT OF VIEW

Turnover 2021 (forecast in billion euros)

Companies

11.9 Var.% fatturato 2020/2019 Constant network

+6.9

Points of sale

GRUPPO VÉGÉ KEY FIGURES

Var.% turnover 2020/2019 Current network

+10.1

33 3,409 Total sales area (sqm)

Turnover 2020 (billion euros)

2,559,298

11.28 And for the premium segment ? Here, the supervision is entrusted to the Ohi Vita brand, which covers the needs in terms of environmental and nutritional wellbeing. The supply includes, in fact, both healthy and organic products, and the complexity of building the assortment on the basis of market trends, correct communication on the packaging of the characteristics, periodic analysis, means that even those companies of the group that have their own local mainstream PL, rely on this across-the-board brand to cover a meet more specific demand. Some categories (such as wines and liquors) are also covered by some fantasy brands, where a single trademark could convey to the consumer the idea of an industrialized process, whereas the choice of producers is complex, as well as guided by evaluations at a local level. To what extent do private labels impact sales? Understandably, in our group, the impact of private labels varies according to the choices of each individual company, which are not obliged to display a minimum assortment. However, we give them all the tools they need to support their own reference market. If we look at the figures of last year, in the mainstream segment, in terms of value, we grew by 30%. Obviously, the most critical situations have pushed this trend. However, in percentage terms, during the same period of this year, it has consolidated, and this emergency has helped, not so much to increase volumes due to the lack of other players on the shelf, but rather to demonstrate the ability of our PL to satisfy the needs of the consumer, just like well-known brands do, thus creating loyalty. To sum it up, we could say that for a still ‘young’ PL, whose name is not linked to any national brand, the 26

FROM THE DISTRIBUTION’S POINT OF VIEW - PLM

critical events of the pandemic have accelerated changes, directing consumers towards local, where our brand is more established, and to try products that prove to be just as good as those of the branded industry. Where are launches and innovations heading? After the period of the health emergency we believe that attention to health and environment has by no means taken a back seat, as some seemed to claim only a couple of years ago. It is our intention to grow in this segment by placing the right value on PL partners who produce ‘wellness’, nutritional and environmental products, but also by allowing access to premium to as many consumers as possible, especially when brands are there just because they transfer the costs of fame to the sale price. Recent launches in this segment involve the world of animal welfare, with a line of ‘antibiotic-free’ sliced meats, but also an assortment of functional herbal teas, which will meet the needs of consumers who are attentive to taste, as well as the beneficial effect of infusions. What is the average duration of contracts with suppliers? Usually the relationships with suppliers of our branded products are of long duration, provided that we are able, together, to follow the market trend from all points of view: from product characteristics to competitiveness, up to sustainability in processes and packaging. All the suppliers of our PL are evaluated either through audits, inspection visits or analysis of their organization. An essential aspect in the food industry is the presence of certifications, Ifs or Brc, which are periodically monitored in the evaluation, in order to understand if the processes are constantly kept under control by the productive realities or if, vice versa, after having obtained the certification, the attention to respecting the rules decreases. Let's wrap up with sustainability... The issue of sustainability is obviously on the agenda, not only among ‘insiders’ but also among the most attentive and informed consumers. Today, the commitment is aimed at identifying what has a real impact on the environment and is not just a theme that is easy to talk about, because it is immediately perceived by most customers. The real choice is to characterize the stores with a supply where ‘wellness’ is at the core - in addition to what is briefly told on the packaging - where, whoever wants, can increase their knowledge on the related issues and the real sustainability of choices. Just explore the web, Instagram or Facebook, to verify that this is exactly what we do with our brand Ohi Vita.l

Luca Salomone, professional journalist specialising in consumer goods, distribution, shopping centres and finance. 27

PLM - MARKETS

PL pet food meets new consumer needs

Quick, effective and innovative, private labels have in recent years interpreted the new needs of shoppers by expanding the product range and segmenting the supply.

ccording to the Iri data collected in the XIV edition of the Assalco-Zoomark Report, in 2020, the Italian pet food market grew both in terms of value (+4.2%) and volume (+2%) compared to the previous year, with a turnover that exceeded 2.2 billion euros and almost 627 thousand tons of food sold. What’s more, pet shops, with sales of over 6 thousand tons of dog and cat food, amounting to 34.3 million euros, have recently been launched by a number of organized distribution brands. In these stores, as well as in all the other points of sale of the large-scale distribution and specialized chains, private label pet food has succeeded in the last few years in interpreting the new needs of the consumer in a rapid, effective and innovative way, expanding the range of products and segmenting the supply.

THE L ARGE-SCALE RE TAI L TR ADE DOMI NATES THE SHELVES WI TH A WI DE AND COMPLE TE SUPPLY Last year, according to the Iri data published in the XVII Marca Report, the pet food and pet care macro-category in PL grew both in terms of value (+1.9%) and volume (+1.6%), keeping its value share in largescale distribution unchanged at 21%. Basically, one pet product out of five, purchased in large-scale distribution, is a PL product. "In pet food our PL dominates - says Paola Monica Dimaggio, PL Manager & Sustainability Coordinator at Penny Market Italia - in fact its

n n n n

MARKETS

- PLM

HIGH DIGESTIBILITY

FRUIT AND SNAUPERFOOD TURAL SOURCE

OF VEGETABLE FIBRES

FOSPREBIOTICS AND MOS FOR INTESTINAL WELLNESS

Mini Adult with Lamb PACK SIZE KG 1,5

Try Excellence! The highest quality Italian pet food. Look for it in the best shops, supermarkets, hypermarkets and drugstores.

MERCATI

- PLM

PET FOOD TREND

+4.2% in value +2% in volume PET FOOD sales

2.2 billion € 627 thousand tons Source: Assalco-Zoomark Report, 2020

share accounts to 80% and, compared to the previous year, it has grown significantly. This is because, with our wide range of products that meet all the needs of our four-legged friends, we manage to dominate the shelves, through our brands ‘L'Allegra Compagnia’ and ‘Prodog & Procat’. In fact, ‘L’allegra Compagnia’ offers wet and dry foods that ensure everyday nutrition and well-being to our pets with a good quality/price ratio, while ‘Prodog & Procat’ offers a premium range of wet and dry foods designed to meet specific needs and made with high quality formulations. Not to mention the snacks and accessories such as litter boxes that top off the supply."

80% of Pl pet food purchases in Penny Market stores

Moroni Amato Group

www.euthalia.it

The Coccolatevi Concentrated Perfumers, with their exclusive fragrances, give the clothes an heady scent that lasts for a long time. If diluted in water and used with classic detergents for hard surfaces such as floors or windows, they give all rooms a persistent feeling of cleanliness and hygiene.

The 10 in 1 Coccolatevi Deo-Cleansers, with 70% alcohol, have been developed with cutting-edge technologies, release an intense scent, guaranteeing cleanliness and hygiene in various solutions of use.

The Coccolatevi Essence for rooms and universal cleaner, it perfumes rooms, wardrobes, drawers and car interiors for a long time. The innovative formulation with very high yield allows you to clean and perfume all hard surfaces with the exception of glass.

The Coccolatevi Concentrated Softeners make laundry softer and more pleasant to wear. The intense 5X fragrances remain on the clothes for a long time to give an heady sensation.

Unisciti a noi nella rivoluzione green!

www.coccolatevi.it

MARKETS

- PLM

THE END OF THE PANDEMIC EFFECT? If in 2020 pet food benefited from the containment measures adopted to stem the pandemic, especially in the first months of the year, the same cannot be said for these last months where the boost given by the Covid-19 effect seems to be losing ground. "In the first seven months of 2021- explains Simona Vimercati, Brand Manager of Carrefour and Exclusive Brand Manager- our assortment has seen a decrease in terms of sales and volumes compared to the previous year, a negative trend when compared to the reference market. More specifically, according to Nielsen’s data, until last July 31, purchases of dog food dropped by -16.3%, while those of cat food showed a more limited contraction(-4.3%)".

The Carrefour branded range in assortment recorded a decrease in sales and volume in the first seven months of 2021 compared to the previous year.

PL TREND IN PET FOOD AND PET CARE

21%

value share of Pl on Lcc

+1.9% in value

+1.6% in volume

1 5

in purchases is under a PL. 33

PLM - MERCATI

CO MP A RI N G P RI V AT E L ABELS

MARKETS PLM

E VER MORE I NNOVATI VE PRODUCT LI NES Just as the entire pet food market is evolving towards a specific and functional nutritional offer, the large-scale retail trade brands are also expanding their product lines with high quality, highly practical premium and super-premium items. "Innovation has always been an important lever that inspires all of our PL advancements, and pet food is no exception - states Paola Monica Dimaggio from Penny Market Italia. Indeed - she continues- what makes us the best even in the category dedicated to our four-legged friends is the fact that we are always in line with market trends and customer demands. An example is the premium line we’ve developed in the last three years, as well as the increase in the number of snacks, and the update of recipes and tastes, all of which are constantly monitored".

GROWI NG AT TENTI ON TO BR AND COMMUNI CATI ON According to a recent analysis by QBerg with IRI on the presence of some PL categories on the flyers of large-scale retail stores, pet food and pet care own a share of visibility of 16.1%, resulting in the sector with the greatest 2020 growth in relation to the previous year (+2.2%), also ahead of personal care (+2%) and grocery (+1.9%). Both on the promotional flyers and on the shelf, PL product communication plays an important role for large-scale distribution brands. "Our pet food line, especially dog and cat food, is going through by a full restyling - explains Simona Vimercati of Carrefour - which includes a new graphic look and a very impactful rebranding from the customer's point of view, with the creation of sub-brands in order to better segment the offer and specific targets: core, specialized food, premium and naturalness. The new product innovations we are focusing on in terms of new launches, coming in the next few months and throughout 2022, mainly concern the premium and naturalness-related segments.".l

Fabio Massi, journalist specialising in retail and mass market issues.

n n n n

PLM - QBERG OBSERVATORY

Pet Care

Private Label around the world

from flyer promotion to e-commerce websites

QBerg, Italian Research Institute, leader in price intelligence services and cross-channel assortment strategies, together with IRI, has analyzed the state of the art of PL on promotional flyers and e-commerce websites, comparing large-scale distribution (Hypermarket, Supermarket, Discount and Drug Specialist) and Specialists in YTD to September 2021.

according to this analysis, private label is an important lever for turnover, something retail has been focusing on for years now. Unless they display the logo or name of the brand, they are absolutely indistinguishable from the best-known store brands, whether the consumer is in front of the real or the virtual shelf. And Pet Care is no exception, indeed!

QBERG OBSERVATORY - PLM

et's start with something: PL is predominant in both Flyers (large-scale distribution and Specialists) and on the Web (especially in Specialists). We gathered all PL brands under one fictional manufacturer. What emerged? In the large-scale Flyers, PL appears as the first manufacturer, slightly more visible than the first branded manufacturer, called ‘MAN-1’ and far behind the ‘Top 5’. In the Specialists Flyer, this gap is even wider. In fact, PL alone accounts to as much as the Top 5 added together; a trend not reflected in large-scale distribution e-commerce websites, although PL boasts a very respectable fourth place in the rankings. PL visibility share for the PET CARE Macrocategory (YTD 2021@set; Qp3 Share: WEB display share)

Source: In-Store Point

his trend is not simply reflected in all the categories or in the different channels. We see in fact that in the large-scale distribution Flyer, PL is even over 30% in Dog Accessories and Cat Accessories, while in Pet Food it reaches ‘only’ 23%. In the Specialists Flyer, instead, it is the Accessories and Litter for other animals to register a Qp4 share of 42.1%, where the 26% share of Pet Food stands out. The large-scale distribution online market, on the other hand, sees an important presence of PL in Pet Food and Cat Accessories, much less so in the other categories. Cat Accessories and Pet Food are also the two categories where PL boasts a share of over 20% in the Pet Specialist online. 37

PLM - QBERG OBSERVATORY

PL visibility share for the PET CARE Category (YTD 2021@set; Qp3 Share: WEB display share)

Source: In-Store Point

his is the conclusion we have drawn by observing the data on the number of brands and unique references that have appeared on flyers and websites dealing with Pet Care in 2021. The large-scale distribution flyer is unrivalled: there are as many as 70 PL brands that have appeared on the promotional pages of this important media. Much more concentrated, instead, is the Specialists flyer, with only 28 brands.

The numbers rise up to 50 and 62, respectively for the WEB and large-scale distribution and for that of PET Specialists.

QBERG OBSERVATORY - PLM

he proportion is somehow confirmed for the number of unique references in Flyers (1908 for the large-scale distribution against 978 for the Specialists), it is totally overturned in favor of the Specialists in the online. The latter is considered an important showcase, where the specialists can more easily rotate a very high number of unique references, equal to 8393 against the 1028 of large-scale distribution e-commerce websites. Number of Unique PL references in the Macrocategory of PET CARE (YTD 2021@set; N. of brands)

Source: In-Store Point

Number of Unique PL references in the Macrocategory of PET CARE (YTD 2021@set; N. Unique References)

Source: In-Store Point

Fabrizio Pavone Marketing Manager and Business Development of QBergg

PLM - ON-THE-FIELD EXPERIENCES

The Supermarketification of Discounters.

The LIDL

case history

Fonte: Stime di IPLC su dati LZ Retailytics Source: IPLC estimation on LZ Retailytics data

“A Discount retailer is a store format that has a little assortment of goods and sells products as prices lower than the typical market value.”

TOP EUROPE AN DI SCOUNTERS T URNOVER ( B€ ) 40

ON-THE-FIELD EXPERIENCES - PLM

he Supermarketification of Discounters phenomenon appeared because between 2008 and 2014 Aldi and Lidl opened almost 6.500 stores (around 30% of their total number of stores*) and between 2014 and 2018, the number of Lidl stores just grow 8% but the turnover 35,4%**). Lidl recognized that upgrading their stores instead of opening stores in a highly penetrated market was the better investment. Source: *Statistica / ** LZ Retailytics

Source: IPLC estimation

Supermarketification means crossing the boundaries of the typical discount retail format: • New stores full of light and glass (the so called “glass palaces”). • Larger assortment (With focus on fresh, convenience and bake-off products. Offering a wider assortment of branded articles. Niche marketing of organic, free from, vegan and fair-trade products). • An opener communication with an emphasis of social responsibility and sustainability.

LI DL - ALDI T URNOVER SPLI T 41

PLM - ON-THE-FIELD EXPERIENCES

Nowadays the LIDL philosophy behind the assortment has as main pillars the Regular assortment and In & Out promotions (Food & Non Food) crucial to bring traffic and excitement. While the P.L. architecture is built on three main categories: Fantasy labels (quality equals the brand), Premium Private Labels (as part of the regular assortment or as In & Outs) and Theme based Private Labels (Bio, Italian, Greek, etc. as part of the regular assortment t or as In & Outs).

Fantasy Labels are part of the high turnover assortment, cover the main necessities as alternative to the National Brand with equals quality (price min. < 30%) using category cues (e.g. key articles in the range, colors of packaging) while Budget Private Labels are only used in very rare cases. The Premium Private Label are within the same Private Label assortment but with a premium lay-out

In & Outs Premium Private Label are as least as good as the Brand quality, are in Cross categories and are connotated as product innovation thanks to a strong international cooperation. Some articles are listed for several weeks, as Seasonal products the Christmas represents 67% of sales and Eastern the last 33% of sales.

ON-THE-FIELD EXPERIENCES - PLM

LI DL PRI VATE L ABEL ARCHI TECT URE AT A GL ANCE

T he p s y c ho l o g y o f t he In & Ou t s Almost half of the SKU's that are in-store are from In-Out promotions and permit discounters to sell a larger number of articles in their relatively small stores. The products involved have a higher average price and margin and also increase the average shopping basket. But most of all: they attract consumers and create an unique store experience! T he e ff i c i e nc y o f f o o d In & Ou t s pr i vat e l a b e l The presence in different countries is used to source and guarantee quality and quantities. Due the use of limited stocks LIDL is able to speed up rotation of low rotation articles in comparison to Common Retailers. Due the international cooperation all volume is brought together optimizing production and negotiation. A lot of products are part of a specific country, which makes quality definition and control much easier. Finally, there is a clear tendency of LIDL starting their own production to guarantee quality and supply as in Softdrinks (MEG), Ice-cream (Bon Gelati), Bakery products (Bon Back), Chocolate (Solent)and will start to produce Coffee. Ta k e away s LIDL is the biggest retailers of Europa and discounters will continue to grow quicker as their competitors during the next years. LIDL have an unique offer of: Regular assortment with a very high PL share, Non Food In & Outs, Food In & outs. The Supermarketification lifted LIDL turnover and was very well accepted. Sustainability and Social Responsibility are on top of the agenda. LIDL is still a Discounter loyal to its original values adapted to the nowadays

Robertus Lombert IPLCPartner and former General Director of Private Label @Lidl Portugal 43

PLM - FROM THE INDISTRY’S POINT OF VIEW

LET 'S HAVE A TALK WITH PL MAGAZINE AND DIODATO FERRAIOLI, HEAD OF E XPORT SALES

FROM THE INDISTRY’S POINT OF VIEW

- PLM

La Doria,

a business plan based on PL Logistic and productive efficiency to guarantee punctuality and reliability to customers is what has consolidated the company positioning also during the Covid-19 pandemic.

talian multinational of canned vegetables and first European business of red sauces and canned legumes for the retail channel and first European producer of PL sauces, with a turnover of 848.1 million euros in 2020, attracting even the interest of Investindustrial, La Doria is listed in the Star segment of the Italian Stock Exchange Market (MIBTEL). Being the main player in the Italian food industry, La Doria is also the biggest Italian company of contract manufacturing. Its point of view, therefore, is also a privileged observatory on the phenomena that cross the world of the PL, as Diodato Ferrarioli, Head of Expor t Sales, explains. In your core segments that are red sauces , canned vegetables and juices , how have the needs of distribution changed recentl y ? The evolution that the private label has experienced in the last years has made it a valid alternative to the industrial brand for the consumer, not only for its prices combined with good product quality, but also for its assortment and type of service offered (formats, sustainable packaging etc.). In the food industry, PLs are facing a dynamic phase, they’re increasingly advanced and considered as a real brand, a means of value, quality and sustainability. The trend is increasingly addressed to the premium segment, aiming at quality raw materials, Italian spirit and sustainability, concerning supply chain and packaging. In other words, sales are not determined only by prices anymore. Your group has lots of clients from abroad. In how many countries does the company work today and what are the most dynamic ones? And what are the ‘ strongest ’ in terms of sales , besides Ital y ? The foreing market is for La Doria number one reference channel, which generates over 80% of the revenues. The company operates with important shares in North Europe (65.7%), Rest of Europe (8.9%), Australia and New Zealand (4.5%), Japan (2%) and aims to enhance its presence in high-potential markets such as USA, Asia and Far East, 45

PLM - FROM THE INDISTRY’S POINT OF VIEW

with specific products, linked to the tastes and local consumer habits. In the UK, La Doria, is the first export company of PL tomato products and canned legumes (baked beans), while, in Australia and Japan, it is the first export company of tomato products. And what about the overseas development plans in terms of new markets? In addition to consolidating the shares achieved in the company's historic markets, La Doria has been committed for several years, as mentioned, to enhancing its presence in high-potential markets. Our group is investing in different development projects that involve product lines of high added value and with significant growth profits. By analyzing the competitive scenario of the company, La Doria Group places at the center of its mission the consolidation of its positioning in the canned food industry at an international level, leveraging on its Italian spirit and tradition, looking at innovation and improvement of existing recipes. How has Brexit affected your business? As far as Brexit is concerned, at the end of 2020 we signed an agreement that avoided the obligation of import duties that could have represented a severe problem for the commercial exchanges with the United Kingdom. In the first months after the agreement the only perceived effect was custom clearance time. On the other hand, there has been the introduction of new custom practices that, besides increasing costs, slow down the procedures at the borders. However, our presence in loco in the British territory, through our controlled LDH, which has recently built an automatic warehouse in Sproughton (Suffolk), near Felixstowe harbor, is becoming a competitive advantage, especially in a context of uncertainty and change.

FROM THE INDISTRY’S POINT OF VIEW

- PLM

I imagine that a partner with the size of La Doria has long or ver y long term contracts , as well as product design and suppl y. Let ’ s talk about it... Our business model is mainly focused on PL and, for this reason, we define ourselves, not only as simple suppliers, but also as real and authentic partners of the retailers we keep a constant and lasting dialog with. That is why we have started to broaden our selection of added value and services, and this made us react to the changes of the demand and build both trade and customer loyalty, as important drivers for development. The constant innovation of PL service products, in line with new consumer trends, is undoubtedly one of our strengths. We offer our client a specialistic know-how in the production of PL products and high flexibility in the customization of recipes, packaging, and service. Through this sinergy with the Italian and international large scale distribution, we are able to build long-term relationships and reach higher economic efficiency, offering an increasingly complete service oriented, not only towards production, but also to product innovation through a profound knowledge of the final consumer, aimed at detecting the new market trends. And what about innovation? As for product innovation, we have mainly focused on the packaging, to respond to the increasing demand for sustainable products with lower environmental impact, exploring new materials and new application technologies. For example, in 2020, we launched 124 development projects of new products with and for our clients. Today, the market has embedded a new pattern/variable, that is sustainability. How did it affect your designing activit y ? Sustainability is a core topic for our organizational culture, a factor that drives all our company processes, from the selection of raw materials to the final product. Finding tangible results and performances that we gradually want to improve is our commitment. We’ve been producing in-house boxes and tinplate lids for packaging our product for more than 50 years. By doing so, we’ve reduced CO2 emissions from the transportation of the materials coming from external suppliers. With our in-house production we can reach 95% of the total need of our tinplate boxes, which is an endless recyclable material. The labels of our products are printed with water-based paint, to lower the environmental impact of every single product component in our factories as much as possible. Moreover, we use glass and brick made of recycled paper (combi) to pack our tomatoes, which are more and more requested in the foreign market. Our supply chain is ‘loyal’ because it completely suits our sustainable values and commitments. Since 2016, La Doria Group has checked and reported the results obtained in this field through the publication of a Sustainability Report. l Luca Salomone

PLM - MARKETS

PL ready sauces between innovation and tradition

by Fabio Massi

The changed consumption habits of Italians after the Covid-19 pandemic and the restrictive measures to contain the infection contributed to last year’s increase of sauces and ready-to-use dressings. The greater amount of time that consumers spent at home and the increase in home-made meals have certainly boosted this industry. Equally divided into traditional and innovative supplies, this industry is in fact able to respond to the new trends, something also shown by PL products. In 2020, according to Iri data, this industry recorded sales of just below 400 million

n n n n

Nowadays, PLs are a valid alternative to industrial brands for consumers, not only for their economic convenience and growing qualit y, but also for their highly practical content in terms of formats, pack aging and supply segmentation.

MARKETS - PLM

euros, equal to +9.8% growth compared to the previous year. PLs are playing an increasingly important role in the market of sauces and ready-to-use dressings. Today, they are a valid alternative to the industrial brands for consumers, not only for their economic convenience and for their growing quality, but also for their highly practical content in terms of formats, packaging and supply segmentation.

A story with the tomato at its centre 1954: Our story is born from the artisan tradition, in a world of carts, wooden crates, hard work and human effort. A world that is about to change, as machines replace horses and production lines become increasingly modern and efficient. The way we work changes, but the tomato does not. It remains the undisputed king of our region. Men and women do not change, either: their hands still weave the magic that bewitches, transforms, preserves.

2020: La Doria is the leading European retail producer of peeled and chopped tomatoes.

www.gruppoladoria.it

MARKETS

- PLM

THE CONSUMER FAVORS BI O AND HI GH-END PRODUCT S Traceability, organic supply chain, natural ingredients and Italian origins are all elements the consumer doesn't want to renounce, also when buying PL sauces and dressings. “It is an important and wide compartment, with different dynamics - affirms Pietro Poltronieri, PL Product Manager of Gruppo Crai - our PL lines are performing well and consolidating the market share. The premium and biological segments are the best growing categories. Today, PLs are leaders in volume and often the main reference on shelves. The choice of the product, the qualitative standards and the role they have on the shelf become essential to have positive performances. The dynamism of the supply in terms of recipes and flavors, and upward segmentation are fundamental for innovation. In the last months, as far as sauces are concerned, we have boosted the premium segment of our ‘Piaceri’ (Pleasures) line and increased our presence in the organic industry.” COMPARING PRIVATE LABELS

Distribuzione Moderna. Retail in real time. The first online newspaper for suppliers and retailers.

www.distribuzionemoderna.info

MARKETS

- PLM

u +7% Despar PL

sales in this compartment in August 2021

u Crai: premium

and bio better grow among PLs

TOWARDS SUSTAI NABLE PACK AGI NGS AND SI MPLE RECI PES After 2020, that was a very particular year, in which household consumption of products linked to the ‘main course’ was driven by the forced closure of restaurants. In the first months of this year with the easing of restrictive measures, there has been a physiological rebound of the demands and, according to Iri data, between January and April 2021 the sales of ready-to-use sauces recorded a slight contraction compared to the same period of last year (-1.6%). “In August , the sales of PL products of this compartment showed positive growth, above the market trends (+7%) - says Lui g i Bo r e l l i , Pr o d u c t Ma na g e r Fo o d o f De s pa r I t a l i a - mainly driven by vegetable sauces/spreadables and dressings for meals. On the other hand, the ready-to-use sauce segment is stable, for now,

PLM - MARKETS

while mayonnaise sales, which during 2020 saw a double digit growth, are decreasing. In total, the share of PL references exceeds 16 percentage points, in line with the market trends.” In these months, the PL sauces and seasonings lines never stopped innovating, offering new products for the assortment. “Generally, we’re strongly working on the control of the existing supply - explains Pietro Poltronieri of Gruppo Crai - with a main focus on more and more sustainable packaging and cleaner recipes. At the same time, within our revision plans of the categories, we’ll deal with the segment of spreadable vegetable sauces with the aim of enriching the supply of squeezee formats. Moreover, we aim at the premium segment in the ready-to-use sauces area.”

AN I NCRE A SI NGLY WI DE AND QUALI TATI VE A S SORT MENT According to Luigi Borrelli from Despar Italia, innovation is fundamental to guarantee supplies in line with the needs of the market and to offer the consumers a wider PL assortment at excellent quality: “In the last year, there has been news concerning our sauces and dressings. In fact, we have widen our supply of Despar Premium sauces with the launch of five new references (Sea Bream, tomato and Taggiasca olives sauce, Chianina Igp beef sauce, Clams sauce, Norcina sauce with truffle and Norma sauce, with aubergines, tomatoes and ricotta cheese), in addition to pesto sauce, always by Despar Premium brand, and the recipes and formats of our dressings. Furthermore, we have 54

MARKETS

- PLM

launched a new organic reference, Scelta Verde Genovese pesto bio and a new Despar Premium dressing for rice salad. Another very successful innovation is our Despar Premium soy sauce, made in Japan, available in low-salt too. Finally, the graphic system of all our sauces and mayonnaises have been completely renewed, and today they are more modern and appealing.” l

+9.8%

Sauces and ready-to-use dressings sales: 400 million euro Source: Iri, 2020

Sales Trend

-1.6%

Source: Iri, Jan-Apr 2021

PLM - EXHIBITIONS

MarcabyBolognaFiere

grows and is back

in the field by Federica Bartoli

Internalization will be one of the pillars of the 2022 edition, a chance for buyers and exhibitors to consolidate their partnership and expand their business.

fter the ‘online’ interlude due to the pandemic emergency, MarcabyBolognaFiere, the international trade show dedicated to PL products, sponsored by Bologna Fiere in collaboration with Associazione Distribuzione Moderna (Adm), is back in the field. The show, which will take place from 19th to 20th January 2022, is at its 18th edition and will boast an exhibition area that, in addition to the traditional pavilions, 25 and 26, will expand to new areas and include the pavilions 28, 29 and 30. Internationalization will be one of the pillars of the 2022 edition, in line with the Marca Digital Session that last year, although online, was a great opportunity for buyers and exhibitors to consolidate their partnership and expand their business. “ Today, our exhibition is one of the

EXHIBITIONS - PLM

reference events in Europe for this industry - explains Domenico Lunghi, Exhibition Dir. b.u. Private Label, Food & Pet Industry Bologna Fiere - its success is reflected in the fact that in the last five editions it has doubled in size, growing by over 20% in 2020 alone when it covered almost 25 thousand net square meters of exhibition area.” At present, the attendance seems promising, with over 400 exhibitors having already registered. After the great success of last year, the second edition of Marca Fresh, the innovative format entirely dedicated to the fruit and vegetable industry, is also confirmed. The event, promoted and directed by the counselling society specialized in fresh products, Sg Marketing, in collaboration with Bologna Fiere and Adm, will cover a 600 square meter area of pavilion 29. Before that, a conference with the title ‘Supporting the Fruit and Vegetable compartment: large-scale distribution and production’ will be held, and, through a cross-sectional analysis from the point of view of trade and consumers, will provide a set of best cases and strategies for this industry. The Marca Tech initiative, dedicated to the intermediate goods for the PL supply chain is also confirmed and - continues Lunghi - "it will involve packaging manufacturers that will present their ever more innovative and low-impact packaging solutions”. The 18th edition of Fiera Marca will be preceded by a series of webinars and seminars addressing the topics and the most significant market trends for companies through the Marca Training Program. Finally, an important role will be played by the technical-scientific Committee, composed of the main labels of the organized modern distribution sector, which will establish the strategic lines of the event and will be in charge of drawing up the Commercial Brand Reportthe report on Marca Commerciale that every year identifies the main Italian and international PL trends.l 57

PL Magazine October 2021

Articles inside

QBerg Obervatory Pet care. Private Label around the world. From flyer promotion to e-commerce websites

Interview with the company La Doria, a business plan based on PL

Private label scenario Private label innovation in the European market

Editorial PL towards a new identity

IPLC Obervatory Is it possible to build an alley between industrial brands and pl products?