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Private Label International - Summer 2010

Market Report

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New EU Organic Logo Debuts

A new European Union organic logo is replacing the old logo seen on many private label organic items featured in this issue. The new organic logo, a certifying symbol for organic products in the EU, replaces the first one launched at the end of the 1990s, according to the European Commission website.

In 2007, the idea of fostering the organic farming sector by introducing a compulsory EU organic logo received the necessary support from all Member States. To find an original design that would be appealing for all European consumers, the European Commission decided in 2008 to organize an EU-wide organic logo competition. It was open to art and design students from all EU countries and 3,422 design students took part in the competition.

Approximately 130,000 votes were cast for the new EU organic symbol during an open online voting system to select the winner. The German design student Dusan Milenkovic won with his logo “Euro-leaf”, which received 63% of the overall votes from the European public.

The EU organic farming logo offers consumers’ confidence about the origins and qualities of their food and drink and its presence on any product ensures compliance with the EU organic farming Regulation.

From July 2010 the EU organic logo is obligatory for all organic pre-packaged food products within the European Union, although it may still appear on some products as they clear through the supply chain. It is also possible to use the logo on a voluntary basis for non pre-packaged organic goods produced within the EU or any organic products imported from third countries.

ALDI Ireland Introduces Organic Private Label

Discounter Aldi in the Republic of Ireland has introduced a new private label for regionally sourced organic dairy products, according to Planetretail.com. The new Liskeel brand comprises several yoghurts made from organic milk in Ireland. Aldi Ireland has also launched Irish meats under the Nature’s Isle brand. Aldi recently started promoting Irish products under the slogan “Best of Ireland”, featuring prominently its producers, including Irish Yoghurts, Western Brand Group, Gleesons Group, Largo Foods, among others.
“We’re committed to building strong relationships with local suppliers, wherever in the world our stores may be and we source, wherever possible, the very best fresh produce from the very best local suppliers,” Aldi states. “In 2009, five of our products were awarded Blas na hE’ireann Irish Food Awards.”

REWE Launches Pro Planet Label

German retailer Rewe has announced the introduction of a new sustainability label called Pro Planet, reports Planetretail.com. The label will be used to highlight existing private label ranges whose manufacturing process is characterized by sustainable methods and responsible use of resources. Initially to be introduced in fruit & vegetable departments in Germany, the label will be gradually rolled out to other product categories including both food and non-food such as clothing and papers, and across all of Rewe’s store banners. Following the launch in Germany, the label will also be introduced abroad, beginning in Austria.

Pro Planet was developed in co-operation with the Centre on Sustainable Consumption and Production (CSCP), a joint organisation of the United Nations Environment Program and the Germany-based Wuppertal Institute for Climate, Environment and Energy.

Speaking on Rewe’s sustainability forum in Berlin, CEO Alain Caparros said: “We are hoping to give impulses for environmentally friendly and sustainable consumption with a range of sustainable products.” He emphasised that the company was planning “to take sustainable products out of their niche existence” by proving “that sustainable products can be sold at affordable prices.” Rewe hopes to sell a total of 500 million products with the label by the end of 2011, corresponding to a daily average of around 800,000.

Shanghai PL Fair Set For December

PLMA has announced the 2010 Shanghai Private Label Fair will be held December 8-10. Retailing is expanding in China rapidly with retailers opening new stores in cities across the country. While market potential is huge, private label is still in its infancy.

The Shanghai Private Label Fair, a new venue for private label in China created by PLMA in conjunction with the Shanghai International Sourcing Promotion Center, will provide a way to make contacts and build business in China. The show will help companies meet buyers from China’s leading retailers and wholesalers as well as trading companies and manufacturers in China who are looking to partner with western suppliers.

To help exhibitors understand the marketplace in China, PLMA will conduct a comprehensive briefing on retailing and current consumer trends. Exhibitors will then visit key supermarkets and hypermarkets. Major retailers in China will participate.

The 2010 Shanghai Private Label Fair will be held at Shanghai Mart. For more information contact Anthony Aloia, PLMA trade show director at 212-972-3131 or email: shanghai@plma.com.

ICA Norway Adds Daymon

ICA Norway, one of the four largest retailers in Norway with a 10% market share, has selected Daymon Worldwide to develop and manage its Private Brand and Fancy brand assortments. The company operates more than 1,000 stores across four banners, and is the only international retail operator in Norway – the others are exclusively domestic. “Part of our vision and strategy as a company is to continue to focus on international growth and this new addition nicely rounds out our portfolio,” says president and CEO Alex Miller. “We now operate in 22 countries outside of the U.S.”

“Daymon has a long 40-year history of being a progressive company, looking ahead of trends and open to evolving our business to address current industry challenges and the needs of our partners,” says Miller. “The business is ever growing and evolving, and Daymon is at the forefront of this evolution to ensure we meet all our customer needs. We have always been known as change agents, and this addition to our growing portfolio is yet another example of how we continue to move forward.”

Tesco’s Fresh & Easy Launches EatWell

Tesco’s Fresh & Easy Neighborhood Market has launched EatWell, a line of 17 new healthy, ready-to-eat prepared meals and sides in the US, Supermarketnews.com reports. The range includes salads, soups, noodle dishes, entrees and other options, with most options selling for USD3.99, a Fresh & Easy spokesperson said. The EatWell range has been designed to contain fewer than 500 calories in each item as well as less than 25% of the US recommended daily allowance of fat and sodium, based on a 2,000 calorie diet.

Auchan Russia to Export Private Label

Auchan Russia has announced that it will export its private label brands manufactured in Russia to its other stores in Central and Eastern Europe via a newly created export department, according to Planetretail.com. The first stores to receive these goods are those in Ukraine. The retailer will export private label cheese, cottage cheese, butter, pasta, canned vegetables, disposable wipes, shampoos and skin creams. After Ukraine, the retailer will export these products to Auchan outlets in Hungary, Romania and Poland.

Rewe Launches Line in Czech Republic

Rewe Group’s discounter Penny Market in the Czech Republic is introducing an economy private label line, which is understood to be positioned below its existing discount lines, according to Planetretail.com. The range is called ‘PR!CE’ and will initially comprise six products, including yogurt and dishwashing detergents. It is marketed under the strapline ‘`etYíme pro Vás,’ (Savings for you). The simple, uniform packaging design resembles brown and white cardboard boxes with barcode imprints.

Waitrose Tests Small Format

John Lewis-owned Waitrose will open its first small convenience store in Cambridge this summer, according to Planetretail.com. The 3,000-square-foot store will focus on three key areas - food for immediate consumption such as sandwiches, salads and deli products; food for later consumption such as its Menu From range and fresh meat and fish; and everyday items such as health and beauty care and household cleaning products. The Cambridge store, located on Fitzroy Street, is the first of four trials (all measuring between 2,000-4,000 square feet). Waitrose has already opened five larger convenience stores ranging in size between 5,000-7,000 square feet.

Anthony Wysome, head of convenience at Waitrose, said: “We’ve just announced our business results showing a very successful year, in which we’ve made the brand more accessible to more people in more places. We know that there are still over 6 million customers who want to shop with us. This move will enable us to be more flexible in reaching new locations across the UK with an offer that whilst smaller, will maintain the highest standards of Waitrose quality, service and shopping experience.”

Otto Disposes of Privileg

Germany-based retail and mail order company Otto Group is to sell the Privileg private label trademark to brand manufacturer Whirlpool, reports Planetretail.com. Otto Group had acquired the well-known German private label for home appliances in November 2009 from the insolvency assets of former Quelle (Arcandor). Whirlpool and Otto Group have also entered into agreements that will entitle the Otto Group to sell Privileg-branded home appliances through all sales channels of Otto Group. The sale to Whirlpool is subject to approval by the competition authorities.

Auchan Alcampo Launches Gluten-Free Range

Alcampo has launched a range of 15 gluten-free products in Spain which includes chocolate croissants, baguettes and loaves of bread, according to Planetretail.com. The range has been created for its Auchan private label designed for coeliacs. These products will be sold at both Alcampo and Simply Market stores. The retailer already sells 270 items for coeliacs, of which 120 are of its “Vivir major” or "Live better" Auchan private label range. Alcampo plans to continue developing its gluten-free range throughout 2010.

Casino Launches Douche Gourmande

Casino has launched a "Douche Gourmande" sub-brand of bathing products based both on pleasure and "naturalness," reports Planetretail.com. The range of products is "inspired by nature" and the "ingredients" are prominently displayed on the packaging. Shampoos and shower products contain lemon, figs and there are "gourmet" fragrances such as crème brûlée and red berry tarts. The collection is typically "me too" and replicates similar attributes to national brands such as Ushuaia, Palmolive Naturals or Timotei

Cover Story
Esselunga: Supermarket Trailblazer

Italy
Italian Specialties from Esselunga

Denmark
Hot Drinks

Germany
Specialty Foods
RTE Cereal
Frozen Convenience Foods

Spain
Baby Care
Household Products

Trade Fair Reviews
PLMA’s World of PL, Amsterdam
InterCool, InterMopro, InterMeat, Düsseldorf
MarcabyBolgnaFiere
Marca Blanca, Madrid and Private Label 2011, Berlin
Frozen Food International, Spain
Own Label Show, London
Private Label Suppliers Show, Tokyo
SIAL, Paris

Trade Fair Reports
MDD & DPH Expo 2010, Paris

Departments
P.O.V.
Market Report
SupplySide Report

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