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Private Label

Private Label Loses Ground in Portugal

By Branislav Pekic
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Private Label Loses Ground in Portugal

After strong growth over the past years, private label brands are starting to lose ground to manufacturer brands in Portugal, according to data from AC Nielsen.

The market share of private label brands in 2014 amounted to 34.6 per cent, down 2.3 per cent on the previous year. In the same period, manufacturer brands grew to 65.4 per cent, thanks to increased promotional activities and adjustments of the offer to the consumption profile.

Last year, 36.7 per cent of overall food sales in Portugal - or around €4 billion - was achieved through promotional activities, the director general of the Portuguese Association of Distribution Companies (APED), Ana Isabel Trigo de Morais, told daily Diario Economico. This compares to the €3 billion in 2013, or 27.4 per cent of total sales resulting from promotions.

According to Trigo de Morais, the retail market in Portugal lost one per cent in volume, reaching €18.9 billion. The most affected segment was food retail, dropping 1.2 per cent to around €10 billion, mainly due to the effect of the deflation which is penalising food products.

© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic

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