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Conad Sees Massive Surge in Private-Label Growth

By Branislav Pekic
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Conad Sees Massive Surge in Private-Label Growth

Italian retailer Conad has seen 156-per-cent growth in its private-label brand over the past decade, taking its market stake from 19.1 per cent to 27.2 per cent, according to data by IRI.

This result has been achieved despite a 0.1-per-cent drop in private-label sales for the first time in more than 30 years in Italy, to €10 billion.

This negative trend is mainly due to the economic recession and the increasing promotional pressure of industrial labels. Exceptions to this trend are premium-quality (+7 per cent) and biological (+8.5 per cent) products.

Conad’s private-label sales grew 7 per cent year on year in value and 5 per cent in volume. The growth is across the board, from the 'traditional' Conad Red Logo (+1 per cent), to Conad Percorso Qualità (+3 per cent), to Conad il Biologico (+23 per cent).

Significantly, 95 per cent of the 225 products in Conad's Sapori & Dintorni range are of Italian origin. This includes vegetables, milk and derivatives, and canned vegetables. Recently introduced product lines, such as Conad Kids and Piacersi, as well as Creazioni d'Italia (created exclusively for foreign markets), have also performed well.

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Fruit and tinned products are the best-performing categories, with double-digit growth. In particular, fruit and vegetables increased by 13 per cent in value and 20 per cent in volume, while preserves grew over 13 per cent in value and 11 per cent in volume. Cheese grew more than 9 per cent in value, while sliced meats grew by more than 5 per cent in value and 6 per cent in quantity.

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

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