Portuguese food retailer and distributor Jerónimo Martins Group (JM) will strengthen its focus on private-label products with over 200 launches and relaunches.
According to the chairman of the board of directors of JM, Pedro Soares dos Santos, private label brand currently accounts for about 40 per cent of sales, but the prospect is that in the next two years, it will reach 50 per cent.
He also announced that the group will "reintroduce competitiveness in the milk market in Portugal", as he believes that there is currently a monopoly.
Last year, JM announced its intention to enter the agrifood production business, planning to invest €50 million per year in areas such as dairy, cattle production and aquaculture.
Earlier this year, the group made the first investment, with the acquisition of a milk-processing plant in Portalegre, from the production company that supports Serraleite, one of the dairy-product suppliers for Pingo Doce supermarkets.
The operation is currently awaiting the green light from Portugal's Competition Authority. If approved, JM will get its own private-label milk supplier.
Despite a market that is characterised by food-price deflation, JM plans to invest €100 million, half in the new logistics centre in Valongo and the remaining 50 per cent for the opening of ten new Pingo Doce stores. This value is part of the €500-550 million investment package planned for the current financial year, to be spent "on organic growth".
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic.