As part of our dedicated Private Label Issue, ESM spoke to industry leaders at a number of retailers across the continent, about why they believe private label continues to set the pace in European retail. This article first appeared in ESM's May/June 2023 edition.
Chief Commercial Director, Private Label, Pingo Doce (Portugal)
The current inflationary situation has led many customers to embrace private labels. What trends have you noticed at your company?
In periods of crisis or inflation, such as the one we are currently experiencing, the weight of private label tends to grow due to the great confidence that consumers have in our brand, and because they recognise its excellent quality/price ratio. This is precisely what we have been witnessing.
Since the first months of last year, we have recorded a substantial increase in the consumption of private-label products, which represented, in 2022, nearly 27% of sales.
In what product categories have you seen the highest private-label growth, and why?
In this context, our private-label products that are registering higher demand include groceries such as pasta, rice, oil, and olive oil, for example.
How are you seeking to adapt your private-label offering to cater to both value-hungry and premium shoppers?
Innovation is part of the genesis of Pingo Doce private label, and therefore we seek to have the latest trends in our stores, always with the best quality/price ratio.
As a retailer that reaches thousands of people every day, Pingo Doce constantly assesses not only national and international consumer trends, but also the evolution of world retail and innovation. This in-depth monitoring enables us to identify the different needs and changes in consumer habits.
Historically, we know that at times of budget constraints, we also have great opportunities in the indulgence segment. To respond to this, we developed a premium range of biscuits with Belgian chocolate, under our brand Pingo Doce Iguarias.
What new private-label product launches or campaigns have proven particularly successful over the past year?
In 2022, Pingo Doce maintained its commitment in differentiation and innovation in its assortment with the launch of 176 private-label SKUs, of which we highlight Go Active protein pudding, Pingo Doce dairy-free ice cream, and the facial serum with Bakuchiol Be Beauty – a vegetable alternative to retinol – making Pingo Doce the first retailer in Portugal to make this product available under private label.
I also point out that Go Active peanut butter was awarded in the ‘Best of the Best’ category in the European Private Label Awards, as the most innovative product of the year.
© 2023 European Supermarket Magazine – your source for the latest private-label news. Article by Stephen Wynne-Jones and Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.