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Private Label

Private-Label Sales In Brazil Grow To Almost €1.5 Billion

Private-label sales in Brazil grew by 15.6% in 2016, to R$4.6 billion (€1.2 billion) – a trend that should be repeated in 2017, with turnover set to reach R$5.3 billion (€1.4 billion).

However, according to data from Nielsen, published by DCI, the share of private label in the Brazilian retail market is still low, at 5%, compared to a global average of 16.1%.

This growth has been due to a change in the shopping habits of Brazilian consumers, who have been buying fewer branded products and opting for cheaper items, including private-label goods, instead.

Growing Sector

The Nielsen study indicates that 48% of the segment's expansion came from new buyers, while retailers have also invested in the launch of new brands and products.

Last year, 58 new private-label brands and 2,190 new products were launched. Around 85% of these private-label brands are offered at below-average prices.

With eight private-label brands and more than 3,000 items in the category, Brazil’s second-largest retailer, Grupo Pão de Açúcar (GPA), has seen an increase in demand for GPA-branded products over the last few years. Sales of its exclusive Qualitá brand grew by more than 5% in the first half of 2017.

GPA intends to continue investing in the segment, and in future, the focus will be on boosting the product portfolio of the Qualitá and Taeq private-label brands.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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