Retailer concentration is a key driver of private label growth as size and scale provide the mechanism to underpin the economics of the private label model.
In markets where retail concentration is high such as the UK, France, Germany, and Switzerland there is a strong correlation between the penetration level and the sophistication of private label ranges in the country.
As retail chains seek to grow in international markets, they export their private label model and expertise into developing and emerging markets. By offering quality private label ranges they are able to build consumer trust and loyalty in the Store banner.
It has taken almost 40 years for private label to reach the current penetration level of over 40% in the UK. In many Central and East European markets, the combination of modern retail formats, the rapid growth of the discount store and multinational retailer presence has resulted in private label shares already approaching the 20% level after less than 20 years as consumers are increasingly buying into the improved quality and value for money offer of the private label proposition.
McBride is well positioned to support and benefit from this future growth opportunity through
In the emerging markets of China, India and South East Asia currently with very low levels of private label penetration, it will be the expansion of international chains with strong private label heritage that will drive Private Label expansion.
Note: Based on selected mature and emerging markets; f-forecast. Estimated shares of MGD sales; may exclude fresh produce.Source: Planet Retail Ltd - www.planetretail.net; partly based on Nielsen and GfK
McBride is well positioned to support and benefit from this future growth opportunity, with manufacturing units in both Central and Eastern Europe, China and the recently acquired factories in Malaysia and Vietnam.
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Note: Includes sales from Grocery and Health and Beauty only partly estimated.