Supermarkets | Private brands at the fore

From flour and yogurt to coffee and hamburger buns, private label products can be found in all sections of the supermarket. And retailers are stepping up their efforts more than ever to expand their range, promote it and make it more attractive, helping to gradually change the perception of consumers who attach the label of “low-end products” to these items.

Nathaelle Morissette
Press

“Earlier, house brands were at the bottom of the shelves. There, we lifted them up,” explains Caroline Cadoret. This “professional couponer,” founder of the Facebook group Couponomizer à l’année, made this observation during her weekly grocery store rounds.

Mario Bélanger, a consultant in the field of retail trade and distribution, examines the flyers of different brands on a weekly basis. The man who until recently held the position of CEO of Mayrand, assured that he had never seen so many compliments, irresistible or nameless products highlighted in promotions. He made the same observation as Mr.^me Recently Cadoret: Private label orange juice occupies more space in the supermarket than national brand orange juice. “Retailers are giving more visibility to their house brands. They are very popular,” he noted. And the brands – at IGA and at Metro and Loblaw (Maxi and Provigo) – are all certified Press They intend to invest more energy into their brands and add new products.

In these inflationary times, consumers looking for ways to save are likely to embrace these low-cost brands, and their perception of them will also change,’ said Jordan Lebel, associate professor of food marketing at Concordia University.

“Consumers are now willing to give house brands a second chance. A decade ago, private labels were positioned as entry-level for people who wanted to stretch their food dollar as far as possible because they often came from lower socioeconomic backgrounds, he explained. Today, private labels are truly positioning themselves as a viable alternative to national brands for everyone. »

In fact, in the fall, Loblaw will mark the spend with an ad campaign focusing on two of its brands: President’s Choice and No Name. But Johan Heroux, senior director of corporate affairs and communications at Loblaw, was reluctant to give further details. This holiday season, one hundred new items packaged under the President’s Choice label will hit shelves. Currently, while the brand has 4000 products, there are 1000 that the consumer will find in No Name’s yellow packaging.

At IGA, over the past two years, efforts have been made in product display. “We changed all the Compliments brand packaging and introduced the Panache brand to replace Sensations,” explained spokeswoman Anne-Hélène Lavoie. The aim is to further develop the brand. This is part of plans to have more private label products. “Currently, the symbol has “several thousands”.

Same story at Metro, which has an inventory of over 4,800 in-house products. ” [Dans le segment des collations]We are in the process of developing a range to meet these new needs,” explains Marie-France Gibson, Metro Private Labels Vice President.

A “copy-paste” of a national brand?

On the other hand, retailers who have their products made by outside manufacturers — often companies that specialize in making products for private labels — claim that their recipe for ketchup, for example, is not a “copy-collar” from the famous Heinz.

“We need to do better with production, M^me Gibson. It has to be tasteful, efficient, attractive and you have to be able to compete with the big guys with huge budgets. It is a continuous effort. »

“It’s not a pale copy of an idea…it’s really about having the best product possible,” adds Johan Heroux.

“When they released their Le Décadent cookie to compete with a national brand, Loblaw executives assured consumers that it would be made with 50% chocolate chips,” recalls Jordan Lebel. “They didn’t want reform cheap About the national leader, he adds bluntly. They really wished they could outrun him. »

“We have made an ambitious promise to consumers. I think private labels should come back so that people feel it’s worth switching supermarkets for that brand. »