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Europe leads private label premiumisation

Published:  25 April, 2018

The quality of private label wines are on the up – and Europe is leading the pack.

According to new Mintel research, Europe accounted for over half (57%) of all premium private label launches globally in 2017, way ahead of the US (22%) and Asia Pacific (16%).

Katya Witham, global food and drink analyst at Mintel, said the evolution of consumer buying habits means that “consumers expect [private label] to be on a par with, or even surpass, the quality of national brands”.

In response, retailers are looking to “upgrade their private label ranges as consumers shift from a purely low price approach to weighing a product's overall value proposition.”

Private label ranges are often the preserve of supermarkets, tailored to fit regional tastes or a specific niche.

The Mintel research also showed price is no longer the only reason for consumers to purchase private label.

A greater emphasis is now placed on value for money at the quality end, with things like provenance and premium ingredients helping to create more margin opportunities for retailers.

Overall, Mintel found only 11% of all global private label food and drink launches carried a premium claim in 2017, highlighting the importance of premium positioning in Europe compared to other regions.

“Private label is one of the main areas where retailers can create a point of differentiation and stand out in an increasingly competitive retail market,” Witham continued.

“There are ample opportunities for retailers to use premiumisation to capitalise on shoppers’ increasingly sophisticated tastes and to redefine consumer retail brand expectations. With conscious consumption going mainstream, premium private labels with provenance, heritage ingredients, and craft credentials can justify a higher price tag for many consumers.”