Laura Brody, Paris Office,  Bord Bia – Irish Food Board

According to a report by Symphony IRI, private label share is rising across Europe, particularly in Spain and the Netherlands, where private label accounted for over 50% of sales growth. In France, private label value sales increased from 29.7% in 2011 to 30% in 2012 and LSA sources estimate the value of private label FMCG products in French retail at €23.5 billion in 2011.

AC Nielsen International Director, Georges Ferronnière explains that standard private label is growing to the detriment of entry price products because French consumers - 81% of who monitor their food budget carefully - and are looking for value for money rather than the lowest price. The increasing popularity of drive and online shopping allows consumers to classify products according to price and drive-ins alone were responsible for 31% of private label growth in 2012 (Source: LSA).

Following this trend, retailers are no longer satisfied to simply copy the national brand and are developing differentiated ranges that are in keeping with consumer trends such as organic, fairtrade, local etc. Retailers are looking for high quality innovative products for their private label ranges, in all sectors, particularly chilled and fresh where private label is driving growth, in order to stand out from national brands and capitalize on the current trend. By working closely with suppliers, French retailers also use “design to cost” methods to reduce design and logistics costs while reducing their carbon footprint.

Irish suppliers can capitalize on their well-established knowledge of private label business with UK retailers to enter the French market, build on relationships with buyers and later introduce branded products.

Learn more about private label in Europe at the Bord Bia Private Label Conference on 14th March and showcase your offer at MDD Expo, Paris on 9-10 April. To register for these events, please contact stephanie.lahad@bordbia.ie.