Private label key to breaking into Nordic Markets

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FoodAlert - Capturing Key Trends in the Global Food and Drinks Market

Private label key to breaking into Nordic Markets

Article Date: 10/05/2013 

 

Nicolas Ranninger, Stockholm, Bord Bia-Irish Food Board

In contrast to European countries such as Germany and the UK, private label penetration in the Nordic markets is quite low. This reflects smaller market sizes and the presence of strong A brands.

However, in recent years, some significant growth in the market share of private label has been evident. This is being driven by retailers and wholesalers building a stronger relationship with their customers. And increasing their revenue and profits by offering lower prices, matching quality whilst being corporately responsible. All major retailers such as ICA and Axfood have included the development of PL in their corporate strategies.

In order to overcome the strong market share of national A brands, entering the PL market can be a solution to break into the Nordic market. Some of the Nordic food manufacturers that control the national A brands include, Findus the ready meal manufacturer, Arla the dairy cooperative, Fazer and the bakery and confectionary manufacturer.

The Nordic PL sector offers opportunities to enter a growing segment, shorten the supply chain between manufacturer and retailer, and seek national distribution

A comprehensive guide on the private labels in the Nordic region is available upon request. It includes information on key PL trends, main Nordic PL manufactures and contact details of main PL buyers of the retail and food service sector. Please contact nicolas.ranninger@bordbia.ie



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