Industry News / Retailer News / News

Premium Private Label On Canada's Horizon

August 15, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

A Euromonitor International analysis last month of the private label landscape in Canada found that premium and super-premium lines are expanding rapidly in the country and are expected to continue to blossom for the next two to three years.

The report, A Touch of Class: Private Label Packaged Food Raising Its Game In Canada, was done by Senior Canada Analyst Svetlana Uduslivaia. She said a combination of economic factors and the arrival of Target would play big roles in the growth story.

"Looking ahead, and especially within the next two to three years, at least two factors will support the further development of high-quality, super-premium private label packaged foods," the report says. "These are, firstly, the slow pace of economic recovery, high levels of household debt, and the resultant more cautious attitude towards spending by many Canadians. And secondly, the expected opening of Target stores in Canada, which feature a strong private label portfolio and are likely to put further pressure on existing retailers seeking to maintain and grow customer traffic, as well as grow profit margins in view of upcoming price battles."

The report says retailers such as Walmart Canada are seeing more high-income shoppers at their stores to save money because of the economic pressures at home, and that trend is expected to last at least the next two to three years.

"However, these consumers are still seeking out higher-quality products," it says. "As such, the further development of super-premium private label ranges and in-store merchandising strategies can help to better attract the attention of this increasing consumer group, looking for small luxuries at an affordable price."

The addition of Target to the Canadian landscape will force all retailers to raise their game, it says.

"With its strong private label portfolio, including premium-positioned foods, (Target) will put further pressure on retailers to maintain/grow consumer traffic and seek competitive advantage and profits," it says. "While the extent of the impact Target's entry will have on Canadian grocery retailing and fast moving consumer goods is still subject to debate, the initial response to Target's pop-up shop in Toronto has been highly positive."

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

Recent Articles by Chris Freeman

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

November 2014 New Non-Food Products

This month's new non-food product are bottles and hair care.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB October 2014 cover

October 2014

The October 2014 issue of Private Label Buyer includes new perspectives on produce, as well as category insights on pasta, rice, and potatoes. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px

PLB Marketplace