Private Label news from Safeway and Tesco.
Safeway is bringing a custom package shape for ice cream to private label, according to an article by Jim George in Packaging World magazine. Safeway has introduced a custom carton shape for its 48-oz containers for its own ice cream brands that works together with photography to create product differentiation on the shelf. This is significant, says George, because private-label packaging generally features stock components and typically relies on strong photography and vivid color reproduction to ramp up the graphic intensity while also minimizing costs. Conversely, popular thinking has been that national brands therefore could gain a marketing leg up on private-label products by investing in custom package shapes, notes George. But Safeway’s new ice cream container is one sign that the playing field might be on the verge of leveling out, because the retailer found a way to achieve a custom shape while also delivering production efficiencies and cost savings.
Tesco has surged past rivals in Ireland as shoppers have opted for cheaper private label, according to an article that appeared in the Irish Examiner in December. Aldi and Lidl also increased market share over the last year, according to figures from consultancy firm Kantar Worldpanel. Private label products now make up a third of Ireland’s spend. Aldi and Lidl grew market share to more than 18 percent and more than nine percent respectively in the last year. Tesco, however, grew nearly six percent to a market share of 27 percent.