FRANCE: OWN-LABEL BRANDS CONTINUE TO WIN GROUND

Article Abstract:

According to Secodip, own-label brands continue to gain ground in France. By value, own brand products gained 1.4 points in the market share of overall super- and hypermarket sales of consumer staples and chilled self-service products in the one-year period ending June 1998. By value, own-label brands have an estimated 20.3% share of the market according to Secodip. These products have the biggest market share at Intermarche with a 28.3% market share (by value) for consumer staples and chilled self-service products, followed by Casino (24.3%), Carrefour (23.6%) and Geant (20.5%). Qualitative improvements of own-brand products (in both packaging and product quality) help to explain this progression. They have also benefited from the upswing in overall household consumption, as well as poor sales of discount products which are becoming less and less popular with consumers. Own-brands offer true competition to manufacturer-branded products. Manufacturers of branded products are fighting back through increasing advertising investments. In addition the concentration in the sector should also prove beneficial.. As for own-brand products, in order to inspire loyalty within the retail network, they should follow the example of Reflets de France at Promodes which created a highly-valued image.

Comment:

Discusses own label business activities

Product information, Supermarkets and Other Grocery (except Convenience) Stores, Retail Trade, Supermarkets, Intermarche, Promodes S.A., IMG, Casino

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FRANCE: REVIEW OF THE ORGANIC PRODUCT MARKET

Article Abstract:

Pushed by retailers and manufacturers, the organic product market is continuing to grow in France. This small market has a bright future. The sales value of dry organic products is growing 23.3% annually, while sales of health food products are dropping 2%. The vitality of this market and its development outlook is increasingly appealing to retailers and manufacturers. Carrefour, Monoprix, and Auchan are among the retail chains which are heavily involved in the organic food cause, with their own brand product lines. Carrefour is now selling 85 of its own brand products, and 20 of these are in the chilled foods section. This line generates 20% of its sales value. The private labels, all retail chains combined, are gaining ground in organic products. Their dry organic foods value market share now represents 13.6% for the twelve months ending 7 June 1998, calculated monthly, compared with 4.6% one year earlier. Excluding cereals, which are down 15.8% in value, up for the twelve months ending 7 June 1998, calculated monthly, the other dry organic food segments show double-digit growth. Spreads are the fastest-growing segment, up 71.5% in value, followed by bars - chocolate bars and dried fruit - up 62.8%, basic products are up 49.5%, and hot drinks are up 32.8% according to ACNielsen.

Department Stores, Auchan S.A.

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FRANCE: ORGANIC FOODS ARE GROWING

Article Abstract:

Organic products are growing in France due in part to repeated food crises and the rejection of genetically modified organisms. Although organic products represent only 0.5% of the total food market at present, its turnover of more than FFr 4bn is growing by 25% to 40% per year. According to ConsoScan Iri Secodip, all segments benefit from this rise in organic products - particularly organic frozen products, skyrocketing 182% in the twelve months ending 24 October 1999, followed by semi-chilled products, up 70%, chilled products, up 57%, and dry foods, up 22%. Retailers are well aware of organic foods' vitality. Monoprix and Carrefour have already invested this buoyant market with their private labels, becoming direct competitors with small and medium-sized companies. Major food groups appear to focus rather on rational agriculture.

Product standards, safety, & recalls, Forecasts, trends, outlooks, Brief Article, Societe Centrale d'Achats

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