Own brands have about 30% of supermarket products

For consumers, they provide savings between 18% and 42% compared to the manufacturer’s own brand.

The distributor’s brand, popularly known as white label, is gaining more and more importance. The ETT Adecco report reveals that it has increased its presence in supermarkets by 27.3 percent and that, if it was 7.7 percent of total products in 1991, it reached 30 percent last year, according to data from the consulting firm Nielsen. Namely, there are already large areas where own production quotas of up to 35% are being developed.

This had a direct impact on employment, according to Adecco. So, if the number of employees in the sector, about 487,200 specialists, fell by 4% compared to the previous year, private label manufacturing companies retained their workforce. Moreover, in the first months of 2009, they recorded an increase of between 10 and 15 percent. Increasing sales meant they needed additional staff. Of course, profitability is reduced, since they sell more volume, but with a lower profit margin. For the consumer, however, these products offer savings between 18% and 42% compared to the manufacturer’s own brand.

The company’s own brands are the ones most affected by this situation. According to Alimarket, they reduced sales by about 4.1%, and it is expected that it could fall to 10%. The main reason is that large distribution chains are removing a significant portion of these products from their shelves, which also affects employment, staff restructuring, closures and relocations to other countries. On the other hand, the temporary employment of the leading brands decreased last year compared to 2007 by 19.9%, which contrasts with the stabilization of the demand of private label manufacturers and the recovery of 6% in the first months of this year. .

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