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Insight of the Day: Private label growth for wine & Champagne continues

Main Points

  • Private Label on the Rise: Across Europe, private label products (retailer's own brands) are significantly outperforming major national brands in all key alcohol segments, including wine and Champagne.

  • Cost-of-Living Impact: Consumers are increasingly choosing private label options as the cost of living squeezes budgets.

  • Promotions Don't Guarantee Success: Despite increased promotions by both private labels and national brands, overall sales have decreased, indicating promotions may not be the most effective strategy.

  • Private Label Gains Ground in Pricing:  The price gap between national brands and private labels is narrowing due to frequent promotions and rising prices.

Implications

  • Opportunity for Retailers: Private label alcohol provides a chance for retailers to capture growth and increase market share.

  • Innovation is Key: Retailers and brand owners need to focus on innovation, shopper experiences, and creative marketing to drive long-term growth, rather than relying solely on promotions.

  • Category Dynamism:  Expect continued disruption in the alcohol market as private labels gain traction, and lines between alcohol and non-alcohol beverages blur.

Additional Insights from the Data

  • The growth of private label across various FMCG categories (not just alcohol) shows a broader consumer shift towards value-driven options.

  • Zero and low-alcohol private label offerings are likely contributing to this growth, aligning with health and wellness trends.

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