Discounters & private labels gaining ground

ABFI has welcomed new EU regulations on labelling alcohol products, but criticised Ireland's measures once again

Discounters Lidl and Aldi can now boast an increased share of the Grocery market to 12.1% in the 52 weeks ending 17th February 2013 from 10.8% in the year to 12th February 2012, according to figures from Kandar Worldpanel.

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This compares with market leader Tesco which increased its share of grocery to 28.2% from 27.8%.

The discounters’ growth appears to be at the expense of Dunnes whose market share fell from 23.5% to 22.7% and Superquinn (5.7% to 5.4%).

However multiples’ private label alcohol sales have also increased significantly over the past three years going from a 15.0% share of the total grocery alcohol spend to 16.3% and now standing at 16.6%.

Kantar Worldpanel states that trading down has become a key theme in 2013 as shoppers switch their spend from branded to standard product lines.

Private label sales themselves now constitute some 4.8% of the Long Alcohol Drinks market in the off-trade (MAT to December 31st 2012) according to figures contained in a recent Nielsen Ireland report into Private Labels here, Nielsen Total Coverage, SP, Mat Dec 2012.

“This represents an actual value sales growth of 6.3% versus last year with Lager & Cider the key drivers of this growth,” explains Nielsen’s Elaine Wade, Business Unit Director at Nielsen Ireland, “Lager still accounts for the bulk of the PL sales at 4.0%, but cider is growing strongly, plus 18%..”

Private labels are now responsible for 8.9% of spirits off-sales while they’re responsible for 15.1% of wine off-sales.
“Vodka and gin represent the highest proportion of the PL spirits share at 4.1% and 2.8% respectively,” comments Elaine, “Vodka continues to growth year-on-year but there is also strong growth for smaller sectors gin and brandy.”

The Nielsen report finds that Private Label LADs comprise just 0.4% of total Convenience store value while for Spirits the figure is 2% but for wine it’s 12.8%.

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