Own brands are no longer only option in the crisis and conquer Brazilians

Before an option only in moments of crisis, now the own brands are becoming a permanent alternative in the cart of the Brazilians. Large networks such as Grupo Pão de Açúcar (GPA) and Carrefour are working to expand the recipe in the segment, expanding partnerships with the industry and launching hundreds of products this year alone. " Previously, consumers sought deals and lowest prices on own brands. Today, in the country, the stigma of inferior quality of these products has been overcome, "says the Director of area in the Carrefour Brazil, Allan Gate. The Group has four brands in the food and beverage segment: taste, Quality Selection & and Carrefour. The Director of GPA's unique brands, Wilhelm Kauth, the stamps market leaders tend to be stronger here than abroad. "In Brazil, it's almost a ' inheritance '. Hinder the expansion of own brands "reports. Owner of networks such as Pão de Açúcar and Extra, the Group has five unique brands in the food segment: Qualitá, Taeq, Club des Sommeliers, Finlandek and Casino. The strategy of supermarket giants involves a significant increase in the supply of items of own brands mainly in food and beverages. The price for the consumer, according to Kauth, gets to be 30% to 35% cheaper than the leading brands. In the case of Carrefour, the projection is to launch approximately 450 only products this year. "Within the overall planning of the group to grow in this segment, we will launch from premium items to food of great penetration in the homes. Today, we don't have masses of own brands, for example, but we're running behind, "says the Executive. The GPA already wants to introduce about 500 of new exclusive brand products on the net in 2019. "We have a mission to launch a brand per year in the segment," Kauth. To this end, the Executive points out that the group works to raise the number of industry partners, from the current 150 to 170 to 200. "In the last two years, we've noticed that suppliers, especially small and medium-sized, are more than doubling revenues to invest in new technologies and production processes to meet the demand of own brands. And we want long-term partners to ensure the quality of products. " The Chairman of Carrefour, ponders that of 100 broad categories of food and drinks, the Group operates in half of them by means of own brands. "We put our team in the field to develop more quickly. Today, we took about six months to begin to produce and deliver to the market. " He points out that the process of choosing suppliers is extremely insightful. "To ensure quality with a good cost, the audit is heavy", assures. The Director of GPA reinforces the thesis. "The consumer always search what's new in supermarket. But ensure that offer depends on both of us as suppliers. The crucial point in this project is the Alliance with the industry, which is very important in the whole process, "he explains. "Our ambition is not to be an option for the economic crisis, but a permanent alternative." Two strong trends follow trends in the segment of own brands. Both premium categories – widely supplied by imports – as those with healthiness appeal gained prominence in the portfolio of networks. According to the Director of the GPA, one of the major focuses of the group for the coming years is the healthy eating segment. "Of the total releases in exclusive brands for this year, about 100 will be products with healthy appeal", he adds that Kauth prices of organic products in General, in Brazil, become prohibitive and the Group invests to increase in category. "The challenge is great to offer organic items with competitive price, but we are working to democratize these products." For Gate, the expansion of the private label segment passes by Healthfulness. "For us, the concept will carry over for all our own brands in order to be able to offer differentiated products."