Own‐Label in the UK Grocery Market

Abstract

Over the last decade there has been an increase in the development of products sold as own label brands. The major UK grocery multiples have successfully employed this strategy, gaining more than half the grocery market with their own branded products. Supermarkets have strengthened their own‐brands by changing their no‐frills, low‐cost strategy to one of quality at a competitive price. This trend has made a major impact not merely on the fmcg sector, but also on the alcoholic market including wine. Consumer research by the supermarkets has addressed both the contents of the bottle as well as the packaging. Labels on own‐label wines have had much attention paid to them on the quest to reflect a more upmarket image. The acceptance of the own‐label brand by consumers is a serious threat to established brands as own‐label brands are likely to grow at the expense of manufacturer brands.