The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.
Learn moreEuromonitor addresses your unique questions and challenges across all B2B and B2C industries and geographies through custom, tailor-made research projects, designed to your specific goals.
Learn moreJul 2015
US$1,325Added to Cart
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!
This briefing covers the growing focus of leading food companies on power brands. These are products which have large value sales and are strongly associated with their market. Power brands are a crucial driver of revenue, as a result of their visibility within stores and reputation as category leaders. With retailers strengthening their private label lines, it is now more important than ever to own power brands, which may cause a fundamental shift in company strategies.
Files are delivered directly into your account within a few minutes of purchase.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.
Power brands are essential to a number of food’s leading competitors. For example, sales of Heinz’s tomato ketchup account for 15% of the company’s total sales. Such brands remain too important to ignore.
In Western Europe and North America, grocery retailers are highly consolidated. Wal-Mart in the US, for example, has a 26% share of retail sales, while in Germany, the top three grocery retailers account for 53% of total sales. Simultaneously, retailers are looking to rationalise their store space, which includes delisting SKUs. Manufacturers cannot afford not to be stocked by the leading retailers. This gives retailers leverage in negotiations on pricing and in-store advertising.
Private label ranges are becoming more popular, and their market share is growing in a number of sectors, such as ready meals, chilled processed meat and other staples. This sales growth is coming at the expense of branded products.
As a result of retail consolidation, more mergers, such as that of Kraft and Heinz, could occur in the future, as manufacturers look to leverage the reputation of their brands to influence retailers.
At the same time, brands that are not associated with category leadership may be sold off by leading companies, as they offer low growth prospects and more recognisable products present better opportunities.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.