Market Report

Waitrose opens dedicated beef production facility
In June, Waitrose, Bracknell, England, said it began producing frozen beef from its own dedicated production facility, ensuring full traceability and one of the shortest supply chains among UK supermarkets. Said to be a first for the industry, the new facility means all fresh and frozen beef for Waitrose now will be handled entirely by a single supplier, shortening the distance between the farm and the supermarket shelf. The state-of-the-art operation also is fully integrated, meaning the entire production process – from the cattle to the packaging – will be managed by Pontefract, England-based Dovecote Park, which has been supplying the retailer with fresh beef since 1997.

Colruyt consolidating 50 own brands under new label
In May, Halle, Belgium-based Colruyt Group said it began consolidating more than 50 of its own brands across a wide number of categories – including Eldorado (juice), Galaxi (Cheese), Lisa (paper products), Belsy (cookies) and more – under the new Boni Selection brand. Packaging for the brand will boast a "modern, clearly recognizable" design that will make it easy for customers to find products under the brand.

Colruyt said it will complete the consolidation by the end of 2015. All of the company's banners – including Colruyt, Spar, OKay and more – will offer Boni Selection on their shelves.

Tesco, China Resources Enterprise mulling Chinese retail operations merger
In August, Cheshunt, England-based Tesco PLC and China Resources Enterprise Ltd. (CRE), Hong Kong, said they were in exclusive talks to combine their Chinese retail operations to form the leading multi-format retailer in China. The partnership would involve CRE's combining its CR Vanguard business, which currently operates 2,986 stores across China and Hong Kong, with Tesco China's 131 stores and shopping mall business.

According to Tesco and CRE, the proposed joint venture would create a business with sales of about £10 billion, in which CRE and Tesco's effective interests are expected to be 80 percent and 20 percent, respectively.

Co-operative Group revamps food range
The Co-operative Group, Manchester, England, revamped its range of own-brand food as part of a drive to compete better against Tesco, Sainsbury's, Asda and Morrisons, all of which have invested strongly in their own-brand food products. At press time, the retailer noted that the revamped brand – now named Loved by Us – would begin to hit shelves in September and comprise as many as 700 lines by Christmas.

ALDI introduces Nespresso-compatible coffee pods in Swiss stores
On its website in May, ALDI Süd, Mülheim an der Ruhr, Germany, said it introduced a line of coffee capsules in its Swiss stores under its 100% Espresso brand that are compatible with Nespresso single-cup coffee makers. Supplied by Mauren, Liechtenstein-based Superespresso, which owns the Martello coffee brand, the line comprises five varieties – Ristretto, Vivace, Aroma Lungo, Supremo and Decaffeinato – and is available in ALDI Suisse's 163 stores.

Sainsbury's extends 'by Sainsbury's' range across general merchandise
London-based Sainsbury's began expanding its by Sainsbury's range across its general merchandise lines beginning in August, and will continue to do so over the next two years. The initiative, which the retailer announced in July, follows the success of the brand in the retailer's food categories, with 97 per cent of shoppers reportedly purchasing foods and beverages under the brand. It will include a mix of existing, improved and new products.

Introduced in food categories last September, the by Sainsbury's brand will fall in between two other own brands in the general merchandise space: basics (entry-level products) and Collection (high-quality kitchenware, home goods and cookware). Products under the brand will provide simple and essential everyday products that exceed customer expectations for quality and value, Sainsbury's explained. New product designs will be carefully developed, sourced and selected, providing a reassuring feel of quality, substance and integrity – all core hallmarks of Sainsbury's own-brand products.