Walmart owned European supercenter ASDA is preparing to create international Private Brands that will be sold throughout Walmart’s grocery chains around the world. The first categories to be overhauled will be beer, alcohol, beverages, cereals, snacks and cookies. They will be followed by candy, canned foods, soft drinks, deserts and baking products, vegetables and meat and frozen food in November.
This move comes a little more than a year after Walmart relaunched and redesigned its flagship Private Brand, Great Value. Great Value has been seen in several countries throughout the world including Mexico and India so it will be interesting to see how these new brands interact with the American created Great Value. If Walmart chooses to use ASDA as a development arm for Private Brand throughout the world it has the potential to be a game changer for Private Brands in the US.
Asda’s “Free from” range will be redesigned in December. The Walmart owned supermarket redesigned its premium Extra Special range with new recipes and packaging last year.
Asda global chief marketing officer Rick Bendel told the English trade magazine Marketing Week that the supermarket chain was looking to develop five or six international Private Brands that would be sold globally through Walmart owned chains.
Bendel says that in the UK, Private Brands are part of marketing while in other countries they are seen as viewed as downmarket imitations of branded goods.
He says that Private Brands are more developed in Great Britain with penetration approximately 50%, compared to 15% in other countries.
Asda is also preparing to redesign its UK Private Brands to improve its quality perception, according to reports. The first categories to be reworked will be the beer, alcohol, beverages, cereals, snacks and biscuits.