In the report he said: “By building strong brands through our own products, we offer customers increased value, choice and quality. Customers trust our brands. They are loyal to our brands because they know what to expect from them and what they stand for.”
The report also revealed that Both Tesco Finest and Tesco Value brands are each worth more than £1bn in annual sales.
Clarke also asserted that its brand portfolio provides a “key point of differentiation from our competitors” and adds credibility to Tesco’s moves into new service areas such as banking.
Toward that end Tesco has launched several new brands in the pet food and ice cream categories without the Tesco name. The goal is to produce successful products that could appear on shelves of non-competing stores, such as gasoline stations and garden centers.
The initial “venture brands” include La-thams dog food, NutriCat cat food and ChokaBlok ice-cream. “Our own-label business is very mature, so we’re looking at what’s next,” said Sidonie Kingsmill, brands development director for Tesco.
“Our venture brands are very different to own-label; they will never be “me-too” products,” she said. “We look at where the customer opportunities are, where brands are not succeeding and what we can do in addition to brands. We’re in a unique position as the biggest retailer, with access to the best suppliers worldwide.”
Product marketing with print advertising, sampling and websites, only lists the grocer as the stocker. All three brands will debut in central European Tesco stores during the summer.
The first of the brands Chokablock was created by the English brand agency Mayday who were responsible for developing the brand name as well as the brand identity, packaging design and structural design. The 5 different flavors are generously packed ‘chok’ full of quality ingredients and lots of goodies – from real chocolate pieces to chocolate chip cookie dough chunks, crunchy delights like sweet honeycomb and swirls of delicious sauce. The brand name says it all and is supported by a square pack structure inspired by a chunk of chocolate, with block style graphics and tasty product photography.”
Mayday Partner Barry Gillibrand says: ‘There’s a very clear proposition. It tastes great and it’s packed ‘chok’ full of the best ingredients. The design reinforces the brand proposition through the pack structure and the way the type and imagery work together to create a graphic block.”