I what is perhaps the most bizarre private brand move of the year UK based retailer Tesco has dramatically shifted its value/budget private brand strategy. The new strategy includes the launch of 7 new brands named after fictional “farms.” The move comes as the retailer reacts to the growth of German discounters Aldi and Lidl.
The seven labels comprise 76 new lines across fresh produce, meat and poultry that will either match the price of competitors or beat them. Where there is duplication, the products will replace those in its existing Everyday Value “basics” private brand.
The brands include:
- Woodside: fresh pork
- Willow: fresh chicken
- Boswell Farms: fresh beef
- Redmere Farms: vegetables
- Suntrail Farms: imported fruit
The new brands steal strategy from the discounter while ignoring the macro trends of transparency and authenticity that are impacting much of the food market. The move comes four years after Tesco Value – the £1bn private brand of cheap/basic products was relaunched as Everyday Value.