To hell with real Heinz ketchup

Some swear by the real, real Heinz Ketchup. No question about choosing a different brand bottle to save a buck or two. Other households only buy Lay’s potato chips. Sometimes it’s Le Sieur’s peas that would never be replaced by a can of other colors. To each his own.

Posted at 7:17pm

But the moment inflation hits us head-on in every line of food, whims and demands evaporate.

Whether in Europe, at home or to a lesser extent in the United States, supermarkets are all experiencing the same phenomenon. Your customers fight inflation by naturally preferring the offer and massively resorting to so-called private labels. These brands are owned by the retailers. Think President’s Choice at Maxi and Provigo, Irresistibles at Metro and Super C, or Compliments at IGA.

Their prices are usually lower than national brands, which explains the sudden surge in popularity.

In a matter of months, consumers have changed their habits enough that the President of Loblaw (Maxi and Provigo) mentioned the phenomenon during a discussion with financial analysts in May. Galen Weston then clarified that sales of the unnamed brand (the famous bright yellow packaging) are “reaching unprecedented heights”. However, he did not quantify the increase in sales.

On the IGA side, house brands are “on fire right now,” an executive recently told shareholders. And the growth of their sales “is much faster than that of national brands”.

It’s a similar story at Metro, where we also see private labelare going very well,” says President Eric La Flèche.

In France, consumers have adopted the same behavior, observes data company Kantar. The shift towards private label mainly concerns mustard, pasta or oils, three foods whose prices have exploded due to the weather and the war in Ukraine.

“National brands took advantage of COVID-19 because consumers wanted more security but also a little convenience. But in March, that trend reversed: all the ground that brands had gained they lost in a month. It’s huge,” a vice president of Belgian supermarket Delhaize told the trade publication. retail detailin May.

In the United States, the phenomenon is more mixed but still present: 21% of consumers have turned to private label to fight inflation, according to a study conducted in April by Caddle and IRI Canada. This compares to 47% of Canadians.


For the shareholders of the three Canadian food giants, the statistics on sales of private label products are not irrelevant. Because they generate higher profits than national brands like Kraft, Heinz, Ritz, Lays’, Oreo, Campbell’s, Philadelphia, Coca-Cola or Hunt’s. When you control the entire chain and eliminate middlemen, it inevitably costs less. You can also choose cheaper ingredients or packaging.

In short, even if the consumer saves, the supermarket collects more money.

So it’s no coincidence that Loblaw is so committed to his President’s Choice brand. Its new products are advertised through a magazine. The latest, distributed in May, includes 100 novelties. The launch will be accompanied by a TV and radio advertising campaign starring Galen Weston.

Screenshot taken from youtube

Loblaw President Promotes New President’s Choice Products.

Private label now generates between 30% and 40% of total sales for the Ontario giant, which launched 850 new products (including pharmacy products) in 2021. It’s enormous.

Metro and IGA are more discreet. But Metro is showing its two brands Selection and Irresistibles extensively in its flyers these days.

These brands are a good solution to reduce your grocery bill. At Maxi and Provigo, the President’s Choice brand is 20% cheaper than the national brand, while the no-name brand offers 40% off, says Johanne Héroux, spokeswoman for Loblaw in Quebec. At Metro, we’re talking about an average savings of 15%, while IGA didn’t want to give a number because “it varies.”

Let’s take ketchup as an example, the condiment par excellence of the summer hot dog.

When the shopping cart is overflowing every week, every euro saved makes itself felt in the end. The same applies to inflation: each small increase added to the previous one appears in the budget.

Especially since the pace of ascent has accelerated since the fall. The last time food inflation stayed below 3% was in August.

We haven’t experienced such a price increase since autumn 1981.

Inevitably, such a shock provokes unprecedented reactions in the rays. It remains to be seen whether the new habits will catch on and how the multinationals will react.

Anything new in your fridge?

call everyone

Have you changed your grocery shopping habits by introducing more private label products? do you fight back Why ?

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