Own label makes return to featured promotional space: brands are still promoting hard, but now retailers are beginning to push their own-label lines in high-profile promotional spots once more

Grocer, April 25, 2009 by James Ball

After holding relatively steady for several months, the number of own-label products on promotion is once again soaring, according to figures from our new-format brand-tracking Promo Dynamic research.

Supermarkets are once again moving their own-label lines to aisle ends and other high-profile featured space. The number of own-label promotions has risen 12.9% since last month, and is 28.2% up on this time last year, increasing own-label's share of total promotions from 16.9% a year ago to 19.4% now.

But this rapid growth still falls massively short of the surge in activity from the brands promoting hardest. Cadbury, sitting in top spot, is running almost 80% more promotions than last year, and is discounting its products more steeply than last month, with the typical saving 31.1% compared with last month's 26%.

The slight fall in Cadbury's promotions month-on-month (-3.4%) was eclipsed by Nestle's much more significant post-Easter fallback in promotional activity.

Though Nestle retained the second spot by a significant margin-due to its Easter boost, the number of lines on promotion in featured space has fallen back 37.1% since March, though it is still up on comparison with last year.

By far the greatest year-on-year increase in promotions came from Johnson & Johnson, which is in the midst of an aggressive campaign that has taken it from 43rd most promoted brand last month to 3rd place now. The personal care brand is running more than three times the number of promotions it did last month, and 45% more than this time last year.

Its discounting was also among the steepest in the top ten, at 45.2%, significantly above the typical 35.6% this time last year.

Elsewhere in the top 10, the promotional activity that accompanied Birds Eye's revamp earlier in the year is starting to tail off. The number of promotions is just over half that of last month, down 22.3% against last year, though the average saving remains fairly constant.

Walkers, down to 10th spot from 5th last month, and Mars were the only other top 10 brands with fewer promotions year-on-year.

The overall level of promotional activity remains high as supermarkets continue to expand the amount of promotional space available. The total number of promotions this month was 6,472, significantly up on the 5,784 this time last year. The typical discount has fallen slightly--from 33.5% to 32.7%--as more lines are on promotion.

RANK
(LAST                        NO. OF   CHANGE    CHANGE       AVERAGE
MONTH)   BRAND               PROMOS   M-O-M %   Y-O-Y %   % OF SAVING

1 (1)    Cadbury                345      -3.4      79.7          31.1
2 (2)    Nestle                 198     -37.1      44.5          28.9
3 (43)   Johnson & Johnson       87     234.6      45.0          45.2
4 (6)    Mars                    86       8.9     -26.5          24.4
5 (4)    McVitie's               85     -41.0       2.4          45.2
6 (7)    Muller                  83      15.3       7.8          48.4
7 (3)    Birds Eye               80      45.9      22.3          36.4
8 (10)   Fox's                   73      40.4      28.1          39.0
9 (8)    Heinz                   70      22.8       6.1          31.6
10 (5)   Walkers                 68     -15.0     -20.0          26.7

Total own label               1,255      12.9      28.2          30.0
Total brands                  5,217       5.1       8.6          35.3
Total                         6,472       6.5      11.9          32.7

RANK                         AVERAGE %   AVERAGE %
(LAST                        SAVING 1    SAVING 1
MONTH)                       MONTH AGO   YEAR AGO

1 (1)                             26.0        31.5
2 (2)                             27.6        32.0
3 (43)                            30.0        35.6
4 (6)                             20.9        27.6
5 (4)                             37.0        39.1
6 (7)                             41.7        43.3
7 (3)                             33.1        32.6
8 (10)                            37.0        -0.5
9 (8)                             22.2        31.9
10 (5)                            30.2       -45.2

Total own label                    2.1        31.7
Total brands                      32.9        35.3
Total                             31.0        33.5

Compiled far The Grocer by Assosia, Promo Dynamic captures secondary and featured promotional space across the UK's leading supermarket chains--Asda, Morrisons, Sainsbury's, Somerfield, Tesco and Waitrose--on a weekly basis. For more information please contact Kay Staniland on 01708 444840, email promo@assosia.com or visit www.assosia.com