Food producers have submitted proposals to the Russian government aimed at limiting the share of retailers’ private labels.
According to the document, producers are demanding that the share of private labels in the product range be limited to no more than 25%.
This is because the growing share of such products is making it more difficult for traditional producers to get onto the shelves of chain stores, which was already a challenge: retailers impose strict requirements on maximum purchase prices and other product parameters.
At the same time, the quality and taste of food produced under retailers’ private labels are often inconsistent or subpar, experts note.
It follows that the higher the share of such products in turnover, the fewer choices consumers have.
At the same time, the Association of Retail Companies (AKORT) has responded to these concerns.
Their main argument is that currently, the share of chains’ private labels in their turnover is approximately 15%, maximum 23%.
Meanwhile, in other countries, this indicator is significantly higher. For example, in the UK, private label products account for approximately 44% of the total product range, in Germany 41%, and in France 34%.
It appears that the problem is currently greatly exaggerated, as Russia has not yet even come close to the levels seen in other countries.
Retailers believe that limiting the share of goods produced and sold under private labels could negatively impact the food industry.
After all, retailers, despite everything, do not produce their own products, but order them from other companies. Therefore, the introduction of any restrictions would only be a non-market interference in the market, experts note.
At the same time, the growth of private label products is currently noticeable in virtually all segments.
For example, such products are often found in the canned and frozen vegetables, mushrooms, and fruit categories.
At the same time, analysts note that not all products offered by retail chains under their own brands are popular with consumers.
Companies are currently reviewing their shelves and seeking to remove products that are not in high demand.
