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Price difference a-brands and private labels is growing

Some price differences show peaks of up to almost 80 percent. Researchers from the Consumers’ Association filled their shopping basket at fifteen supermarket chains with 125 different products from premium brands. A-brands are products with great brand awareness, such as Calvé peanut butter and Ariel detergent. Another shopping basket was filled with the same kind of house brand products.

‘On average, the basket of private labels turns out to be 45 percent cheaper. The price difference is greatest at supermarkets Deen, Deka, Dirk and Vomar. The outliers are mainly detergents and dishwasher tablets. Private label washing powder is on average 79 percent cheaper than Ariel’s. ‘

Other products hardly differ in price, such as long-life milk. Occasionally, the private label is even slightly more expensive than the A-brand. ‘We saw that with white chocolate, for example. The house brand was often more expensive than a Milka bar, ‘says spokesperson Joyce Donat. When asked, Albert Heijn recognizes the price difference between A brands and private labels, the retailer says in a response to the Consumers’ Association. Just like the Jumbo chain consulted, ‘market forces’ are mentioned as the reason for the price differences. The criticism of private brands among marketers is that they take advantage of a-brands without spending a lot on R&D themselves, gaining market share through large-scale marketing campaigns for a new category or making a lot of investments in brand awareness. “Parasitize private labels.” The quality of premium brands would also sometimes be better. Angry tongues claim that a-brands are sometimes even made in the same factory, such as the Unox and Hema house brand sausages. All these facets remain underexposed in the analysis. On the other hand, the development of various private label lines also shows a lot of innovation. Read on here.
(PvWK, sources: AD Cooking, 24Kitchen and Consmentenbond, photo: ‘ôc’ via Unsplash)

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