Frugality reigns as even cheaper private label lines debut

Private label brands that are offering the lowest price are now hitting shelves as consumers look for more frugal food options
11/19/2013

With consumers everywhere tightening their grocery spending, there are signs even deeper discounting options may be coming.

In Germany, the supermarket chain Real is looking to compete with the country's discounters on a budget line that is even cheaper than Aldi's.

Some experts are saying this cheaper range could trigger a new price war in Germany.

According to reports, these products will come in bright yellow packaging, no brand name only a product description.

It is said that Real will aim for those consumers looking for cheap product that aren't necessarily quality focused. One expert said that discounter outlet's products have improved so there's opportunity in the budget area.

For example, a brandless multi-vitamin juice is at Real just 79 cents per 1.5 litre pack and contains only 12% fruit product; at Aldi Süd, multi-vitamin 100% juice is 95 cents for a litre.

Meanwhile the world's biggest retailer, Walmart,  is testing what reports call an "extreme-value basic brand".
The line is called Price First and once again it's a line that is all about the lowest price, not quality products.

Walmart is offering the private label line of basic items such as condiments, sugar, spaghetti and paper towels to some 400 stores in the U.S. The blue packaging features a yellow arrow pointing down with the "Price First" name, and a generic product name, i.e. Crunchy Peanut Butter.

To read more go here and here.

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