In the most recent edition of ESM, we spoke to retailers across Europe about their private label strategies, including chatting to retailer Pingo Doce about how Portuguese consumers are being more adventurous with their private label purchasing.
This article first appeared in ESM Issue 3 2020.
Pingo Doce, part of Portugal’s Jerónimo Martins group, celebrates its 40th anniversary this year, with its private-label offering having been around for close to three decades of that.
In recent years, the retailer has incorporated local sourcing, sustainability credentials, superfoods and added-value elements to its own-brand ranges, as well as ensuring optimum quality – the production process for all private-label products adheres to strict guidelines (ISO 9001:2000 - SGS).
ESM caught up with Rita Manso, Pingo Doce’s private-brand director.
ESM: What trends are influencing Portuguese consumers' purchasing habits?
Rita Manso: Consumers are driven by healthier and fresh choices, increasing the demand for products that deliver the health benefits adapted to their dietary needs and lifestyles. Convenient solutions that help consumers through their hectic lives are also a driver for private-brand growth.
Also, with more awareness of the impact of their food choices on the environment, consumers are reducing their animal protein intake and increasing their consumption of plant-based products. This means a huge step forward for private brands in terms of innovation.
The current COVID-19 crisis is another game-changer, and, as in previous crises, we expect consumers to be even sharper in terms of seeking out products with functional benefits. We are already seeing an increase in the purchase of ingredients like superfoods, probiotics, and micronutrients like Vitamins A and C and zinc, as well as spices like ginger and turmeric.
How have you sought to bolster your private label positioning?
With almost 30 years of presence in the Portuguese market, Pingo Doce’s private brand is widely developed in every category. Pingo Doce’s private brand was launched with a value proposition based on quality at competitive prices, democratising the access to categories that typically were underdeveloped when it came to private brands.
For example, the wine category, which is highly driven by a national brand offering, is a good example of how private label can be relevant to consumers, even in a very challenging category.
Pingo Doce’s wines were launched in the nineties, with the aim of making the category accessible to a wider number of consumers. More than two decades and several awards later, Pingo Doce’s private-brand wines have raised the standards again and created a new range in partnership with several winemakers, from every Portuguese wine region.
To guarantee the best-quality balanced wines, we have a very experienced wine curator, while the category has also undergone a rebranding process that illustrates our passion and our willingness to support Portuguese wine culture.
Do you think the 'good-better-best' architecture is still valid when it comes to private label?
This is the basis for every private-brand architecture segmentation, but, nowadays, it’s not enough. It goes far beyond good-better-best. It’s about putting the consumer at the centre of the decision-making and evolving the brand architecture accordingly.
Our private brand caters for different dietary needs and intolerances, such as gluten- and lactose-free products. It’s a brand architecture that also considers different life stages, from Generation Z to the baby boomer generation, as well as consumers who are looking to shift to a flexitarian diet, embrace organic products, or discover fine foods from around the world.
All these segments and products have a different purpose and reach different targets, and each one communicates differently with the consumer. That’s why we have been upgrading and widening our brand architecture, reinforcing the strength of Pingo Doce as a leader in the Portuguese market.
What does the future hold for private label at Pingo Doce?
Together with our business partners, we will continue to invest in launching private-brand products, keeping up with the ever-changing needs of consumers and modern lifestyles, while offering products that help to positively encourage healthier eating habits.
The areas of quality and traceability will likely see further progress, to some degree. Jerónimo Martins is investing in its own DNA lab to guarantee food authenticity and product integrity. This facility, based in Portugal, should be unveiled by the end of this year.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
