Metro Cash & Carry Reveals New Private Label Strategy

December 9, 2009

Metro store front Metro Cash & Carry hopes to double its international own-brand sales share from the current 10 to around 20 percent by 2012 with its new private label strategy and streamlined portfolio of six exclusive labels.

The new strategy includes a tighter assortment, a sharpened customer focus and even more competitive pricing, according to a company statement. The new private label brands are gradually rolling out in all 655 self-service wholesale stores in the 29 countries where Metro Cash & Carry does business.

“Combined with a very competitive pricing, our own brand assortment will significantly help our professional customers to boost their own business,” said Frans W. H. Muller, CEO of Metro Cash & Carry International during an international press conference held in Düsseldorf where the company is based. “With our new own-brand strategy we are focusing even more on the special needs of our core customers, such as hotels and restaurants, traders and offices. Our knowledge and understanding of their business has helped to develop a high quality, user-friendly and tailor-made product range.”

The new own brand portfolio includes:

• Aro sold on a price entry level, below the benchmark competition and comprises 700 reliable food and non-food products.

• Fine Food, which “stands for high-value products, addressing independent food traders as well as service stations with 700 items..

• Horeca Select, which offers 1,500 food and non-food products for professional kitchen use.

• H-Line, an assortment of 350 non-food and “near food” products that offer solutions for the hotel and [restaurant] sector. “The professional look and performance of H-Line offers a realistic alternative to franchising,” the company said.

• Rioba, a line of 150 coffee and cocktails making supplies for bars, cafés, hotels, companies and offices.

• Sigma, a line of 600 office supplies that serves all customer groups.

On average the selling price will be 10 to 20 percent less than similar branded products, while offering a quality that is comparable to the best standard on the market, according to a company statement.

“Altogether, this new approach allows us to offer our professional customers a real added value. This is especially important in the course of an economic downturn,” said Thomas Rudelt, head of corporate own-brand management.

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Keywords: business, companies, food and beverage, industry, markets, metro, metro cash and carry, private label strategy, private label trends

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