Walmart's Asda Targets Global Store Brands Launch

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June 1, 2010

Asda is seeking to develop international store brands to be sold in Walmart stores around the world.

The U.K. grocer is looking to develop five or six international store brands that would be sold globally through Walmart owned chains, global chief marketing officer Rick Bendel told Marketing Week.

He added that store brands in the U.K. are an integral part of marketing while in other countries they are viewed “as downmarket imitations of branded goods.” Store brands are “more sophisticated in the U.K. as penetration is around 50 percent, compared to around 15 percent in other countries.”

The U.K. grocer also is redesigning its Asda store brand line to bolster poor quality perceptions, according to the report. Initial categories to be overhauled include beers, spirits, beverages, cereals, snacks and biscuits, followed in November by confectionary, canned foods, soft drinks, deserts and baking products, vegetables, meat and frozen food.

The grocer also plans to redesign its “free from” line in December. Last month, the company announced plans to expand its free-from store brand line with the addition of 78 SKUs to better position it against Sainsbury, according to The Grocer (U.K.).

The addition will give Asda 208 SKUs in the specialty line that is focused on scratch-cooking products and includes gluten-free items and other products free from certain allergens.

"Our existing range was too focused on cakes and biscuits,” said Helen Devine, Asda customer planner for free-from products. “Allergy sufferers would prefer to do without snacks than do without the more substantial foods we are introducing in the new products."

In March, Sainsbury's expanded its free-from offering by 90 SKUs to a total of 229 products. That same month, Tesco expanded its line of frozen Dietary Specials brand.

Read These Related Articles:

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• PLMA Announces ‘Salute to Excellence Awards'
• Meijer Launches Specialty Store Brand Foods
• Walmart and Carrefour Expand Store Brand Lines Internationally

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