Tesco and Sainsbury's Expand Private Label Beverages

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August 3, 2010

As competing retailers tighten their product assortments and new product development, Tesco and Sainsbury are successfully expanding their private label beverage lines.

Tesco and Sainsbury’s have grown their store brands businesses and portfolios during the recession, with a recent focus on beverage product innovation.

Over the past year, Tesco has launched 2,600 new and/or improved private label products, 500 of which were drinks and food products under the ‘Discount Brands at Tesco’ initiative, according to a Just-drinks.com report.

Other Tesco brands include Tesco Value and Tesco Finest, the chain’s higher-quality premium line, following the “good-better-best” tier system.

Sainsbury's, which also follows a tier system for its private label, expanded its entry-level basics line with 140 new products last year, brining the total to 700 SKUs. New products included JS [John Sainsbury] basics water and JS basics apple juice drink packs.

Sainsbury also expanded its store brand wine assortment, offering 24 new labels retailing for approximately $7. “Sainsbury’s wines are produced by some of the best wineries in the world from Chapoutier in France to St. Hallets in Australia,” Elizabeth Treversh of Sainsbury’s told Just-drinks. Sainsbury. “Our wine sales are growing faster than the market with Sainsbury’s own brand having a key important role in driving this.”

Meanwhile, Tesco is also focusing on green beverage packaging and has placed its carbon footprint label on 120 store brand products since 2008, including orange juice most recently.
The label display the quantity of CO2 released into the air by the manufacture and distribution of its products.

In the U.K. Sainsbury's operates 828 stores and Tesco 2,482.

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