How UK shoppers fell in love with own-label groceries

The supermarkets like Tesco's have spotted that we're buying more products sold under the supermarket's own name, and fewer made by outside brands. Supermarkets are offering everything from a cheaper version of your favourite breakfast cereal to after-dinner chocolates, with the emphasis on the in-house branding, such as Taste the Difference, Luxury, Finest or The Best, rather than the shop's name. John Lewis, too, though not a supermarket, also says it plans to increase its own label range to make up half of all the products it sells, following a recent downturn in business. "Own brand margins are better than branded for retailers because you have vertical control," says Mr O'Brien. While supermarkets are eager to make the most of the opportunity to manage marketing, prices, and the entire supply chain, wherever they can, they won't be in a position to ditch brands altogether, suggests David Sables, chief executive of Sentinel, a firm that advises suppliers on negotiations with supermarkets.

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