1. Private Label Report Purpose of the Report
Publication date:
December 2018
Next publication:
November 2019
Purpose of the Report
To clarify the role of private label in Woolworths
Private Label Report

2. Private Label What is Private Label?
Private Brand
House Brand
Dealer-Own-Brand
Confined Label
Exclusive Brand
Private Label
What is Private Label?
There is often confusion around the difference between private label, private brand, house brand, dealer-own-brand, confined label, and exclusive brand. These terms are often used interchangeably and sometimes incorrectly. As such, please refer to the below definitions for clarity, the term private label encompasses both. For the purpose of this report, focus remains purely on private brand
NEED TO KNOW MORE
Private brand, House brand and Dealer Own brand:
A brand of product(s) that is exclusively manufactured by a contract or third-party manufacturer for a retailer, according to retailer specifications, and sold under a retailer’s brand name. Private brand is often tiered according to ‘good, better, best’ brand positioning, however these tiers are defined differently across retailers i.e. some might refer to premium / national brand equivalent / value or fit for purpose
Globally, certain retailers (i.e. Lidl) are moving towards vertical integration with their private brand products (i.e. owning the factories which private brands are manufactured in)
Confined Label, Exclusive Brand:
A brand of product(s) owned by a manufacturer or producer but exclusive rights are given to a retailer to be the sole distributor of the product to the market
Let’s take you on a journey down the shopping aisles of Woolworths, showcasing their most prominent private brand products
March 12, 2010
With the launch of a new private label range called Woolworths Essentials, consumers will be able to do what they’ve always wanted: get the superior quality they expect from Woolworths at everyday prices. Woolworths Essentials includes core basic products across all food departments as well as household cleaning products and toiletries, making it easier for customers to do their full weekly shopping at Woolworths. The first products, in distinctive packaging featuring Woolworths new branding, will be available in store from mid-March; by the end of May, Woolworths expects to have nearly 200 ‘Essentials’ lines in store. Woolworths Head of Foods Julian Novak explains that the launch of Woolworths Essentials is in line with the international trend for retailers to introduce private label products. “With tighter budgets, customers are looking for products that offer excellent quality as well as a great price,” he says. “South Africans have always relied on Woolworths for excellent quality – and with the launch of our Essentials range, they’ll be able to enjoy the superior quality they expect from Woolworths at prices that are comparable – and some even lower than – competitive products in the marketplace.” He continues, “Some of the range is existing products that have been repackaged; but more than half are new additions. Customers will find Essentials throughout the Foodmarket – in produce, dairy, protein, bakery, deli, snacks, cereals, household cleaning and toiletry products. The range will include some larger pack sizes, as well as convenient multi-packs. In produce, we’re offering packs of mixed-sizes which will offer savings over our other produce packs.” Novak adds, “I think it’s important to stress that while the Essentials range is competitively priced, we certainly haven’t lowered the quality or our commitment to our Good Food Journey principles. The same Good Food principles that apply to our other ranges also apply to Essentials. For example, there’s no added MSG, all the milk is rBST free, there are no added preservatives in the yoghurts, and no animal by-products in the chicken feed. Obviously the range won’t include the luxury touches that characterize our upper-tier ranges, but we believe that Essentials offer real value for money. With Woolworths Essentials, customers will be able to get all their everyday basics, from breakfast cereal and butter to washing powder and fabric softener, from a brand they really trust.” ENDS _____________________________________________________________________FAQs Why is Woolworths launching the Essentials range? The launch of Woolworths Essentials is in line with the growing international trend for retailers to introduce private label products. With tighter budgets, customers around the world are looking for products that offer excellent quality as well as a great price. They want value for money. Customers have always relied on Woolworths for excellent quality – and with the launch of our Essentials range, they will find the superior quality they expect from Woolworths at prices that are at least equal to – and are up to 10% lower than – competitive products in the marketplace. What is the difference between Essentials and Great Value? Essentials is a range of core basic products across all departments in the foodmarket. It includes things like washing powder, bread, peanut butter, breakfast cereal, etc. that offer the superior quality customers expect from Woolworths at highly competitive prices. ‘Great Value’, on the other hand, is a campaign based on a ‘basket’ of key household necessities that Adcheck monitors on a weekly basis against Pick & Pay, Spar and Checkers. Our ‘Great Value’ means that we ensure that our prices for these items are in line with the lowest competitor price that week. This means that some products in the Essentials range could also be part of the ‘Great Value’ campaign. How are the Essentials range products different to the rest of the WW-branded products? The Essentials range is our entry price level range. It includes core basic products across produce, dairy, protein, bakery, deli, snacks, cereals, household cleaning and toiletry products, etc. Some of the range is existing products that have been repackaged; others are new additions. Essentials will include some larger pack sizes, mixed-size produce packs, etc. What is the size of the range/number of lines in the range? We will be launching 191 lines between March and May 2010; this will grow over time. What are some examples of products in the range? It’s quite a wide range of products, from long-life milk to breakfast cereals, rice to stock powders, lemons and butternuts to breads, frozen fish to sandwich meat. How is the new range going to be rolled out/phased into store? The first products will be in-stores in early March. Additional lines will come on line in May, and we are planning to launch further Essentials lines later this year. Will the Good Food Journey principles still apply to the Essentials range? Absolutely. We won’t compromise on the principles that our customers trust us to uphold.payday loans direct lenderswhat is a payday loaninstant cash loansinstant approval payday loanscheck loans
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With the launch of a new private label range called Woolworths Essentials, consumers will be able to do what they’ve always wanted: get the superior quality they expect from Woolworths at everyday prices. Woolworths Essentials includes core basic products across all food departments as well as household cleaning products and toiletries, making it easier for customers to do their full weekly shopping at Woolworths.
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3. Private Label Role in Woolworths Strategy
The WSA aim is to deliver high-quality, ethically-sourced products, whilst endeavouring to position its private brand as the leading brand in food innovation and quality in South Africa
The focus on value is run in conjunction with WSA’s aim “to build and maintain credentials as the food leader, specialist and benchmark in South Africa”
Libstar plays a significant role in the production of WSA private brands i.e. Ambassador Foods, Amaro Foods and Rialto Foods
Strategy
Maintain a strong private label offering, with a balanced and complimentary portfolio of national brands that represent its shoppers’ most-wanted brands, encouraging a complete shop at Woolworths
Continue to drive the quality and level of private label innovation, which sets Woolworths apart from its competitors
Deliver great value, balancing price with quality, innovation, and sustainability attributes
All private label packaging to be reusable or recyclable by 2022
Financials and/or Contribution
Woolworths is unique in the South African food retail market, with approx. 90% of its product range being private label (SA Retail sector share 21.1% - Source: Nielsen)
“As a private label business, we have a reliance on specialist skill and deep appreciation for the strategic differentiation and value our people bring, as well as the key role they play in enabling our customer experience vision.” Zyda Rylands, Woolworths SA CEO
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4. What are the private brands in Woolworths?
Private Label
What are the private brands in Woolworths?
Private brand is often tiered according to ‘good, better, best’ brand positioning, defined differently across retailers
The tiered approach enables the retailer to control the price perception of its products
Private brands
Woolworths Value-for-Money
Woolworths Premium
Shopper Profile
LSM 7 – 10
LSM 8 – 10
Strategic Positioning
Better (Standard): Superior quality at everyday prices
Best (Premium): Premium quality range positioned at upper LSM shoppers
Brand Positioning
Designed to offer value
Allied strongly in the mind of the shopper with the retail brand itself
Price Positioning
Entry price level - compete with national brand prices (equal to and or up to 10% lower)
Price points across the Woolworths Food offering vary widely – e.g. some of the premium juices cost as much as some of the more inexpensive wines
SKUs
Core basic products across all food departments as well as household (cleaning products and personal care). Some in larger pack sizes, mixed-sized product packs or multi- packs
Spans personal care, household cleaning, groceries, food ‘to go’, ready-made meals and fresh
PRESS RELEASE WOOLWORTHS LAUNCHES NEW, LOWER PRICED PRIVATE LABEL RANGE IN FOODMARKETS 31 March 2010
With the launch of a new private label range called Woolworths Essentials, consumers will be able to do what they’ve always wanted: get the superior quality they expect from Woolworths at everyday prices.
Woolworths Essentials includes core basic products across all food departments as well as household cleaning products and toiletries, making it easier for customers to do their full weekly shopping at Woolworths.
The first products, in distinctive packaging featuring Woolworths new branding, will be available in store from mid-March; by the end of May, Woolworths expects to have nearly 200 ‘Essentials’ lines in store.
Woolworths Head of Foods Julian Novak explains that the launch of Woolworths Essentials is in line with the international trend for retailers to introduce private label products. “With tighter budgets, customers are looking for products that offer excellent quality as well as a great price,” he says. “South Africans have always relied on Woolworths for excellent quality – and with the launch of our Essentials range, they’ll be able to enjoy the superior quality they expect from Woolworths at prices that are comparable – and some even lower than – competitive products in the marketplace.” He continues, “Some of the range is existing products that have been repackaged; but more than half are new additions.
Customers will find Essentials throughout the Foodmarket – in produce, dairy, protein, bakery, deli, snacks, cereals, household cleaning and toiletry products. The range will include some larger pack sizes, as well as convenient multi-packs. In produce, we’re offering packs of mixed-sizes which will offer savings over our other produce packs.” Novak adds, “I think it’s important to stress that while the Essentials range is competitively priced, we certainly haven’t lowered the quality or our commitment to our Good Food Journey principles. The same Good Food principles that apply to our other ranges also apply to Essentials. For example, there’s no added MSG, all the milk is rBST free, there are no added preservatives in the yoghurts, and no animal by-products in the chicken feed.
Obviously the range won’t include the luxury touches that characterize our upper-tier ranges, but we believe that Essentials offer real value for money.
With Woolworths Essentials, customers will be able to get all their everyday basics, from breakfast cereal and butter to washing powder and fabric softener, from a brand they really trust.” ENDS 
FAQs Why is Woolworths launching the Essentials range?
The launch of Woolworths Essentials is in line with the growing international trend for retailers to introduce private label products.
With tighter budgets, customers around the world are looking for products that offer excellent quality as well as a great price. They want value for money.
Customers have always relied on Woolworths for excellent quality – and with the launch of our Essentials range, they will find the superior quality they expect from Woolworths at prices that are at least equal to – and are up to 10% lower than – competitive products in the marketplace.
What is the difference between Essentials and Great Value? Essentials is a range of core basic products across all departments in the foodmarket. It includes things like washing powder, bread, peanut butter, breakfast cereal, etc. that offer the superior quality customers expect from Woolworths at highly competitive prices.
‘Great Value’, on the other hand, is a campaign based on a ‘basket’ of key household necessities that Adcheck monitors on a weekly basis against Pick & Pay, Spar and Checkers. Our ‘Great Value’ means that we ensure that our prices for these items are in line with the lowest competitor price that week. This means that some products in the Essentials range could also be part of the ‘Great Value’ campaign.
How are the Essentials range products different to the rest of the WW-branded products? The Essentials range is our entry price level range. It includes core basic products across produce, dairy, protein, bakery, deli, snacks, cereals, household cleaning and toiletry products, etc. Some of the range is existing products that have been repackaged; others are new additions. Essentials will include some larger pack sizes, mixed-size produce packs, etc.
What is the size of the range/number of lines in the range? We will be launching 191 lines between March and May 2010; this will grow over time.
What are some examples of products in the range? It’s quite a wide range of products, from long-life milk to breakfast cereals, rice to stock powders, lemons and butternuts to breads, frozen fish to sandwich meat.
How is the new range going to be rolled out/phased into store? The first products will be in-stores in early March. Additional lines will come on line in May, and we are planning to launch further Essentials lines later this year.
Will the Good Food Journey principles still apply to the Essentials range? Absolutely. We won’t compromise on the principles that our customers trust us to
Profile: A leading South African retailer offering a range of primarily private label products
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5. Brand positioning | Better (Standard) and Best (Premium)
Private Label
Brand positioning | Better (Standard) and Best (Premium)
The WSA aim is to deliver high-quality, ethically-sourced products, whilst endeavouring to position its private brand as the leading brand in food innovation and quality in South Africa
Woolworths Value-for-Money (Better) – Essentials, W-Lab, Embody, Earth Friendly, Kids range
Woolworths Premium (Best) – Free range, organic, ready-to-cook, good-to-go, carb clever etc.
Woolworths
Woolworths Essentials
Woolworths W-Lab (Household)
Woolworths EMBody (Personal Care)
Woolworths Earth Friendly (Personal Care)
Woolworths Kids (Personal Care)
Source:
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6. Price Positioning | Value-for money vs. Market Leader/National Brand
Private Label
Price Positioning | Value-for money vs. Market Leader/National Brand
Woolworths offer a tiered pricing strategy, with an entry level value-for-money range which competes at a discount to national brands, and a premium range (Food), where price points across the food offering vary widely
Better (Standard)
Market leader
R114.99
Note: pricing as at
Source:
R107.88
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7. What media platforms are used to communicate Woolworths private brand
Private Label
What media platforms are used to communicate Woolworths private brand
Print | Broadsheet & Magazine
Website TV
The Daily Difference broadsheet showcases WSA private brand shopping list essentials: ‘More savings, more choice, more Wrewards every day’ – improving price perception
Comprehensive breakdown of the WSA private brand, across the Food category, covering ‘new in’, daily difference, promotions and ‘our specialities’ inter alia
Private brand products feature on WSA TV adverts
Social Media
Direct Mail | Online Magazine
WSA private brand is showcased extensively across various platforms
A monthly e-newsletter and e-zine, with updates on the latest news and great specials showcasing WSA private brand
Showcasing recipes utilizing house brands as part of ingredients
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8. What’s going on in-store?
Private Label
What’s going on in-store?
Extensive WSA private brand offerings across value and premium products - grocery, personal care and household cleaning
The value-for-money WSA private brand is merchandised next to the equivalent national brand on shelf
WSA private brand well represented on gondola ends and POS
Premium range
Merchandised next to the national brand
Gondola End promotion
POS elements
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9. Maryla Masojada | Lead Analyst Adrienne Osberg | Retail Analyst