MILAN, May 13 (Class Editori) — Revolution at Coop. The Group has decided to bet big on the private label and within two years wants to bring about 5,000 new private label products to the shelf, which will renew about 50% of the offer. The goal is to double Coop's private label sales in four years to 6 billion euros.
"This is a project we have been preparing for some time, but it is also something that has never been attempted in Italy or even in Europe," Marco Pedroni, President of Coop Italia and ANCC-COOP, explained. "For us, this is a revolution, but it is also a bulwark for the defence of purchasing power, with Coop products allowing families to save 25-30% compared to the industrial brands, guaranteeing quality and new performance. Expanding Coop's shelf presence means giving people more freedom of choice both in terms of product types and price positioning".
So far, the share of Coop-branded products is around 30%, with sales of about 3 billion euros. Moreover, 40% of the food portion comes from fully traceable supply chains. Overall, Coop has a turnover of about 14.4 billion euros, the result of the work of 79 consumer cooperatives, including 7 large ones. The extension of the branded product will lead to an increase in the network of supplier companies.
The change will begin already in the next few days, when the first branded products will hit the shelves, starting with breakfast products followed by alcoholic and non-alcoholic beverages, pasta, and first courses. By the end of next year, there will be about 5,000 products, involving in some cases reformulations and packaging changes. A real revolution for Coop, which will almost completely renew the product assortment in its network of over 1,100 stores in 18 Italian regions.
"The new offer originates in the assessment of what is happening in the Italian large-scale retail world, which is undergoing a major transformation," Maura Latini, CEO of Coop Italia, explained. "Discount stores keep growing, reaching almost 20% of shares, promotional purchases have been increasing again, and in the last 15 years brands have given up half their sales share. The new Coop will emerge from this ongoing process; we have been, in fact, redesigning the main contents of our stores' offerings so that they can effectively meet our partners and consumers’ demands".
Expanding the branded products will lead to an increase in the network of supplier companies: the over 500 "historical" suppliers will be joined by another 250, a mainly Italian production fabric, with 80% medium- and small-sized companies. Coop's investment in communication on this branded products project will amount to about 10 million euros for 2022 alone.
(Source:Class Editori)
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