Metro Cash & Carry Launches New Strategy On Proprietary Brands

A.S. (Tradus de Andrei Năstase)
Ziarul BURSA #English Section / 25 noiembrie 2009

Metro Cash & Carry yesterday unveiled its new strategy on proprietary brands, which concerns a set of six distinct brands that are exclusively dedicated to the needs of its customers. The new portfolio of proprietary brands is being gradually launched on the market in all the 30 countries where Metro Cash & Carry operates.

The new Metro Cash & Carry strategy on proprietary brands consists of a reduced portfolio of six exclusive brands that ensures a clear structure and a better understanding among target groups.

The proprietary brands have been developed in close cooperation with the customers, who expressed and refined their specific needs. Additionally, Metro Cash & Carry performs market analyses and comprehensive laboratory tests, both internally and externally.

The retail price of the proprietary brands will be 10-20 per cent lower, as an average, than similar products of different brands.

Metro Cash & Carry is planning to sell the ratio between proprietary brands sales and overall sales from the current 10 per cent to 20 per cent in 2012. Based on the figures reported for 2008, the achievement of this target would equal sales of approximately 6 billion EUR. The diverse product portfolio is currently implemented in all the 30 countries where the company operates.

Upon defining the strategy on the six proprietary brands, Metro Cash & Carry considered the following test conclusions:

- ARO sells for the lowest price - below the competition"s benchmark - and comprises quality edible and non-edible products.

- Fine Food stands for premium products targeting independent food retailers and food-related service providers.

- HoReCa Select provides quality edible and non-edible products for professional kitchen use.

- H-Line is an assortment of non-edible products that are targeted exclusively on hotels and restaurants. The professional appearance and the performance of H-Line products offers a real alternative to franchising.

- Rioba is proprietary portfolio focused on coffee specialties and cocktails for bars, coffee shops, hotels and office spaces.

- Sigma is an exclusive solution for office suppliers required for professional needs. Sigma addresses all customer groups and offers assistance for business organisation.

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