Supermarkets are leveraging the trust consumers have in their brands to launch a series of successful new ventures, according to market analysts Datamonitor.

Own label ranges such as Finest and Taste the Difference are integral to the Tesco and Sainsbury brands, and draw on a valuable consumer demographic to offer healthcare, beauty, home care, homeware, clothing and financial services, says the report.

Major multiple grocers now produce magazines, which focus on food and lifestyle, with recipes, giveaways which attract significant advertising revenue from major manufacturers, the report adds.

Euromonitor said that consumer magazines generate response rates of 78% compared to 10% from direct mail. In circulation terms Safeway ranks highest among multiple grocer consumer magazines, and is the fifth largest publication in the UK with a total monthly average net circulation of 1.76 million as of June 2002, according to the Direct Marketing Information Service.

Euromonitor reports that as the fmcg retail market in the UK consolidates with the £519m proposed purchase by Tesco of the T & S c-store chain and rumours of a Safeway takeover bid, the multiple grocer will become the dominant advertising medium for fmcg products.

Multiple grocers will increasingly dictate new product launches, concludes Euromonitor. And that manufacturers will find partnerships with the multiples crucial to the success of new products and exclusivity agreements between the two will become more common.