There's much to learn from impressive new own-label ranges being developed in Europe and the US, says David Wilson
I have read many a time, in this very column, the words UK and innovation in the same sentence. And it's not just authors of this column that have been laying it on thick. Commentators all over the place have been praising our food and drink industry for years for being in the vanguard of future development.
Who's to say they're wrong? We must have been doing something right over the past decade to build an industry that turns over £73bn. And the latest export figures show that our international business is booming.
But is our food popular overseas because we're offering something a bit different, something they can't get in home markets, or is it more that our products are of inherently better quality and therefore just taste that bit better?
Taking a look at what's on offer in other food and drink retail markets across the globe I would say we are very much one of the top territories when it comes to innovation. But we certainly shouldn't rest on our laurels.
Working for food and drink consultancy Green Seed, with its network of international offices, gives me insights into what other retail markets are doing both with products, brands and retail format. There are many new and different initiatives, which, while they may not be technically suitable for the UK, highlight a progressive attitude that belies size and circumstances.
The Netherlands is one example. It has been one of the first to actually take steps to address ethical issues in the retail market. Albert Heijn has developed a new umbrella own-label brand, Puur & Eerlijk (Pure & Honest), covering five categories including organic, fair trade, sustainable-yield, free-range and ecologically friendly.
Germany has taken this concept to another level, with the development of a dedicated organic supermarket chain. Where in the UK, we have a few Planet Organics around London, Germany has gone full steam ahead with 55 Alnatura stores across the country.
In the US, it's private label that is driving grocery sales, primarily as a consequence of the recession. New York Magazine recently declared brands dead as consumers continue to reject the big names in favour of private brands from retailers they trust.
One retailer that has jumped quickly on this bandwagon is New York-based drug store chain Duane Read, which has launched its own brand, Dr Delish, which comprises 25 products including trail mixes, vitamin-enhanced teas, 100% juices and multigrain snacks.
Meanwhile, in France, increased interest in own-label has now extended to more niche products. All retailers are now launching their own own-label free-from ranges, particularly in gluten-free. Auchan led the way with a launch in October, with Carrefour and Casino set to follow suit in the new year.
Identifying trends and creating products to match is one thing, but being ahead of the game in innovation is quite another. There are huge opportunities for UK food and drink companies to develop business abroad if they can come up with suitably creative products to match. However, in this über-competitive market, it will be more essential than ever before to demonstrate that all-important point of difference.
David Wilson is chairman of The Green Seed Group.
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I have read many a time, in this very column, the words UK and innovation in the same sentence. And it's not just authors of this column that have been laying it on thick. Commentators all over the place have been praising our food and drink industry for years for being in the vanguard of future development.
Who's to say they're wrong? We must have been doing something right over the past decade to build an industry that turns over £73bn. And the latest export figures show that our international business is booming.
But is our food popular overseas because we're offering something a bit different, something they can't get in home markets, or is it more that our products are of inherently better quality and therefore just taste that bit better?
Taking a look at what's on offer in other food and drink retail markets across the globe I would say we are very much one of the top territories when it comes to innovation. But we certainly shouldn't rest on our laurels.
Working for food and drink consultancy Green Seed, with its network of international offices, gives me insights into what other retail markets are doing both with products, brands and retail format. There are many new and different initiatives, which, while they may not be technically suitable for the UK, highlight a progressive attitude that belies size and circumstances.
The Netherlands is one example. It has been one of the first to actually take steps to address ethical issues in the retail market. Albert Heijn has developed a new umbrella own-label brand, Puur & Eerlijk (Pure & Honest), covering five categories including organic, fair trade, sustainable-yield, free-range and ecologically friendly.
Germany has taken this concept to another level, with the development of a dedicated organic supermarket chain. Where in the UK, we have a few Planet Organics around London, Germany has gone full steam ahead with 55 Alnatura stores across the country.
In the US, it's private label that is driving grocery sales, primarily as a consequence of the recession. New York Magazine recently declared brands dead as consumers continue to reject the big names in favour of private brands from retailers they trust.
One retailer that has jumped quickly on this bandwagon is New York-based drug store chain Duane Read, which has launched its own brand, Dr Delish, which comprises 25 products including trail mixes, vitamin-enhanced teas, 100% juices and multigrain snacks.
Meanwhile, in France, increased interest in own-label has now extended to more niche products. All retailers are now launching their own own-label free-from ranges, particularly in gluten-free. Auchan led the way with a launch in October, with Carrefour and Casino set to follow suit in the new year.
Identifying trends and creating products to match is one thing, but being ahead of the game in innovation is quite another. There are huge opportunities for UK food and drink companies to develop business abroad if they can come up with suitably creative products to match. However, in this über-competitive market, it will be more essential than ever before to demonstrate that all-important point of difference.
David Wilson is chairman of The Green Seed Group.
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