Tesco is introducing seven new fresh produce brands that replace a raft of its Everyday Value fresh lines.
In a move clearly aimed at taking on Aldi and Lidl, Tesco has unveiled more than 70 new own-label products, under the banner of brands such as Redmere Farms for vegetables and Boswell Farms for beef. All seven use the word Farms in their name and are priced to either match or undercut competitors.
CEO Dave Lewis is seeking to make the shopping trip simpler but also to ramp up the perception of the quality and value for money of Tesco’s entry-level range compared with that of Aldi and Lidl.
The new lines will replace Everyday Value products including sausages, carrots, peppers and a range of fruit items.
The new brands are
Redmere Farms - vegetables
Suntrail Farms - imported fruit
Rosedene Farms - berries, apples and pears
Nightingale Farms - salad
Woodside Farms - pork
Willow Farms - chicken
Boswell Farms - beef
Tesco said it had conducted a long-running review of the quality of its fresh offering, although it said it had no immediate plans to scrap the rest of its Everyday Value line-up.
The move comes four years after a major relaunch of its £1bn value range under Philip Clarke.
“We have conducted a big piece of work on quality and where the quality of the new brand is as good or better than the Everyday Value product we have replaced them,” said a Tesco spokeswoman, who said the move was aimed at creating an extended and permanent version of the Festive Five offer at Christmas, which helped it grow like-for-like sales at Christmas by 1.3%.
It added the ranges would make the shopping trip simpler for customers looking for a value proposition and the convenience of having all the products in one place.
The price range for fruit and veg in the line-up is between 35p for lettuce to £1.69 for a packet of raspberries, with fresh meat ranging from 60p for a packet of sausages to gammon joints at £4.49.
“By creating seven distinct, exclusive brands across fresh food we are meeting the need for a new level of quality at great prices,” said the spokeswoman.
HSBC analyst David Mccarthy said the move was “an important step” in Tesco’s fightback.
“Initially 76 lines will be introduced and these will have a step up in quality vs Everyday Value, which will be replaced where there is duplication,” he said.
“Not all Everyday Value lines will be removed but we expect more Farm brands to be launched over time. We regard Farm brands as an important (and early) step in Tesco’s repositioning, which has been quietly building.”