Tesco has begun selling one of its new venture brands - Chokablok ice cream - outside its own stores for the first time, marking an important turning point for supermarket private label. Two of Chokablok’s Magnum-style choc ices on sticks are being sold at 11 outlets on leisure sites, including London and Whipsnade Zoos, and Knowsley Safari Park.
When Tesco began selling venture brands [own label products that do not carry its name] last year, it stated the ultimate goal being to develop products that would successful enough to be sold in non-competing retailers. A spokesperson for R&R Ice Cream, the company that manufactures Tesco’s Chokablok range, said: "We have identified new opportunities in the impulse sector which do not compete with Tesco and will bring further valuable exposure for the brand."
Industry observers said the distribution of Chokablok beyond Tesco could mark an important turning point for private label and venture brands. “When you consider the power the multiples have, there is no reason own brands shouldn’t flourish beyond their current confines,” said Tom Ellis, director of insight and innovation at Brand Genetics. “It must worry premium brands that aren’t market leaders, as Tesco and R&R together have huge clout.”
Tesco has been developing a number of venture brands and last week launched a butters and spreads range called Yum, produced by Arla. It also launched a new savoury snacks range called ‘Llama’s Baked Bites’ earlier this year with Tesco hoping to “shake up the savoury snack aisle”. Other venture brands include Halo, a range of feminine hygiene products, an eco-household cleaning range called Naturally Powered, as well as the Lathams and Nutricat petcare ranges.
NamNews - Wednesday 25th July 2012