• Latest
  • Trending
  • All
  • News
  • Lifestyle
House brands are gaining traction.

Mzansi seems to be loving ‘house brands’ more

13th September 2021
Agriculture, land reform and rural development minister Thoko Didiza has placed a 21-day ban on the movement of cattle across South Africa due to foot-and-mouth disease (FMD) outbreaks. Photo: Supplied/Food For Mzansi

SA battles 116 FMD outbreaks amid 21-day cattle ban

16th August 2022
Illegal sand mining poses a threat to many ecosystems, human safety and agricultural practises. Photo: Pixabay

Will the world run out of sand?

16th August 2022
ADVERTISEMENT
Organic certification is a long, but rewarding process. Photo: Supplied/Food for Mzansi

How to get the ball rolling on organic certification

16th August 2022
This #SoilSista’s poultry farm puts quality first

This #SoilSista’s poultry farm puts quality first

16th August 2022
Prof. Theo Venter gives his take on the ruling party’s recent policy conference and what it means going forward. Photo: Supplied/Food For Mzansi

Fixing agri challenges: ‘ANC no longer has a choice’

16th August 2022
The Minister of Agriculture, Land Reform and Rural Development, Ms. Thoko Didiza, MP has taken the decision to suspend all movement of cattle in the whole country. The Ministers decision is aimed at halting the continued spread of Foot and Mouth Disease in the country. It also means that cattle may not be moved from one property to another for any reason for a period of 21 days reviewable weekly. Photo: Supplied/Food For Mzansi

FMD battle: Govt prohibits movement of all cattle

16th August 2022
Justin Platt, founder and CEO of Zylem and RegenZ argues that instead of basing management decisions on a purely rational and cognitive approach, farmers need to harness (and trust) their unique intuition. Photo: Supply/AdobeStock

Farmers, trust your intuition and go with your gut

16th August 2022
Leanne Gammage and Jackson Andrew, co-founders of Masterstock Cape Wild Food. Masterstock Cape Wild Food is a speciality salt brand focused on regenerative agriculture. Photo: Supplied/Food For Mzansi

Agripreneur 101: Regeneration at the heart of this salt company

16th August 2022

R350 grant puts sisters on agri path to success

15th August 2022
The uMngeni Municipality in KwaZulu-Natal is supporting local farmers through a new agricultural unit that has been established in the municipality. Photo: Supplied/Food For Mzansi

Farmer support: KZN municipality leads the way

15th August 2022
Farmers in the south-western parts of the country can expect a slightly drier than usual spring. Photo: Supplied/Food For Mzansi

ICYMI: Below-normal winter rainfall to continue

15th August 2022
This week's Agri calendar features a wine and food event, an online discussion on biofilms the dairy industry and another on cutting fertiliser costs. There's also a livestock auction to look out for and an online event about soil. Include your event to the calendar by emailing info@foodformzansi.com. Photo: Supplied/Food For Mzansi

This week’s agriculture events: 15 to 18 August 2022

15th August 2022
  • Home
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
11 GLOBAL MEDIA AWARDS
Wednesday, August 17, 2022
Food For Mzansi
  • Home
  • News
  • Changemakers
    • All
    • AgriCareers
    • Entrepreneurs
    • Farmers
    • Groundbreakers
    • Innovators
    • Inspiration
    • It Takes a Village
    • Mentors
    • Movers and Shakers
    • Partnerships
    Leanne Gammage and Jackson Andrew, co-founders of Masterstock Cape Wild Food. Masterstock Cape Wild Food is a speciality salt brand focused on regenerative agriculture. Photo: Supplied/Food For Mzansi

    Agripreneur 101: Regeneration at the heart of this salt company

    R350 grant puts sisters on agri path to success

    The uMngeni Municipality in KwaZulu-Natal is supporting local farmers through a new agricultural unit that has been established in the municipality. Photo: Supplied/Food For Mzansi

    Farmer support: KZN municipality leads the way

    This drone is collecting data which farmers can then access on the yield management platform. Photo: Supplied/Aerobotics

    How the Internet of Things is transforming agri

    His life took a turn for the worst when he ended up in jail for dealing in drugs, but Thembinkosi Matika turned his life around and now helps others through his Legacy Farming Project. Photo: Supplied/Food For Mzansi

    Drug dealer turned farmer ploughs back

    Christo Van der Rheede is the executive director of Agri SA. Photo: Supplied/Food For Mzansi

    Former music teacher leads agri’s greatest symphony

    Agripreneur 101: Creating a beauty brand

    Agripreneur 101: Creating a beauty brand

    Claire and Martin Joubert have sacrificed and struggled to become top breeders of Ankole cattle in South Africa. But giving up was never an option, because they wanted to offer only the very best Ankole genetics in the country. Photo: Supplied/Food For Mzansi

    Farming couple lives and breathes Ankole cattle

    Tackling climate change, one tree at a time

  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi

Mzansi seems to be loving ‘house brands’ more

by Lucinda Dordley
13th September 2021
in News
Reading Time: 4 mins read
A A
House brands are gaining traction.

House brands are continuing to gain market share in South Africa. Photo: Supplied/Food For Mzansi

Almost a quarter of South Africans’ grocery baskets now consists of “house brands”.

According to NielsenIQ data, Mzansi’s private label (PL) market has continued to grow and now accounts for 24.3% of total basket value sales in South Africa, or R71 billion in annual sales.

This growth cemented the private label growth path from 2019, when its share of sales was 22.8%. It rose to 23% by May 2020 and 24.6% a year later.

These insights stem from a new NielsenIQ client report on The State of Private Label in South Africa, which provides a comprehensive view of the evolution of the private label in the local market. The report is based on trended data and insights gathered over the last ten years.

NielsenIQ South Africa managing director Ged Nooy says, “There’s no doubt that a new generation of private label ‘house’ brands have provided the impetus and created momentum in the local retail sector during one of its toughest times and most difficult trading periods.” 

Nooy stresses that the booster effect of South Africa’s initial lockdowns in 2020 should not be underestimated as a reason for this uptick. “For example, in March 2020 just before South Africa’s first and highest Level 5 lockdown, stockpiling saw private label growth soaring to a peak of 27.2% and this strong double-digit growth was maintained throughout the second quarter of 2020. Interestingly, during this same time frame, named brands saw a decline in sales,” he reports. 

Reasons for house brands’ success

The big question is: Why has PL succeeded against all the odds? A key realisation is that these products are no longer the no-name brands of old, which were often perceived as “cheap” and of inferior quality.

Nooy explains, “What we have seen is a diversification of PL products, which now range from entry-level offerings presenting high value for money, to the mid-range solid offerings, to a new generation of premium products which represent both quality and value. This stems from more investment in the sector which has created the depth and the momentum that we see today.”

In terms of more functional reasons for PL’s growth, particularly during lockdowns, The State of Private Label in South Africa report found that continuity of supply was a key factor. 

This was driven by consumers’ need for quick “in and out” shopping experiences, primarily due to health and safety concerns. This concern also led to a sharp decline in the number of shopping trips, which meant if products were out of stock, a shopper would only return to a store in a week or a month.

Purchase opportunities were therefore far more limited and product availability was vital. Big stock-ups at each trip also saw an increase in the purchase of larger pack sizes, once again to reduce the number of store visits. Within this context, it was manufacturers’ and retailers’ ability to meet this need, via an increase in the distribution and assortment of private label products, which ultimately led to the increase in value sales. 

Product highlights

Eight of the ten product supergroups have benefited from this growth. Among the many movers and shakers, frozen foods has seen the biggest incremental gain of R2 billion in sales over the last 12 months. This was mainly driven by consumers purchasing bigger pack sizes and more products. Unsurprisingly, the fastest growing was healthcare with sales up by 34.8% in the last year.

Personal care private label products have seen a consistent gain in value share over the past three years. This is understandable given the massive shift to hygiene and health via products like hand sanitiser and echoed by 69% of consumers who claim to have purchased more private label personal care products compared to a year ago. 

“Private label will continue to be a very good space to play in for manufacturers and retailers alike and despite the onerous retail environment, we have identified some ‘sweet spots’ that are still up for grabs for those who have the data and insights to analyse the market and move faster than anyone else,” Nooy concludes.

ALSO READ: Retailers vow to increase investments in local manufacturers

Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.

Tags: House brandsNeilsenIQThe State of Private Label in South Africa
Previous Post

This week’s agriculture events: 13 – 19 September

Next Post

Alcohol sales: Weekend ban still a concern

Lucinda Dordley

Lucinda Dordley

Words and people: these have been Lucinda's only two passions from a very young age. As soon as she found out that journalism was the perfect marriage of the two, she knew it was what she had to be. She has worked in many spheres within journalism, including crime and human interest news, lifestyle, and tech for publications such as The Cape Argus, Fairlady Magazine, Cape Town Etc, Getaway Magazine and Popular Mechanics. In her spare time, she can be found with a book in hand or chatting to someone to find out what their story is.

Related Posts

No Content Available
Next Post
Alcohol sales restrictions for both off-site and on-site consumption, have been relaxed. Photo: Supplied/Unsplash

Alcohol sales: Weekend ban still a concern

This #SoilSista’s poultry farm puts quality first
Advertorial

This #SoilSista’s poultry farm puts quality first

by Nicole Ludolph
16th August 2022
0

Moving from chemical engineering to chicken farming is a drastic change, but for Dimakatso Makgoe-Mabheju, it was precisely what she...

Read more
Prof. Theo Venter gives his take on the ruling party’s recent policy conference and what it means going forward. Photo: Supplied/Food For Mzansi

Fixing agri challenges: ‘ANC no longer has a choice’

16th August 2022
The Minister of Agriculture, Land Reform and Rural Development, Ms. Thoko Didiza, MP has taken the decision to suspend all movement of cattle in the whole country. The Ministers decision is aimed at halting the continued spread of Foot and Mouth Disease in the country. It also means that cattle may not be moved from one property to another for any reason for a period of 21 days reviewable weekly. Photo: Supplied/Food For Mzansi

FMD battle: Govt prohibits movement of all cattle

16th August 2022
Justin Platt, founder and CEO of Zylem and RegenZ argues that instead of basing management decisions on a purely rational and cognitive approach, farmers need to harness (and trust) their unique intuition. Photo: Supply/AdobeStock

Farmers, trust your intuition and go with your gut

16th August 2022
Leanne Gammage and Jackson Andrew, co-founders of Masterstock Cape Wild Food. Masterstock Cape Wild Food is a speciality salt brand focused on regenerative agriculture. Photo: Supplied/Food For Mzansi

Agripreneur 101: Regeneration at the heart of this salt company

16th August 2022

How to get the ball rolling on organic certification

This #SoilSista’s poultry farm puts quality first

SA battles 116 FMD outbreaks amid 21-day cattle ban

Bumper harvest for Mzansi’s olive growers

This week’s agriculture events: 15 to 18 August 2022

ICYMI: Below-normal winter rainfall to continue

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 12 global awards in the first three years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

SA battles 116 FMD outbreaks amid 21-day cattle ban

Will the world run out of sand?

How to get the ball rolling on organic certification

This #SoilSista’s poultry farm puts quality first

Fixing agri challenges: ‘ANC no longer has a choice’

FMD battle: Govt prohibits movement of all cattle

  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

No Result
View All Result
  • Home
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2021 Food for Mzansi

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.