REWE GROUP / Private label brands

February 2011

Mr Gens, the REWE Group operates all over Europe. In which European countries do you see the greatest potential for brand growth and where has saturation already been reached? What are the reasons for this?

In my opinion, growth of brands is primarily based on three factors. The current penetration of brands is a crucial factor, along with the business strategies of the providers in a country. Expansion decisions of the retail organization can also not be underestimated as a driver of brand shares. Growth is sure to be greatest in a country with a low brand share and significant expansion of hard discount stores. 
I would like to convey with this that an early market entry by hard discount format retailers involves a different numerical distribution and therefore has more meaning for the market than an early entry by supermarkets in countries with a low degree of institutionalization in food retail. 
It is impossible to define a limit for brand shares because it is the customers that control this with their purchasing behavior. At the end of the day, added value is important for the consumer and this depends greatly on the changing needs of consumers.

In your experience, are German consumers different to other European consumers? How about in terms of loyalty to their retailers or price sensitivity, for example?

I think that the shopping behavior of consumers differs not only from country to country, but also between regions of the same country. Take sales of wheat beer, for example; it is clear that there will be a significant north/south divide in Germany. In addition, we must also take into account the varying concentration of retailers when answering this question. A high density of retailers affects the intensity of competition, which in turn has an impact on consumers’ loyalty to a retailer.

Our figures show: brands are a step ahead in their own product segments. What do you believe is the recipe for success?

Successful brands provide consumers with added value, whether it is a considered price perception provided by [REWE brands] “Clever

REWE launched a gourmet brand “REWE Feine Welt

The REWE indulgence brand “Feine Welt

Will you reveal to us your personal favorite (or your family’s favorite) from REWE’s “Feine Welt

That is a loaded question, and I will try to answer it as fairly as possible. I find the Lava orange juice exceptionally tasty. It is freshly squeezed from blood oranges that grow in the sun at the base of Mount Etna on the volcanic island of Sicily and is therefore very aromatic. In addition to this “healthy

Thank you very much for the interview!

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