Rise of own-label casts shadow on innovation
"Private [own-] label now represents a third of all NPD (new product development)," said Jago. "In sugar confectionery, half of all retail development in 2010 was in retail private label, so it's proving to be quite a threat to brands in the category." In cakes, 43% of NPD occurred in own-label products.
He said the number of new sugar confectionery products continued to decline overall, but the reverse was true for biscuits.
Aside from retailer own-label, the number of new ethically traded products had also risen dramatically. "There has been huge growth in ethical and sustainable products. This has been one of the biggest drivers and there has been far more Fairtrade activity in private label."
However, he said that since only 46% of consumers considered Fairtrade to be an important category, it had much more potential.