Austria: Supermarkets damaging food and drink industry
Article Abstract:
The ongoing price and advertising war among Austrian supermarkets could damage the food and drink industry, according to Christian Schett, marketing manager of grocery chain Zielpunkt. Thanks to the advertising campaigns, in which supermarket chains Spar, Billa and Merkur have each claimed that they offer the cheapest prices, customers will lose their trust in all supermarket chains. For Michael Blass, director of the association for the food and drink industry, that the price has become the main selling point shows that the supermarkets have learned nothing from scandals about food safety. He claims that the supermarkets' aggressive advertising campaigns are destroying the producers' and ministry of agriculture's attempts to convince consumers that food has a tangible worth. Consumer associations see the advertising as positive as it encourages consumers to compare prices. In 2000 the Austrian food and drink market had a turnover of Sch 151.7bn. The two market leaders, Spar and BML, possess about 66% of the market between them, with Spar's share at 30.8% and BML's at 34.9%. As the gap between the chains closes, advertising becomes more and more aggressive.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2001
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AUSTRIA: PRIVATE LABELS GAINING GROUND
Article Abstract:
While the share of private labels in Austria is still believed to be lower than the 23% of Germany, Austrian retail groups are boosting their own brands. Adeg aims to double the share of sales under private labels to 20%. Also the BML group of Billa, Merkur, Mondo and Emma is to boost private labels. In year 2000 the company's Ja! Naturlich organic private label increased sales by 20% to Sch 2.3bn. Spar stocks 570 private label products. Unilever, with its Eskimo ice-cream brand, admits that private labels are already hurting the company. However, the share of private labels is particularly high in the milk market. Berglandmilch estimates that between 45% and 50% of milk products sold in Austria are under private labels. This is explained with the fact that the Austrian milk market was protected for a very long time.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2001
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AUSTRIA: NOSTALGIA ICE-CREAM POPULAR
Article Abstract:
Eskimo reports that it has sold 1mn Paiper ice-cream lollies in the first week after the re-launch in limited edition of the ice-cream hit from the 1970s. The company produced 3mn pieces of Paiper, which is about as much as some of its best-selling ice-cream products such as Cornetto and Magnum sell in a whole season. The sales of Paiper in the last week exceeded those of all other Eskimo products in a period of 14 weeks.
Publication Name: Presse
Subject: Business, international
ISSN:
Year: 2000
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