For Private Labels That Add Value to Shoppers’ Lives

Year on year, private labels are increasing their strategic value for retailers. Where national brands are merely used to compete on price, private labels have become a major distinguishing factor for retailers to show their purpose and the value they add to their shoppers’ lives.

Due to inflation and shoppers’ ongoing concerns about their budgets, affordability remains a crucial driver for private label sales. Nevertheless, retailers and their label suppliers are succeeding in their joint effort to surprise consumers. They are transforming everyday staples into upscale offerings with enhanced taste and quality. For instance, they are adding truffles to tortillas, or pierogi (small dumplings from Eastern European cuisine) with mascarpone. And how about vinegar crema with 47% prosecco? This item, introduced by the German retailer Rewe, also astonished the judges, who awarded it an International Salute to Excellence Award.

In this year’s edition, 550 new private label items (370 food items and 180 non-food items) from 65 retailers in 24 countries were considered for the highest recognition. An international panel of judges – including former retailers, chefs, marketing professionals, nutritionists and journalists – evaluated these items in intensive sessions.

The high levels of creativity and innovation allowed the judges to be very critical. 90 new private labels (58 food items and 32 non-food items) received a Salute to Excellence Award.

90 winners by 35 retailers from 17 countries

These winners were introduced by 35 retailers from 17 countries. Most award winning private labels (20) were introduced in Germany, followed by Italy with 11 Salute-winning items. Denmark, Poland and The Netherlands share the third place in the ranking with 7 Salute-winners each, and Portugal fourth with 6 award winners. Retailers in the Czech Republic, Ireland, Spain and – the first non-European country in the ranking – South Africa complete the top 5 with 5 Salute-winning items per country. Combined, the 10 countries representing the top 5 account for 78 Salute-winners. The other awards were divided between retailers from Belgium, Latvia, Norway, South Korea, Sweden, Thailand and Ukraine.

The top three retailers, Dirk Rossmann and REWE Group from Germany, and Biedronka from Poland, won 9, 7, and 6 awards respectively. This year’s competition demonstrated a level playing field, with strong entries across the board and a broad distribution of awards, reflecting the diversity and quality among the participating retailers.

What the Judges Say

“Private label manufacturers keep on raising the bar of quality, both in food and non-food. This applies not only to the product itself and the ingredients used, but also to packaging design.”

Another judge agrees: “Packaging design is increasingly creative and consumer-focused. I saw several appealing examples of refillable packaging in non-food and minimalistic design that really gains traction. From a packaging perspective, manufacturers need to seize every opportunity to reduce packaging, use recyclable material and design refill options. That really caters to shoppers needs.”

The jury was particularly impressed by the outstanding quality of the products presented, including those from countries outside Europe like Thailand, South Korea, China and South Africa. That said, some products posed a challenge for the European judge’s taste. “The freezedried durian submitted by a Thai retailer was clearly remarkable”, he says with a smile. Known for its strong smell, durian fruit has lovers and haters. Learning to appreciate it, takes time and perseverance. Or, as the judge puts it with an understatement: “this is clearly a product that needs to grow on you.”

Trends In Food And Non-Food

A key trend in the food category is the ongoing rise of vegan products, not just as meat substitutes, but as independent offerings with their own identity and appeal. Also functional ingredients like adding coffee or caffeine as additions to food items is a remarkable trend. Some judges think this may cater to niche markets like the gaming community. Functional ingredients also appeal to healthy eating and sports nutrition items. The Irish retailer Musgrave impressed the jury with its SuperValu Signature Taste range that, as the jury puts it, blends innovation, quality and taste.

In non-food categories, natural and fragrance-free products were dominant. Not only in personal care, also detergents and other cleaning products are focusing on ‘no aromas’ and minimalistic packaging designs align with the product performance. In nonfood, retailers are combining sustainability with convenience and affordability. The Dutch retailer HEMA is a good example, with solid personal care bars that are sustainable without the need for plastic packaging.

Take-Aways From This Year’s Competition:

• Storytelling and product presentation remain of key importance.
• Staying competitive in today’s market requires constant investment in innovation and standout packaging design, both key to the growth of the private label sector.
• Remarkable are sports nutrition supplements that is developing as a new category, and in beverages RTD drinks and non-alcoholic cocktails catering to the trend of convenience and non-alcoholic options.
• Sustainability and health (like Nutri- Score) are important claims, but this doesn’t mean that indulgence is off the table. Quite the contrary! Both in food and non-food there is enough room for indulgence, like affogato, additions of truffle, items created by Michelin-star chefs or shower gel containing hyaluronic acid and trendy thermal facial waters.

All winners of the PLMA 2025 International Salute to Excellence Awards will be displayed on 20 and 21 May at the Idea Supermarket section during the World of Private Label International Trade Show in Amsterdam.