Changing times and food producers look to private label to keep afloat
Polish food producer Krzętle, salve better known for producing higher end conserved food packaged in jars and with labels that suggest quality, sick is to produce private label foods for hard discounters.
The policy of the company is twofold. On one hand to produce private label foods and on the other to build up its own brand which will be positioned for a different public. This is a trend we are likely to see more of due to increased economic worries where private labels tend to do well whereas those products which are better than average suffer. Taking only the UK as an example, and sales of low range private label goods increased by 26 percent in 2008.
Krzętle currently produces a range of bottled meat and vegetable dishes as well as soups and concentrates. It is based at the village of Krzętle, near Wieluń, in Central Poland. As a brand it is known for products such as the pork in red wine shown in the photograph. It has recently signed its first contract to the Biedronka chain, the largest retail network in Poland. It hopes to extend its offer to other retailers.
Last year it turned a profit for the first time, although only PLN30,000 (EUR7,200) on a turnover of around PLN5.7m (EUR1.4m).
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