Private label push stirs debate over supermarkets’ power

Posted by AFN Staff Writers on 12th April 2012

The battle for supermarket shelf space is about to get even fiercer, with Australian supermarket chain Woolworths launching a major advertising campaign focussing on its private label products.

Woolworth’s new advertising campaign centres on leveraging brand value through its own Select range of products.

In a new television advertising campaign, launched this week, Woolworth’s uses the tagline, “If it’s not selected by you, it’s not selected by us” to highlight customer involvement in developing its range of private label products.

The television advertisement points out that Select products are Australian made, and free from preservatives, artifical colours and flavours.

The advertisement is said to be the first installment from Melbourne-based advertising agency Droga5, appointed by Woolworths to take charge of its advertising last month.

Australia’s leading supermarket chains have previously been accused of using “copycat” packaging of leading Australian food brands to mislead consumers into buying the supermarket’s own private label products.

The Australian Food and Grocery Council (AFGC) has been lobbying the Australian Government to do more to regulate the power of the supermarkets. The AFGC believes that the growth in private labels is making it more difficult for Australian manufacturers to get their food products onto supermarkets shelves.