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Tesco takes on discounters with launch of seven new value own label ranges

| International retailers

Tesco stepped up its fight against the discounters yesterday by launching a host of new value-orientated own label ranges in the fresh produce and meat categories.

The seven new ‘farm’ brands consist of 76 new lines under the titles Redmere Farms (vegetables), Suntrail Farms (imported fruit), Rosedene Farms (berries, apples and pears), Nightingale Farms (salads), Woodside Farms (pork), Willow Farms (chicken), and Boswell Farms (beef). 


Tesco said each product will either match or beat the price of its competitors and will replace its ‘Everyday Value’ lines where there is duplication. For example, its Nightingale Farms Cherry Tomatoes are priced at just 53p whilst its new Boswell Farms-branded beef mince matches Aldi’s price point of £1.69 and undercuts similar products by Morrisons and Sainsbury’s. 

Tesco described the new lines, which are sourced from “a range of trusted suppliers”, as a long-term addition to its offering. A Tesco spokesperson said: “Over the last 18 months we have been simplifying our ranges, launched Brand Guarantee and improved customer service. However, we know customers want the convenience of getting all their shopping in one place. These seven new brands, which are exclusive to Tesco, address our customers’ needs for quality fresh food, at very competitive prices in a single shop.” 

HSBC analyst David McCarthy commented: “We believe that Farm Brands will be price positioned to compete directly with discounters. 90% of discount shoppers also shop elsewhere, so the opportunity is for Tesco to reduce cross-shopping.” 

He added the launch was a sign of Tesco’s “growing confidence” and should not be under estimated: “Farm Brands and Tesco's ongoing stealth pricing should put the discounters under more pressure."

 

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