Kaufland is planning serious changes for the benefit of customers. At least that’s what it’s called. But they are not the only ones to benefit.
Many consumers buy their own brands in the supermarket. Because these are much cheaper – at least that’s how it used to be. Because in the current times of crisis, a lot has gotten out of balance and this irrevocable law has therefore started to falter.
Own brands are becoming more expensive
In relation to branded products, own brands have become significantly more expensive. And therefore less attractive for customers.
Kaufland now wants to change this once more. The Schwarz subsidiary now wants to sustainably increase the attractiveness of its own K brands, such as K-Classic and K-Favorites. The strategy is relatively simple. The sale of own brands ensures higher profit margins for supermarkets and discounters. Following the general development, the prices have also risen significantly in recent weeks, because food retailers are also suffering from rising costs and slumps in sales.
Kaufland wants to make its own brands more attractive
Kaufland is now reacting to the current situation. The retail chain would like to make its products tastier in the future and at the same time give customers a better conscience. Kaufland is pushing for the conversion of its own brands to healthier recipes, reports Lebensmittelzeitung. In this context, Kaufland therefore wants to reduce unhealthy additives. Many products will contain less fat, sugar and salt in the future.
This is part of a reduction strategy that has been running since 2018, as Kaufland announced. That sounds good at first. But there’s a catch. Because the healthier recipes also make the products more expensive. For Kaufland, this in turn means a higher profit margin. The retail chain can thus earn even more money with its products in the future.
Kaufland earns a lot of money with its own brands.
That certainly doesn’t come as a surprise. Even changing the recipe is not selfless, because reducing various ingredients also saves a lot, following all, the raw material prices have also risen significantly. For example the price of sugar. If Kaufland reduces the sugar in its own brands, you save money there when purchasing raw materials.
