Eroski fights slowdown with house-brand products
The leader in the Spanish food distribution sector will introduce a new range of house-brand products to its recently-acquired Caprabo supermarket chain.21 April 2008
MADRID - If consumer spending goes down, lower your prices.
Using a time-honoured technique, Eroski, a leader in the Spanish food distribution sector, incorporated a new range of house-brand products to its recently acquired Caprabo supermarket chain in April to fight the nationwide economic slowdown.
Eroski, which bought Caprabo in 2007, has this month decided to accelerate the adaptation process by stocking its new supermarket shelves with up to 1,000 products sold under the Eroski brand at prices as much as 20 percent cheaper than Caprabo's own house-brand products.
The move follows expert reports underscoring the direct link between an economic crisis and a rise in the sale of generic brand products.
The new products will soon be sold at the 323 Caprabo sales points in Catalonia and Madrid, which have around two million clients.
The Eroski group was the first distribution company in Spain to launch its own house-brand products in Spain, doing so in 1977.
The group, which grew out of a decision by 10 small Basque cooperatives to join forces in 1969, has grown into a network of nearly 1,300 establishments in Spain - including supermarkets, gas stations and perfume stores - and close to 40 more in France.
In 2007, the company registered sales of EUR 7.6 billion, a 19 percent rise from the previous year thanks to its acquisition of the Caprabo chain.
[El Pais / Santiago Hernandez / Expatica]