Algori's Key Findings

Finally, to round off this report on private-label products in the oil category, the consultancy firm Algori (based on a panel of 50,000 consumers) highlights some interesting points. The market comprises 906 unique products, of which 289 are private-label brands and 482 are manufacturer brands. Private labels account for 54% of volume and maintain their price advantage: €4.64 per container compared to €6.92 for manufacturer brands.

However, the most striking feature of the category becomes apparent when looking at the SKU level. The 1-litre sunflower oil (around €1.70) is the most common product in the shopping baskets of the 16 leading chains analysed by Algori. In 13 of these, the top-selling product is a private label, whilst in only three (Froiz, Gadis and Alimerka) is it a manufacturer’s brand (see attached chart).

The market’s top five SKUs account for around 30%of shopping baskets and are almost entirely dominated by Mercadona. The ‘Hacendado’ 1-litre sunflower oil, on its own, appears in 14% of shopping baskets. This top five is completed by its 1-litre extra virgin olive oil, its 1-litre mild olive oil, the ‘Hacendado’ 5-litre sunflower oil, and only Lidl’s 1-litre ‘Vita D’Or’ sunflower oil makes the list.

The average masks significant differences, according to Algori. At Mercadona, its five best-selling products account for 76% of shopping baskets. At Lidl, the figure is 70%, and at Froiz, 68%. At Carrefour and Lupa, however, the share drops to 29%, and at Eroski to 31%.

In other words, the analysis concludes, some chains build the category around a few very strong products, whilst others maintain a much more fragmented market. This is where private-label brands find opportunities to hold their own. For example, ‘Abril’ leads the 1-litre sunflower oil category at Froiz and Gadis, ‘La Masía’ does so at Alimerka, and manufacturers such as ‘Abril’, ‘Ybarra’ and ‘Carbonell’ feature amongst the most popular choices for mild olive oil.