Tesco cheers own-label success

08 December 2010

LONDON: Tesco, the retail giant, believes its Finest range of own-label products can rightfully be known as "the biggest food brand in the UK".

The company reported that its total organic sales in the UK climbed by 1.5% during the last quarter, bettering the 1.3% expansion registered across the previous three months.

"There's a good recovery going on in the economy, it's slow, but steady," said Laurie McIlwee, Tesco's finance director, while speaking with analysts.

"It is hard to call what the fourth quarter's actually going to be. I would say it is going to be an improvement quarter-on-quarter in terms of like-for-like ... We still feel there is good growth in the UK."

Despite the downturn, the firm's Finest private-label selection has recorded sustained double-digit increases in sales, and McIlwee suggested this offers hope to other manufacturers.

"It is the biggest food brand in the UK bar none and it is premium. That should give everyone confidence," said McIlwee.

The supermarket operator derives annual revenues of more than £1bn ($1.6bn; €1.2bn) from the Finest portfolio, measured against approximately £800m delivered by its "Value" range of low-cost goods.

Data sourced from Daily Telegraph/Bloomberg; additional content by Warc staff