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Private label: 8.5 billion typical local products sold in large-scale retail trade

In Italy Mdd goods cover 31.5% of the consumer goods turnover, up from 28.3% in 2019

Almost 30% (27.2%) of the turnover of typical local Italian products, equal to 8.5 billion euros, is generated directly by Modern Distribution through distributor brands. The report “Private Label and Made in Italy: the role of Modern Distribution”, created by The European House - Ambrosetti for ADM - Associazione Distribuzione Moderna, and presented at the inaugural conference of Marca by BolognaFiere 2024, also highlights how for the products Italian distributor brands are worth 4 billion euros abroad, 8% of total international food & beverage exports of Made In Italy products.

“The relationship between local producers of private labels and Distribuzione Moderna”, commented Mauro Lusetti, president of the Associazione Distribuzione Moderna (Adm), “is fundamental for the development of Made in Italy not only in the internal market, but also beyond border: Modern Distribution represents a concrete support for the internationalization process of local Italian manufacturing companies which can, through distributor brands, make products and typical products that represent the culture and history of the territories from which they come from known abroad" .

"In a difficult economic situation - Deputy Minister of Business and Made in Italy Valentino Valentini - private label products have played an important social and economic role by protecting the purchasing power of families and supporting the supply chains and production of Made in Italy, as demonstrated by the Position Paper of The European House - Ambrosetti in collaboration with Adm and Marca by BolognaFiere. Mimit - he assures - is ready to do its part to support the role of modern distribution with a pragmatic approach, based on dialogue with stakeholders private individuals and the coordination of measures. This is the spirit that led to the establishment of the permanent table dedicated to the sectors of distribution, trade and industry of large-scale consumer goods. Among the measures already adopted for the sector are the anti-inflation quarter and the provisions included in the Budget law which aim to combat inflation, such as the cut in the tax wedge, the refinancing for the whole of 2024 of the 'Dedicated to you' card for the purchase of basic necessities and fuel, the postponement of the Sugar and Plastic taxes". Valentini also recalls the 5.0 transition program which benefits from a Pnrr allocation of over 6.3 billion and the law on made in Italy, created to protect, enhance and promote quality Italian production. "In the spring - concludes Valentini - we will present an organic industrial policy document resulting from the sectoral discussions that we are carrying out with the aim of identifying clear lines of action for the development of the national entrepreneurial fabric".

Over 42% of the overall turnover of typical local Abruzzo production companies was generated by the collaboration with Distribuzione Moderna through distributor brands (Mdd). It drops to 40% for products from Friuli-Venezia Giulia and 36.9% for those from Campania. According to the report created by The European House-Ambrosetti for Adm, local Piedmontese producers achieved (2022 data) 27.1% of their overall turnover thanks to MDD. Similar percentages are recorded in Umbria (26.8%) and Marche (26.1%). Emilia-Romagna, Veneto and Lazio are among the top 10 regions to benefit from collaboration with large-scale distribution with respectively 25%, 24.5% and 23.8% of sales of local products through Modern Distribution. This is followed by Tuscany (11th, 23.3% of turnover), Liguria (12th, 23.2%) and Sicily (13th, 22.7%). Below 20% are Trentino AA (19.3%), Lombardy (19%), Basilicata (13.3%) and Puglia (12.1%). Molise (9.8%), Calabria and Sardinia (both at 4.8%) close the ranking.

“To understand the fundamental impact of Modern Distribution and specifically of Private Label or Mdd”, explained Valerio De Molli , managing partner and CEO, The European House – Ambrosetti during the opening conference of Marca by BolognaFiere 2024 “it is enough consider that the MDD indirectly involves around 50 economic sub-sectors and over 1,500 companies in the agricultural and food sector (92% Italian and 78% small and medium) that produce food marketed under the modern distribution brand. The effects of inflation and the reduction in sales volumes therefore directly affect the assets of local Italian businesses which represent the backbone of the country's economy".

Private label products (MDD) today represent 31.5% of the entire turnover of packaged consumer goods of Modern Distribution in Italy, including discount stores - in 2019 it was 28.3%. 2023 closed with a record turnover of Mdd products of 25.4 billion euros, confirming how Private Label establishes itself as the only growing channel supporting the entire food retail sector: +332 million euros also in the last year.

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EFA News - European Food Agency
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