Growing importance of private labels

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The speciality Dutch cooperative Discus was pretty busy in 2007, acquiring new franchise partners, increasing sales and making its product ranges even more attractive. This year its most important job for the future is to reorganize its logistics system.
At the end of February, Discus terminated its logistics partnership with the previous partner. Cording to Discus, the urgent need to take action arose in the months preceding this when regular deliveries to partner businesses could no longer be guaranteed. In future these partners of Discus, which include wholesalers and retail groups outside the Netherlands as well as over 140 franchisees, will be supplied from a 5 000 m² logistics centre in Deventer.
Currently boasting over 203 speciality stores, the cooperative has consolidated its position further in the last year. Although smaller shops have been closed, Discus director Arjan Kramer emphasises that around 20 new outlets have been added, mainly in the north of the country. This year Kramer expects the cooperative to grow by a further ten to twenty stores, albeit this expansion isn’t likely to get up to speed until the second half of the year in view of the upcoming work on the logistics.
Good progress
In 2007 the cooperative increased its sales by approx. 4 per cent, a result in line with the previous year’s result, according to Arjan Kramer. The Discus director appears pleased with the development of the private labels, which already account for 30 per cent of sales of the existing product range. The premium brands “Frank’s Pro Gold” (dog and cat food) and “Pro Gold” (birds, small mammals, fish) in particular, which are responsible for around 60 per cent of sales achieved with private labels, have made excellent progress. Above all, the range of non-food private labels, which retails under the “FPG Quality Pet Products” logo, has been expanded significantly in recent months and currently comprises approx. 1 200 items. Arjan Kramer says: “Our main aim is to bring onto the market products that our competitors don’t have.” The company has introduced some new products into its private label ranges in the pet food segment too, for example a high-quality line of food for small mammals. Kramer says that this has been an instant success. A premium bird food line is to be launched onto the market also towards the end of this year.
Emphasis on service
The Discus central office strives constantly to increase…