November 21 2006, 11:39

Fozzy Group introduces Private Lable on market

According to information provided to "Agrooglyad: Vegetables and Fruits" journal by Press Service of Fozzy Group, the corporation announces the launched sales of the commodities under Private Lable PREMIA. The products of the own or chain trade marks (Private Lable) are becoming more popular in the world. In some countries more than a half of food staff in supermarkets is sold under Private Lables.

On the first stage in November-December 2006 the corporation Fozzy Group plans to introduce 90 items of food stuff in the medium price segment. Due to the own distribution centers the corporation will be able to perform a nearly simultaneous launch of Private Lable project in the stores SILPO, FORA and FOZZI on the whole territory of Ukraine.

Vladimir Kostelman, the President of Fozzy Group corporation, says: "there are definite components in the chain of commodity appreciation on the way from producer to consumer. We can influence the components by the introduction of the Private Lable. The physical intermediaries (distribution companies) are excluded out of the chain. In addition to it, significant funds can be saved due to the fact that the producer does not include the trademark promotion cost and many other additional expenses to the set price. The other fact is important that the producers compete in the specially set tender for the right to produce commodities under our trademark. So, we can offer the best-quality goods on the significantly lower price comparing to well-known brand names. Of course, the greater the supplies are done, the larger discounts we will be able to get in future and share this profit with the buyers".

One of the peculiarities of the Private Lable PREMIA is that Fozzy Group is initially oriented on the commodities of the medium price segment. And, by means of the larger volumes the chain will be able to make the producers set fair prices for many commodity items. "We have decided to use the joint name PREMIA in all our chains in order to accurately and comprehensively introduce the Private Lable to consumers. To our opinion, PREMIA let us communicate to the fullest extent the profit got by that consumer who chooses for Private Lable commodities", - Mikhail Dudnik says, the Vice-President on Marketing, Fozzy Group corporation.

The main advantage of the Private Lable for the consumers is the possibility to get quality commodities for affordable price. The price difference between Fozzy Group Private Lable and the commodities under well-known brand names of the same quality will constitute 5-20%. The share of the commodities under PREMIA trademark in the relevant product category will be 20-30% on the first stage. Dmitriy Tsygankov, the Manager of Private Lable corporation, Fozzy Group corporation, says: "In the future we plan to continue introducing Private Lable products only in those commodity groups where we are able to achieve the significant price decrease for consumers. The offered quality will be absolutely the same comparing to the major brands-leaders' quality".

Taking into account the fact that Fozzy Group primarily specializes on food sales, the main accent of Private Lable project will be made on food commodities. But, as both the chains and the Private Lable are developing, the company plans to pay attention to nonfood commodities. It will go about convenience goods first of all. Also, Fozzy Group plans to introduce Private Lable in other price (economy and premium) segments as well.

Note. Fozzy Group is a trading-industrial corporation. It occupies one of the leading positions on the market of wholesale and retail trade in Ukraine. Fozzy Group corporation consists of SILPO chain (108 stores), FORA chain (55 stores), drugstore "Be healthy" (16 stores), wholesale hypermarkets FOZZI (3 stores), chain of groceries "Dnepryanka" (11 stores) and 3 stores of household facilities "Otto Shteker". The industrial group consists of Nizhyn cannery (Nizhyn trademark), confectionary plant named after F. Engels, Snyatyn poultry factory. Also, the corporation owns the restaurant "At lame Paul's" in Kyiv. In 2004 the turnover of the trade chains of the corporation constituted $ 290 mln. The trade turnover is planned to reach $ 1.2 billion in 2006.

In the first stage of Private Lable introduction the corporation plans to use this brand for such commodities as canned green pea, corn, seasonal canned produce (cucumbers, cherry tomatoes, mixed type), marinaded mushrooms, olives, canned pineapples and peaches, sunflower oil, potable water, effervescent beverage, juices, semi-ready ravioli and dumplings, ice-cream and red caviar.

It is worth to mention that Fozzy Group corporation plans to actively participate in the third international conference "Fruits and Vegetables of Ukraine 2006. Open Market" to be conducted on December 5th-6th 2006 in Kyiv, on the territory of the National Complex "Expocenter of Ukraine". Mr. Maxim Didenko, the Manager of "Fruit and Vegetable" area, Fozzy Group corporation, will present a repot in the framework of the specialized trade forum. He will speak on the development trends of the retail trade and on the supermarket requirements to the produce quality, packing, shipments and supply frequency. To participate in the conference, you need to register online.