Netto is launching its first premium own-label range under a new Simply Irresistible brand as part of a strategy to attract more affluent consumers and become a one-stop shop.
The move comes two years after rival discounter Aldi launched its premium range, Specially Selected, in a bid to compete more effectively with the multiples.
Netto is understood to be assessing the brand's potential across its food offer but will kick off with a range of cakes. Packets of premium fruit such as cherries, nectarines and grapes in gold and black packaging will follow.
The discounter is also planning to introduce meat under the Simply Irresistible brand towards the end of the year, along with a more extensive range of cakes.
Netto said the move was a direct result of a successful trial of luxury Christmas mince pies in December. It was the first time Netto had introduced a premium own-label product, selling 1.8 million luxury boxes, outstripping sales of other mince pies by 10 to 1.
"After the success of the mince pies this seemed like a natural way to go," said a Netto spokesman.
"People were previously coming to us for certain things and then going to other supermarkets for treats. Our stable has always been mainstay products such as milk, eggs and baked beans," he said. "Our rivals have plans to become more mainstream. It is the way the discounters are shifting and it is part of a general shift in Netto to become more mainstream."
The cake range, which includes packs of eight jam tarts, six Bramley apple pies and six cherry Bakewell tarts, is launched this week. All are priced lower than the big four's premium ranges, at 79p a pack.
"Quality-wise these products are benchmarked against the supermarkets' premium own labels, but priced at the standard own-label level," said Mike Hinchcliffe, Netto's marketing director.
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