Tesco is advancing the distribution of its own-label products abroad
with the formal creation of a division called Tesco Export.
A range of Tesco-branded goods will gain wider exposure in stores across
Europe as Tesco Export becomes more important to the retailer’s long-
term strategy.
Tesco has been selling its products through a range of resellers in
Europe for some time, though it’s been unwilling to acknowledge it.
Tesco Export demonstrates the importance Tesco is now placing on brand
recognition in Europe. The division will now be placed alongside Metro,
Express, Direct and Vin Plus in its brand family tree.
A number of other supermarket chains are looking to Europe as a possible
market.
Safeway is exploring European opportunities as part of an 11-member
international marketing group called Associated Marketing Services. Its
self-scan trial came out of discussions with fellow member Ahold of
Holland.
Sainsbury’s has also been looking for European and UK partners for its
Classic Cola brand, to be sold outside the normal Sainsbury’s superstore
environment.
Tesco has accelerated its European expansion. In November it acquired a
79% share in the Polish chain Savia, to add to its 71% stake in
Hungarian chain Global.
Tesco products have normally been targeted at areas such as Malta or
Gibraltar which have strong expatriate communities, but other areas such
as France and Germany are also being targeted.
The company said its export division has existed for some time and that
it would continue its role looking at developing international markets.
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