SuperValu claims range can cut €45 from grocery bill

A leading supermarket chain has responded to cash-conscious shoppers with the launch of its new own-brand range it claims can slash €45.26 off the bill for a basket of groceries normally costing €110.35.

SuperValu, part of the Musgrave Group, has invested €20 million in its own-brand range of more than 1,500 products and says the move represents the biggest product launch in its history.

According to research commissioned by SuperValu, four-out-of-five consumers reduced their household spending last year. Two-thirds of shoppers specifically reduced their monthly grocery spend because it was one area they could control.

And, significantly, just over half (52%) said they bought more own-brand products last year.

SuperValu has reported a 10% year-on-year sales increase in its own-brand products and is hoping for further growth with the launch of its new quality-checked range.

The company, which has 193 independently-owned stores throughout Ireland, said the savings would be delivered with the chain continuing with its strategy of using Irish suppliers for as much as the range as possible.

Two Irish suppliers set to benefit from the launch are McEvoy Foods in Clonmel, Co Tipperary and Oliver Carty Limited, Athlone, Co Westmeath.

SuperValu purchased Irish goods and services worth more than €1.6 billion in 2010.

Chief executive of the Consumers Association of Ireland, Dermott Jewell, said he suspected SuperValu was coming under pressure from the booming low-cost German multiples. “Whatever about own-brand goods, SuperValu has to be competitive on price because that is what the consumer is focussing on, as well as quality,” he said.

Mr Jewell said the move being made by SuperValu was a logical one and its research accurately reflected that consumers had cut down on their spend on groceries to pay other bills.

A spokesperson for Lidl Ireland said they did not comment on product launches by supermarket chains.