UK-based supermarket Tesco is launching own-label range of value products as it prepares to compete against discount chains such as Lidl and Aldi.
It will launch seven farm brands including 76 new lines across fresh produce, meat and poultry, intended to either match or beat the price of competitors. If there is duplication, the products will replace those in the existing Everyday Value basics range.
Tesco plans to use colour-coded packaging and use fabricated British-styled farm names to attract shoppers. For instance, Woodside, Willow and Boswell Farms would represent fresh pork, chicken and beef, respectively.
Redmere Farms will denote vegetables and Suntrail Farms brand name will be used for imported fruit.
The range is intended to meet the needs of new quality levels at affordable pricing. Prices for fruit and vegetables range from 35p for a lettuce to £1.69 for a punnet of raspberries.
Tesco's latest move is part of the company's turnaround strategy designed by CEO Dave Lewis, who joined in September 2014. The strategy focuses on simplifying its product range and understanding low pricing strategy.
A Tesco spokesperson was quoted by The Guardian as saying: "Over the last 18 months we have been simplifying our ranges, launched Brand Guarantee and improved customer service.
"However, we know customers want the convenience of getting all their shopping in one place. These seven new brands, which are exclusive to Tesco, address our customers' needs for quality fresh food, at very competitive prices in a single shop."
The decision to use farm names comes at a time when Tesco claimed to support British farming association on social media. The National Farmers' Union had questioned the use of fictitious farm names based on the number of real ones that existed.
A company spokeswoman said that some names such as Nightingale and Rosedene, which had been operating farms were chosen in partnership with its suppliers.
The spokeswoman was quoted by the publication as saying: "In all cases, the fresh food being sold under our new brands is sourced from a selection of farms and growers. Some are small, family-run farms while others are of a larger scale - and every product has been reared or grown to specific standards from known and audited farms and growers."
