the Shifting Landscape of Supermarket Sales

Major A-brands, including household names like Heineken, Unox, Douwe Egberts, and Calvé, experienced a challenging year in 2024. A important factor contributing to this downturn was the prohibition of cigarette sales in supermarkets. Consequently, the total sales of the top 100 A-brands saw a 9% decrease compared to 2023.

Decline Beyond Tobacco: A Broader Trend

Even when excluding the impact of the tobacco ban,the year proved to be exceptionally difficult for A-brands. Irene Hendriksen, Retail Trade Director at Circana, a prominent research agency, notes a concerning trend: A-brands are becoming less and less relevant in the supermarket.

Long-Term Market Share Erosion

circana’s annual ranking of the top 100 A-brands reveals a significant shift over the decades. Hendriksen points out that In 2005, brand manufacturers held nearly 25% of total supermarket sales. Now, their share is falling below 20%. This decline underscores a fundamental change in consumer behavior and market dynamics.

Factors Contributing to the Decline

Several factors contribute to the weakening position of A-brands. Consumers are increasingly opting for fresh produce,an area where A-brands typically have a smaller presence. Furthermore, the rise of private label brands, often perceived as offering comparable quality at a lower price, continues to erode the market share of established brands.

Top A-Brands in the Supermarket (2024)

Here’s a snapshot of the top-performing A-brands in 2024, according to Circana:

The Impact of Manufacturer-Retailer Disputes

Ongoing disputes between manufacturers and supermarket chains are also impacting sales. Brands like Bonduelle, Senseo, De Ruijter, and Quaker, which experienced periods of unavailability at major retailers like Jumbo and Picnic, saw significant declines in the rankings.

Hendriksen explains, If people find empty shelves due to boycotts or supply issues, they often switch to another brand or a private label. Even after the A-brand products become available again, it’s uncertain whether consumers will return. The damage to brand loyalty can be long-lasting.

Consumer Loyalty: A Deciding Factor

While some consumers readily switch brands, others remain loyal to their favorites, even if it means shopping at a different store. In these cases, the retailer with the empty shelves bears the brunt of the impact, rather than the A-brand itself.

Consumer Perspectives: Value and Alternatives

At a Dirk supermarket in Hoofddorp,customers expressed understanding of the challenges faced by A-brands.

Everyone has to pay attention to the little ones. And private brands are often just as good.

Visitor at Dirk Supermarket

Another customer, disappointed by the continued absence of Senseo coffee at a nearby Albert heijn, stated, I am looking for my Senseo coffee, but it is still not for sale at the AH… So I come and buy the Senseo here.

notable Shifts Within A-Brand Performance

The composition of the top A-brands is also evolving. While Marlboro cigarettes were previously a mainstay in the top 100, the tobacco ban has led to a significant decline, with the brand expected to disappear from the list entirely next year.

Coca-Cola now holds the top spot, driven by the increasing popularity of its zero-calorie variant, Cola Zero, which accounts for 44% of the brand’s sales.

In the beer category,Hertog Jan has surpassed Heineken as the leading brand in Dutch supermarkets since 2022,with the sales gap continuing to widen. Red Bull’s energy drink sales have also exceeded those of Heineken, indicating a shift in consumer preferences.