Austrians trust their good old brands

According to Nielsen Austria, retail turnover growth in food products is losing speed in Austria. Last year food sales augmented by 4.8 percent, largely due to increased prices, but in 2009 the inflation rate remained below 1 percent each month. In 2009, Nielsen registered a 1.3 percent increase in food sales in the first six months, compared to the same period in 2008. In July, growth surpassed 4 percent, mainly due to the performance of towns that attract tourists. – Retail seems to profit from people going to restaurants less frequently and cooking more at home. In the second quarter, volume sales improved, but this is true for other countries too. Private labels were unable to expand robustly, their growth rate is the same as in past years. Consumption habits did change, but not because of the economic crisis. On the contrary, owing to the crisis consumers look for their good old brands, the ones they can trust. These include professionally managed private labels as well – says Dorothea Hagenauer-Stattmann, retailer services director with Nielsen Austria. Discount chains Hofer and Lidl stopped expanding, but their estimated 23-percent market share is stable. This year 29 percent of FMCG sales was realised in promotion – their number increased the most in food categories.