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Top brand consumer goods companies outperforming sub-brands and own label

NEW DATA HAS shown leading branded goods companies are increasing both price and volumes despite pressure on consumers. Major sports supporter companies such as Unilever (Dove, Persil etc.), Danone (Volvic, Activia etc.) and Nestle (Milka, Nescafe etc.) have all managed to pass on rises in raw material costs to consumers whilst encouraging them to buy more. The secret seems to be providing products for those trading down as well as up. Volumes at the luxury end may be down but consumers are switching to higher margin mid-range products from the same manufacturers proving they still trust the brands they know. The “affordable treats” category is delivering double and high single-digit growth for brands in a market where others are suffering margin erosion.

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