Sainsbury’s calls in P&G…

Sainsbury’s marketing director Kevin McCarten has set up a special team with Procter & Gamble to investigate how the household goods giant can help the retailer reduce its dependence on own-label.

The landmark alliance signals a U-turn on the part of Sainsbury’s, which has been notoriously hostile to P&G and other manufacturers playing any role in its stores.

P&G is helping it to “remerchandise” the family area of toiletries, health and beauty products and baby care, aimed at young family shoppers.

One analyst says: “Sainsbury’s has had tough relationships with P&G in the past, and now McCarten is making efforts at appeasement.”

McCarten had worked for 12 years in marketing at P&G.

Sainsbury’s is slashing lines on two of its top own-label sub-brand ranges to make space for more branded products.

The grocery chain, which this year brought in profits 100m lower than last year, is giving more shelf space and ad support to brands in order to widen choice for shoppers.

It follows the news last week that Sainsbury’s is understood to be discontinuing its chewing gum sub-brand, 66 (MW June 28).

The TOPS oracle care range, introduced only six months ago (MW October 27 1995), is under review, and lines are expected to be dropped.

McCarten says: “We are re-evaluating TOPS, asking whether we have gone too far in the number of lines and dropped branded lines we shouldn’t have.”

The Novon washing detergent range is being slimmed down in smaller stores with many lines being ditched. The complete range will only appear in the largest stores.

In both cases, more lines of branded products will be re-introduced to Sainsbury’s shelves and room is being made for “secondary” brand lines.