Tesco strikes exclusive P&G launch deal

Tesco has signed an exclusive distribution deal with Procter & Gamble to launch its up-market Physique haircare brand in the UK.

It is the first time that Tesco has struck an exclusive deal – lasting for nine months – to sell a major haircare brand. Rival Boots has always had a strategy of stocking major new brands on an exclusive basis and Tesco hopes to strike similar deals to build its share of the health and beauty market.

Tesco category manager David Cooke says: “We plan to do this in a number of ways: by offering our customers a comprehensive choice of major brands; introducing exclusive ranges in partnership with brand owners; and developing our own ‘super brands’.”

The Physique range is already on sale in the US, Canada and Venezuela. It will target the growing designer haircare market in the UK. Tesco plans to market the range at the point of sale, through in-store demonstrations, sampling to online shoppers, coverage in the Tesco customer magazine, mailings to Tesco Clubcard customers, e-mails to Tesco.net ISP users and posters outside the stores.