Paschal goes on the attack before him white label dominance in the dairy segment, and which has led it to lose market share in the last year. The food company has announced the launch of a new brand, Movit, within a strategy of “relaunching and reinventing the entire dairy portfolio,” as explained by its general business director, César Vargas.
Retail brands represent around two-thirds of the dairy market, something that has accentuated the inflation crisis. “The milk category does not have a relevant story right now, nor an important innovation. “It is decided to buy by price, and today it is a category of demand for distributors,” analyzed the person in charge of Pascual’s dairy sector, Natalia Fernández.
The company recognizes that the weight that private labels have gained is one of the reasons, although not the only one, to press the accelerator on innovations. Pascual estimates the investment associated with the launch of Movit at around four million euros, and sees the potential to make up to three annual launches of that size. “This bet and this investment cannot be made by distribution brands,” said the executive. Other factors are the loss of consumption, of 29% in the last 20 years according to Kantar data, accentuated among children from 0 to 14 years old, a range where the decline is 73%.
“As Pascual brand, we know that we are not going to lead the market in the distribution channel, but we want to give value to milk again,” added Natalia Fernández.
Pascual now divides its dairy strategy into three axes: essential nutrition, advanced nutrition and enjoyment. Its basic dairy products would fall into the first, while its new launch falls into the second. Movit, according to Pascual, has elements such as calcium, phosphorus, zinc, or vitamins C, D, K, magnesium or manganese. “A specific benefit is sought: bone health and mobility,” said Fernández. Pascual’s objective is to double its market share, currently 6%, in the segment of milks with higher calcium content.
Distribution
One of the problems that brand manufacturers, like Pascual, usually highlight is the difficulty of introducing their new references into supermarket chains. In this case, its general business director, César Vargas, has admitted that “it is one of the great difficulties and problems we have. Before it was easy to reach 60% of the distribution, today it is a success to have more than 20%.”
Its new brand reaches a percentage of 50%, also motivated because Movit will replace its current reference, Pascual Calcio. Where it will not be, for the moment, is in Mercadona. The food distribution leader only sells Pascual dairy products in Burgos and Segovia, while at a national level it does sell its Bezoya water or its Bifrutas juices.
“The hope is that we are. The objective is to convince them, that the sales success encourages them to distribute Movit”, stated César Vargas.
The Burgos company aspires to reach 1,000 million in sales at the conclusion of its 2024-2027 strategic plan, although Vargas has recognized that there are possibilities of reaching that figure in 2026. By 2024, it aims for a turnover that will be close to 950 millions.
Among the drivers of greatest growth, the company identifies the categories of water, coffee, vegetable drinks and its distribution business, in addition to a marked focus on the hospitality industry.
