Lidl and Penny expand high-quality private label offerings

German discounters Lidl and Penny are increasingly focusing on high-quality private label products to compete with established brands.

Lidl has implemented nutritional transparency through the Nutri-Score system and has seen success in independent testing. For instance, the Lidl brand ‘Alesto Selection Studentenfutter Classic’ received a ‘Very good’ rating from Ökotest, notably remaining free of detectable pesticides while some competing brand-name products failed tests due to multiple pesticide residues.

Similarly, Penny utilizes various private labels such as ‘Natur Gut’ for organic goods and ‘Food for Future’ for vegan products. Many of Penny’s private label items, particularly in the dairy category, are produced by well-known brand manufacturers to ensure quality while maintaining lower price points.