Aldi announced that the Pirato crisps brand will disappear from shelves in early 2024. An announcement that stirred up quite some emotion, because Pirato crisps are iconic, aren’t they? What is the reasoning behind this decision and is it a smart marketing move?
To be clear: Pirato is not the only brand disappearing at Aldi. They are going from no fewer than 160 (!) private labels to 55 – which is still a remarkably high number. It fits within the trend we’ve seen in the supermarket world in recent years, where private labels are experiencing significant growth and are being positioned more prominently. Just think of Boni, 365, or Everyday: each one a striking example of a strong in-house brand. This also means that supermarkets with various private labels are increasingly choosing to consolidate those brands and market them under a single, recognizable name.
That wasn’t the case at Aldi. You’ll find a stack of many different private labels there, without significant synergy. There isn’t one brand with a single recognizable look & feel, but rather numerous brands like Trader Joe’s, Delinut, Milsa, and River. Aldi now seems to be heading towards a more consolidated brand architecture, although they are still charting their own course by not focusing on a single private label, but rather on a full private label structure. Diversity as a trump card?
Good to know: even though we Belgians love our Pirato crisps, you won’t find the brand on Aldi shelves in other countries. It is understandable that Aldi’s strategy involves scrapping such ‘local’ brands. It is in line with Lotus, which resolutely chose Biscoff over Speculoos.
Aldi spokesperson Jason Sevestre stated in the press that this is the main reason for Pirato’s end: ‘Internationally, we want fewer brands, not fewer products. The goal is to increase recognition. Several other snacks alongside Pirato will all fall under Sun Snacks, and that applies to all countries. That is clearer.’
Aldi is going from no fewer than 160 (!) to 55 private labels
That’s all well and good, but we are certain there are more motivations behind this decision:
_OPERATIONAL: managing multiple brands can be a logistical challenge. Larger umbrella brands simplify operational management.
_FINANCIAL: fewer brands mean lower costs in terms of packaging, marketing, and administration. This fits perfectly with Aldi’s position as a discounter.
_MARKETING: Pirato is a beloved brand in Belgium, a hero in Aldi’s heterogeneous brand landscape. You don’t just throw that overboard under the guise of ‘more recognition’. Undoubtedly, Aldi has weighed all the considerations, and the value of the Pirato name simply doesn’t outweigh the operational and financial benefits of Sun Snacks.
For us, the art now lies in communicating this decision as accurately as possible while respecting the value of Pirato. A lot of information is needed to inform consumers that the Pirato name is disappearing, but that the same products, the same taste, and the same quality will remain. While brands like Smiths and Lotus kept their packaging as similar as possible during their rebranding to guide consumers through the transition, Aldi is taking a bold approach here, and their crisp packets will change radically from 2024. Subtle phasing out is clearly not Aldi’s style. We find that remarkable and, above all, fascinating: because how will that affect customer loyalty?
Will Aldi launch a major campaign to market Sun Snacks in Belgium? How will they communicate both in-store and externally in the coming months? And will that compensate for the loss of Pirato?
We fully understand that Pirato must now set sail. In the context of operational excellence, the growing importance of private labels, and clear communication, we can only say: well done, Aldi. We have our reservations about their communication so far, and we are particularly curious to see what the future will bring. Even though we’re going to miss Pirato, the millennials among us can fortunately still count on their beloved Pirato crisps for their Christmas and New Year’s Eve appetizers.