Tesco’s Value range gets a ‘refresh’ after two decades

Tesco has abandoned the blue and white stripes of its Value range, almost 20 years after it pioneered the category.

Value products will be replaced by a new brand called Everyday Value, which the supermarket giant claims will be a step up in quality, as it said that “customer needs have changed”.

The line will contain no MSG, no hydrogenated fats, no artificial flavours or colouring and no genetically-modified ingredients, and will include healthier options than its predecessor, including leaner mince and tinned fruit in juice instead of syrup.

British flour will be used to make bakery products such as pancakes, crumpets and scones, while tinned peas, beetroot and carrots will also be 100 per cent British.

The revamped packaging is “more colourful and softer” than the blue and white of the old Value range, with other improvements including biscuits in easy-open packets, grated cheese in re-sealable bags and fruit juice in easy-pour cartons.

Tesco UK marketing director David Wood said: “Tesco was the first supermarket to launch a value range back in 1993, the blue-and-white striped brand giving customers a down-to-earth option.

“Almost 20 years on and an affordable quality range is more relevant than ever, but customer needs have changed.

“We have listened closely to what our customers want.”

Neil Saunders, managing director of retail research agency Conlumino, said the decision to ditch the Value range was “long overdue”.

He said: “At its creation it was an innovative and bold merchandising move that allowed Tesco to promote its value credentials and grow share at the price-sensitive end of the market without sacrificing the middle ground.

“However, the market has since evolved and Value was looking tired and was becoming outmoded, especially when compared to competitor offers.

“This refresh should allow Tesco to reconnect with consumers.”

Meanwhile, the supermarket giant announced yesterday it has sent its second-hand car venture to the scrapyard – just a year after its launch.

The group said it had decided to ditch Tesco Cars, a joint online venture with Carsite, after it failed to secure a decent supply of vehicles.

Tesco Cars aimed to advertise up to 3,000 cars a week when it was first launched in April last year, but reports suggested that at the end of last year it was selling just 150 vehicles a month.

Tesco has also decided not to proceed with its handyman business, Tesco Home Services, after a trial.

The closure comes at an uncertain time for the UK’s biggest supermarket, as chief executive Philip Clarke prepares to unveil his turnaround strategy following a shock profit warning, a share-price slide and the departure of UK boss Richard Brasher.