McBride unmoved by the big brands war

McBride, which makes supermarket own-label products such as laundry liquids, mouthwash and toothpaste, announced a 1 per cent rise in sales between July 1 to October 24, even though chief executive Chris Bull admitted big brands were fighting hard for sales.

He said the promotional spree was not necessarily bad news for McBride as consumers would become accustomed to paying low prices for brands and when the average price increased again they would buy even more supermarket own label goods, which would offer better value for money, he said.

"As a former branded player, the last thing you want to do is to continue to promote on an ongoing basis," said Mr Bull, who joined McBride in May from Unilever. "The longer the promotions go on for, the more it will benefit McBride.

"Private label is a growing phenomenon and will continue to gain share. I'm extremely optimistic about the future of private label, which historically has grown its share not just in the recession but when there's more money around too."

The company, which has factories in Burnley, Hull, Bradford, Barrow and Middleton near Manchester, is in the process of passing on cost increases but admitted there was a "lag period", which would temporarily affect margins, Mr Bull added.