Tag Archives: store brands

The growth in and performance of private label products these days is staggering.  Private label units are up 1.7 billion (6.4%), and national brand units are down 1.5 billion (1.7%)[1].  The numbers have been increasing steadily since 2006, when 16.6% of SKUs were private label.  In 2009, private label products accounted for 24.7% of grocery stock[2].  Sales of store brand units reached an average 22% share across all departments, making gains in all but dairy[3].   According to the study released by Deloitte on Monday, even more gains are predicted by both consumers and retail executives.

Why?  What’s behind the surge?

Retailers have committed to improving the quality of private label products due in large part to the respectable profit margins to be gained.  Store brands now account for 90% of all supermarket gains with sales reaching $55.5 billion.[4] Retailers have realized the opportunity and are stepping up their game. Ahold USA recently announced a broad consumer taste test initiative that holds their brands up against national brands; those that don’t perform will be reformulated or eliminated.

“The bar has been raised,” according to Ahold’s Melissa Smith-Hanzen[5] and Consumer Reports concurs.  Last month, the publication released taste-test results that demonstrated store brands’ equality to national brands in eleven match-ups and superiority in three scenarios.  Read more...