Save 30% By Purchasing Private Brands

This press release and corresponding research from the Private Label Manufacturers Association reaffirms what shoppers and retailers have known for many years, Private Brands are a great value and save money.

New Research Shows Consumers Can Save 30% Purchasing Store Brands

grocery-bagNEW YORK – New consumer research by the Private Label Manufacturers Association documents that shoppers can save about 30% off their grocery bill by purchasing store brand products on their weekly trips to the supermarket.

On a typical trip to a supermarket to buy 43 basic grocery and household items, the research indicates that consumers saved an average of $46.39, or more than 30% savings when compared to purchases of national brands in the same categories.

The products represented in the typical market basket included cereal, soda, pasta, orange juice and cookies, on the food side, and facial and bathroom tissue, cold and flu medications, dog food and aspirin among the non-foods. The top five products in the study found to have the largest gaps in pricing by percentage were aspirin, sinus spray, soda, saltine crackers and body lotion.

The price differential in soda, aspirin, sinus spray and lotion saved consumers between 50-60%, while items such as cereal and ice cream consumers saw savings of over 30%. Store brand frozen pizza had a price differential of 23%. Dog food saved shoppers 25% over competing brands. In total, 35 of the 43 food and non-food items PLMA examined saved consumers more than 20% off their grocery bills and nearly a quarter of the products saved shoppers over 40%.

Typical Store Brand vs. National Brand Market
Basket Comparison

PLMA Chart

* Prices shown reflect 8-week average for the period 1/2/2009 through 2/22/2009.

All prices are net after known discounts, coupons and/or promotions

PLMA’s 8-week price comparison research was conducted in a typical suburban supermarket located in the northeast. A market basket featuring 43 frequently purchased products from both food and non-food categories was used. A leading national brand product was compared to a similar store brand product in each category and prices were adjusted to account for all known discounts, coupons and promotions available for each of the weeks included in the study.

“Prices may vary from market to market, but the savings that consumers will achieve will follow the same pattern across the country,” said PLMA President Brian Sharoff.

The Private Label Manufacturers Association is the industry trade association devoted exclusively to store brands. Founded in 1979, PLMA today represents over 3,000 companies who are involved in the manufacture and distribution of store brand products. The products supplied by PLMA members include food, beverages, snacks, health and beauty aids, over-the-counter drugs, household cleaners and chemicals, outdoor and leisure products, auto aftercare and general merchandise.

The survey was conducted weekly during the 8-week period from January 2, 2009 through February 22, 2009.

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.