Private Brand is everywhere and the major trade magazines seem to be no exception, Advertising Age seems to regularly include articles about Private Brand. The article below features the NPD report I published earlier as well as comments from Bill Schober, editorial director of the In-Store Marketing Institute.
Don’t Blame Private-Label Gains on the Recession
No-Names Brands Have Been Picking up Momentum for Past Decade Across Demographics
By Emily Bryson York
CHICAGO (AdAge.com) — Private label growth didn’t start gaining momentum in the downturn.
Not only have private label brands been gaining share for the past decade, experts say these gains are the single-biggest problem facing branded packaged goods players. House brands, once a staple of lower-income households, now enjoy roughly equal penetration among demographic segments. Improvements in quality and packaging have helped removed the stigma attached to buying a no-name product.
According to an NPD study released today, house brands now make up 24% of all food and beverages served in U.S. homes, up from 18% in 1999. Stripping away beverages, private label accounts for roughly 30% of all food served in U.S. homes. And 97% of households purchase unbranded products from time to time.
“This is a trend, but not just because of economic difficulties,” said Harry Balzer, chief industry analyst at the Port Washington, N.Y.-based research firm. He said that private-label consumption appeared flat over the past year. Survey participants told NPD that they chose private labels because of price and value, but many also felt the quality is similar — if not superior to — name-branded products.