Are Private Brand Sales Slowing?

This article from CNN Money, shows the interesting media shift, as they begin to spin the numbers to tell a story of slowing Private Brand. Strangely enough, if the same numbers were reported by a CPG they would be heralded as record growth.

Only time will tell how the recent upswing of Private Brand will fare in an improved economy, but I feel certain a significant portion of the gains will be retained.

After A Big Surge, Some Moderation In Private Label Gains
NEW YORK -(Dow Jones)- After grabbing market share at a speedy rate from the big national brands, private-label goods are losing some steam.

These cheaper retailer brands are still growing well, but their advance has slowed somewhat from their recent breakneck speed.

As private labels gained share during the downturn, investors turned jittery about the prospects for the big household brand names. One of the biggest concerns had been the possibility of sharp price cuts. A moderation in private label’s growth rate could reduce some of the pressures on branded goods.

The trend could also be a slim sign that consumer fears are easing. “That abating negative sentiment is helping the branded part of the grocery store,” said Edward Jones analyst Matt Arnold.

The changes in private-label penetration vary in different categories. A UBS analysis of about 10 different packaged food categories like ketchup and cheese found that in the four weeks ended May 16, private label’s market share grew at an average 11%, a drop from the 21% growth those off-brand products saw at their peak around February.

Read the entire story: After A Big Surge, Some Moderation In Private Label Gains



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Christopher Durham
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.