This week Brandweek published a Private Brand story that included convenience store operators – 7-Eleven & Valero. They referenced much of the research that has been published in the last few month. Including the NPD Group report “Private Label Perceptions, Usage Patterns and Intentions” and the report from GfK Custom Research North America for the Private Label Manufacturers Association.
Private Label Programs Take Off
Recent research on a number of fronts all point in one direction: difficult economic times have bolstered the rollout and expansion of many retailers’ private label lines — including c-store operators.
According to The NPD Group’s “Private Label Perceptions, Usage Patterns and Intentions,” 24 percent of all food and beverages served in American homes last year were store brands, up from 18 percent in 1999. Today, 97 percent of all households consume private label foods on a regular basis.
“There is no question that private label foods have become an integral part of American life,” said Harry Balzer, chief industry analyst at NPD and author of “Eating Patterns in America.” He added: “Furthermore, we do not hide private label foods as an ingredient or as an additive to another dish. Today over half of all store brand food eatings are the end dish.”
Price and value are the chief reasons consumers purchase private label or store brands, according to an NPD survey of grocery shoppers. Most respondents, however, also feel the quality of store brands is often equal to, or in some cases better than, name brands. Users of private label foods and beverages span all income levels and demographic profiles, according to the report.
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