This article from Packaging Digest, presents a remarkable perspective on the growth of Private Brands in beverage categories. These are categories that have traditionally been dominated by the soda demigods, Coke and Pepsi, however when you introduce markets outside the US and expand from soda to beverages the outlook for Private Brand growth is promising.
Private label beverages rise in weak economy
Soft drink market shifts increasingly to private brands, challenge major brands.
According to a new report from beverage research agency Canadean, the global economic downturn is providing the perfect conditions for private label products to flourish. Private label products in the total soft drinks sector now account for over 1 in every 10 liters sold in the global marketplace. Factoring in discounts for the on-premise sector — where private label use is marginal — then private label’s share of the market rises yet further. The rise of private label is proving to be a considerable threat to branded soft drinks.
The dramatic financial turbulence of recent times has undoubtedly provided a major opportunity for private label. Apart from the obvious factor that consumers are more inclined to seek out the value that private label products represent in a downturn, there has been another factor that has boosted the private label segment; the shift from on- to off-premise sales. In many markets the footfall in bars and restaurants has fallen back sharply but consumers are compensating for this by drinking more at home and buying soft drinks in the off-premise, where the bulk of private label products are found.