“Just food” the food information and insight websight presents this management brief, much of it is built from existing research from GFK, PLMA, Booze & Company and Planet Retail, however there are some insights from food marketing customer service expert Dr Richard George as well as a high level overview of European and Indian Private Brand.
The just-food management briefing – private label
The economic downturn has led consumers to turn to private label for greater value. Own label has been a significant sector in Europe for decades but US consumers are now looking to store brands more regularly – and emerging markets are starting to catch on, too.
Private-label is a crucial tool for food retailers. Not only does it give retailers more control over costs and quality, it allows them to market their own brand whilst making sales.
The practice has been long-established in Europe and it is becoming increasingly popular in the US. “Today [in the US], approximately one out of every four food and beverage products in a supermarket is a private-label/store brand,” New Jersey, US-based food marketing customer service expert Dr Richard George tells just-food.
According to data from US trade body the Private Label Manufacturers Association (PLMA), private-label units were up by 6.4% for the year (2009) compared to a decline of 1.7% for national brands.”
The statistics clearly show that private-label is having no trouble gaining traction in the US food market. And although, the recession has helped drive private-label sales because they are considered good value, it is not the sole factor in their growth.