Private Brand Sales Outpace National Brands – PLMA’s 2013 Private Label Yearbook

2013 PLMA YEarbookPrivate Brands at supermarkets, drug and mass merchandise enjoyed another record ring at the checkout in 2012, according to PLMA’s 2013 Private Label Yearbook. Across the major retailing outlets, store brands sales increased +2.9%, pushing annual revenues up $3 billion to a total north of $108 billion, an all-time record.

The key industry statistics for Private Brand’s market share stood at 23.1% of all units sold in U.S. supermarkets, and 19.1% of all dollar sales. The comparable figures in drug chains were 16.6% for unit market share and 15.9% for dollar share. Across all retail outlets – consisting of U.S. supermarkets with annual sales over $2 million; drug chains with sales over $1 million; the mass merchandiser channel including Walmart, club channel, dollar stores and military exchanges – private label unit market share came to 21% and dollar share was 17.3%.

The PLMA Yearbook utilizes data provided by The Nielsen Company for the 52 weeks ending December 22, 2012. Looking back over the four-year period from 2009 to the present, store brands on average have recorded sales gains of +4.9% annually, as compared to average year-to- year growth of +2.1% for national brands. Since 2009, store brands have contributed mightily to real sales gains across the combined retail channels as measured by Nielsen, accounting for 32% of all gains in volume and virtually 100% of unit gains.

In supermarkets, Private Brand sales set a new record in 2012 despite slow growth overall for all brands. Private label sales volume edged up +0.1% over the prior year, generating an additional $73 million and achieving an all-time high of $59 billion in sales. Over a four-year period from 2009 to the present, store brands sales in the channel have increased at an average annual rate of +2.6%, compared to an average gain of +0.9% annually for national brands. Fully 40% of all sales gains in supermarkets during that period has been attributable to store brands.

In drug chains, 2012 was a year of robust growth for store brands, which expanded sales volume by +5.5%. The $410 million increase attributable to the products pushed total private label sales to a record $8 billion and accounted for 59% of incremental revenue for the channel as a whole. Store brands sales in drug chains have gained +5.4% on average, year-over-year, from 2009 to the present. This compares to an average gain of +2.2% annually for national brands. National brands sales increased only +0.7% in 2012. Consequently, store brands dollar market share in the channel rose sharply to 15.9%, a record high.

By referring to PLMA’s Private Label Yearbook, store brands growth can be examined and tracked category by category. “That’s where important changes in consumer acceptance of store brands are taking place,” notes PLMA President Brian Sharoff. “Beyond total volume or total sales, the data can help identify where additional store brands penetration is possible. It can give insight into new business opportunities. It can serve as a benchmark for a company’s strategy and accomplishments.”

The annual publication has grown over the years from fewer than 200 product categories to more than 700 today, covering foods, snacks and beverages; health and beauty; and household products of all types

Looking back over the four-year period from 2009 to the present, store brands on average have recorded sales gains of +4.9% annually, as compared to average year-to- year growth of +2.1% for national brands. Since 2009, store brands have contributed mightily to real sales gains across the combined retail channels as measured by Nielsen, accounting for 32% of all gains in volume and virtually 100% of unit gains.Private Brand Market Share

In supermarkets, store brands sales set a new record in 2012 despite slow growth overall for all brands. Private label sales volume edged up +0.1% over the prior year, generating an additional $73 million and achieving an all-time high of $59 billion in sales. Over a four-year period from 2009 to the present, store brands sales in the channel have increased at an average annual rate of +2.6%, compared to an average gain of +0.9% annually for national brands. Fully 40% of all sales gains in supermarkets during that period has been attributable to store brands.

In drug chains, 2012 was a year of robust growth for store brands, which expanded sales volume by +5.5%. The $410 million increase attributable to the products pushed total private label sales to a record $8 billion and accounted for 59% of incremental revenue for the channel as a whole. Store brands sales in drug chains have gained +5.4% on average, year-over-year, from 2009 to the present. This compares to an average gain of +2.2% annually for national brands. National brands sales increased only +0.7% in 2012. Consequently, store brands dollar market share in the channel rose sharply to 15.9%, a record high.

By referring to PLMA’s Private Label Yearbook, store brands growth can be examined and tracked category by category. “That’s where important changes in consumer acceptance of store brands are taking place,” notes PLMA President Brian Sharoff. “Beyond total volume or total sales, the data can help identify where additional store brands penetration is possible. It can give insight into new business opportunities. It can serve as a benchmark for a company’s strategy and accomplishments.”

The annual publication has grown over the years from fewer than 200 product categories to more than 700 today, covering foods, snacks and beverages; health and beauty; and household products of all types.

PLMA’s 2013 Private Label Yearbook is free of charge to member manufacturers, retailers and wholesalers. To request a copy, email research@plma.com.

 



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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.