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July 2009 Articles
July 29, 2009
Nielsen on the Global Future of Store Brands
David Calhoun, Nielsen's CEO, identified the dynamics driving global store brands growth and weighed in on who he thinks will win the battle between store brands and national brands. Also, view a video clip from his recent presentation at the CIES World Food Business Summit in New York City.
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July 29, 2009
Wal-Mart's Great Value Beats Out H-E-B and Randalls in a Store Brands Taste Test
A blind store brands taste test -- conducted amnog 14 everyday items in three of the biggest Central Texas grocery retailers -- gave Wal-Mart's Great Value brands six wins, while Randalls won five product reviews and H-E-B won three.
Source: Austin360.com
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July 29, 2009
Safeway and Supervalu Fuel Store Brand Growth in Organic Food
Store brand organic foods account for 22.7 percent of total organic food sales today, up from 13.6 percent for the same 52-week period in 2007, spurred in large part by Safeway's O Organics line, which it also is marketing to other retailers, and Supervalu's Wild Harvest, which has doubled SKUs since last spring.
Source: Wall Street Journal
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July 29, 2009
Store Brand Product Innovation and Market Share Reach New Highs
Providing more than just cheap alternatives to national brands, the newest private label foods woo shoppers with premium ingredients, portability and health benefits. So far in 2009, Mintel GNPD has counted 1,800 new U.S. private label foods on retail store shelves, which accounts for 27 percent of all food products introduced this year.
Continue Reading »Source: Mintel
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July 29, 2009
Store Brand Buying Behavior More Important Than What Consumers Say They Do
Nielsen consumer insights expert Todd Hale says private label has a somewhat universal appeal across all income groups, but households with incomes between $50,000 and $99,999 show the greatest positive variance from expected levels.
Continue Reading »Source: Nielsen Wire
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July 29, 2009
Sainsbury Launches Non-Food Product Line on the Web
J Sainsbury Plc launched its long-awaited non-foods line of products online, which is expected to help the retailer increase its share in the U.K. general merchandise category. To start, the chain is offering 4,500 items -- a combination of store brands and national brands -- which is expected to nearly double by fall.
Continue Reading »Source: Reuters
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July 29, 2009
Are New Value Brands a Diversion?
Several retailers are diverging from the traditional three-tier store brands segmentation, adding new discount and value lines, but Tom Stephens, founder of Brand Strategy Consultants, believes it is more a consumer diversion than a sound business strategy.
Continue Reading »Source: Private Label Buyer
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July 22, 2009
Wal-Mart to Sell Marketside Branded Foods at Its Discount Stores
Wal-Mart Stores Inc. is testing in some of its U.S. discount stores the sale of Marketside branded foods, which were originally developed for the discounter's upscale small-format fresh prepared food concept. Last year, Wal-Mart opened six Marketside stores in the Phoenix area in response to Tesco's Fresh & Easy Neighborhood Market roll out on the West Coast.
Source: Reuters
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July 22, 2009
Food Lion Promotes Brands With Online Sweepstakes
Food Lion launches its "Private Brand Stock Your Pantry" online promotion through Aug. 6, which offers shoppers a chance to win up to $200 in private-label products, as well as online coupons.
Source: Supermarket News
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July 22, 2009
Store Brands Help Boost Weis Markets' Net Income 18.5 percent
Weis Markets, operator of 154 grocery stores in five Mid-Atlantic states, posted a significant rise in second quarter net income due to the depth and breadth of its store brands, according to CEO David J. Hepfinger
Continue Reading »Source: Press Connects
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July 22, 2009
Aldi and Lidl Take Top Honors for Best Olive Oil
Food experts in the U.K. say budget superstores Lidl and Aldi have the best extra virgin oils, which taste better than top-selling brands that cost twice as much, including Bertoli, Napolina and Filippo Berio.
Continue Reading »Source: The Daily Mirror
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July 22, 2009
Study Proves Considerable Shifts in Brand Loyalty During the Recession
Approximately 40 percent of grocery shoppers report trading to store brands since the recession began, while 29 percent say they still prefer name brands even if they cost more than store brands, according to research by Digital Research Inc., which includes analytics by ThinkVine. The new study also provides insights on which food and beverage categories are proving most and least susceptible to "brand abandonment," and which consumer segments have been most and least affected.
Continue Reading »Source: Media Post News, Marketing Daily
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July 22, 2009
Campbell Overhauls Chunky Soup to Compete Against Store Brands and Progresso
To spark lackluster sales, Campbell Soup Co. plans to emphasize the health benefits of its Chunky soup brand as well as cut the sodium content its best-selling condensed tomato soup to better position against cheaper store brands and Progresso.
Continue Reading »Source: Reuters
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July 22, 2009
Daymon Worldwide Named Top 10 Employee-Owned Company
The National Center for Employee Ownership has named Daymon Worldwide one of the top employee-owned companies in the United States. The employer of more than 17,000 worldwide, was ranked ninth out of 100 by the Oakland, Calif.-based organization.
Continue Reading »Source: The Advocate
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July 15, 2009
Nielsen Forecasts Long Growth Pattern in U.S. Store Brands
Future growth hinges on success in four key areas if retailers want to continue taking share from top national brands, according to John J. Lewis, of The Nielsen Co.
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July 15, 2009
CPG Giants Use Social Media to Exploit Niche Markets
Targeted social media and sophisticated direct marketing techniques are helping CPG companies become more flexible and develop products that do not have mass-appeal, a past prerequisite. New marketing techniques are enabling companies such as General Mills to develop products aimed at small population segments, such as the gluten-free market, a niche it would have dismissed in the past as too small to target profitably.
Continue Reading »Source: Advertising Age
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July 15, 2009
Store Brand Savings Still Beat Aggressive CPG Discounting
The latest market basket research by the Private Label Manufacturers Association documents that shoppers can still lop 30 percent off their grocery bill by purchasing store brand products in their weekly trips to the supermarket, despite aggressive national brand discounting and couponing.
Continue Reading »Source: Private Label Manufacturers Association
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July 15, 2009
Store Brand Competition Takes A Bite Out of J&J Profit
Johnson & Johnson blames its 3.5 percent second-quarter profit decline on store brand competition, the global recession and the weak dollar. Some of the categories hit hardest include pharmaceuticals as well feminine hygiene, home pregnancy tests and nutritional products, according to Chief Financial Officer Dominic Caruso.
Continue Reading »Source: The Associated Press
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July 15, 2009
Consumers Not as Willing to Switch to Store Brands for Kids and Pet Products
American consumers have switched from national brands to store brands for food, household, health and personal care products but are far more reluctant to switch to store brands on purchases for children and pets, according to a survey of 1,530 shoppers by ICOM, a division of Dallas-based Epsilon Targeting.
Continue Reading »Source: Epsilon Targeting
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July 15, 2009
Sam's Club and Walgreen's Outperform Perrier and San Pelegrino on Bottled Water Labeling
An Environmental Working Group investigation of nealry 200 popular bottled water brands found that less than 2 percent disclose the water's source, how the water has been purified and what chemical pollutants each bottle of water may contain. Sam's Club and Walgreen's bottled waters scored relatively well compared to national brands, while Perrier, San Pelegrino and Whole Foods' store brand failed the EWG test.
Continue Reading »Source: Environmental Working Group
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July 15, 2009
Store Brands Take Off in Convenience Stores
Difficult economic times put wind behind the rollout and expansion of several convenience store chain's store brands, including 7-Eleven, which now has 200 7-Select products in nearly every in-store category, and Valero Inc., whose Fresh Choices brand focuses on beverages and snacks.
Continue Reading »Source: Convenience Store News
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July 8, 2009
Meijer and Kroger Forecast Double-Digit Store Brand Growth
Growth is less about store brands versus national brands, and more about delivering high quality products that smart consumers need, according to a panel of experts at a recent industry event.
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July 8, 2009
Consumer Insights are the Key to Store Brand Innovation
Harris Teeter and Wegmans are two examples of how retailers need to master consumer insights if they want to develop relevant store brands positioned to become products of choice, according to Andres Siefken, a marketing executive at Daymon Worldwide.
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July 8, 2009
After Big Gains, Store Brand Growth Moderates
This report indicates that store brands may be "losing some steam" after realizing tremendous market share gains this past year at the expense of national brands. While acknowledging that store brands continue to grow steadily, it is not at "recent breakneck speed." The report predicts that a "moderation in private label's growth rate could reduce some pressures on branded goods." We at Store Brands Decisions believe that is highly unlikely.
Continue Reading »Source: CNN Money
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July 8, 2009
P&G Plans To Test Cheaper Version Of Tide Brand
Hurt by consumers switching to less expensive brands, especially during the recession, Procter & Gamble Co. said it plans to test a cheaper brand extension called Tide Basic, which will cost 20 percent less than the standard product, in 100 Kroger and Wal-Mart stores.
Continue Reading »Source: CNN Money
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July 8, 2009
Kroger Recalls Store Brand Beef Supplied by JBS Swift Beef Co.
Kroger has recalled store brand beef from stores in its central division supplied by JBS Swift Beef Co., due to possible E.coli bacteria contamination. The grocer said it has stopped selling the recalled brands altogether.
Continue Reading »Source: Journal Gazette
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July 8, 2009
Kmart Offers Michigan Unemployed Discounts on Store Brands
Kmart is offering unemployed Michigan residents a 20 percent discount on regularly priced store brand groceries and drug store merchandise. Qualified customers will be issued a Smart Assist savings card to qualify for the discounts on purchases.
Continue Reading »Source: mLive.com
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July 8, 2009
Nielsen: Supermarket Prices Still Creeping Up, While Store Brands Decline
U.S. retail grocery prices continue to creep higher compared with 2008, although at a slower rate, according to new research from The Nielsen Company. Private label, however, continues to decline with average prices for store brands down 4.7 percent versus last year.
Continue Reading »Source: Progressive Grocer
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July 8, 2009
H.J. Heinz Boost Marketing to Counter Store Brand Gains
Trying to counter sales declines as consumers have been trading to less-expensive store brands, H.J. Heinz Co., which reported a 10 percent decline in profit this past fiscal quarter, said it plans to boost marketing and limit price discounts on its ketchup and sauces.
Continue Reading »Source: Courier-Journal
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July 8, 2009
Taking the 'Ritz' out of Ritz Crackers
One observant blogger shopping at Target recently noticed that Ritz Crackers has downscaled the packaging of its "premium brand to look more store brand-y." Kraft Foods, maker of Ritz Crackers, received stern remarks for charging the same price on its downscaled Ritz as it does for the more premium product.
Continue Reading »Source: Sturdy Roots Blog
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Featured PLMA Innovation Hall Exhibitors
Store Brands Research
IRI: Baby Boomers to Yield $50 Billion Growth for Private Label and Healthy Lines
The latest IRI research, "Baby Boomers II: Preparing for the Upcoming Wave of Aging Shopper Growth," reveals that store brand spending increases with age. The study examines baby boomer lifestyle changes and identifies top-indexing food and non-food categories, recession-driven shopping patterns and key opportunities for private label and health and wellness products. "Many retailer strategies today assume that boomers are a homogeneous group, and, as a result, their strategies are too general to be effective," said Thom Blischok, president of IRI Consulting & Innovation.
Source: IRI
Better-for-You Foods to Grow Significantly Over the Next Decade
In its new report, "A Look into The Future of Eating," The NPD Group forecasts that better-for-you foods -- such as organic and light or low-calorie foods and beverages -- will be among the fastest growing food trends over the next decade.
Source: The NPD Group
Private Label Trends - Update 2009
This special update to the Private Label Trends Worldwide report addresses the acceleration of private labels as the retailers respond to the current economic downturn.
Source: Research and Markets Ltd.
Press Releases
Chris Silva Promoted to President, Morningstar Division of Dean Foods
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GFSI Successfully Benchmarks the GlobalG.A.P Aquaculture and Livestock Schemes
Source: GFSI
The Global Food Safety Initiative (GFSI) Announces New Board Chairman
Source: Global Food Safety Initiative
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Industry Resources
Private Label Manufacturers Association
National Association of Convenience Stores
American Wholesale Marketers Association
National Association of Chain Drug Stores
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