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Nutrition Claims on Store Brand Products Rise

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February 9, 2010

nielsen logoAs shoppers seek healthier food alternatives, retailers are developing more store brand products that carrying health claims such as genetically modified organism (GMO) free, gluten free and the absence of certain fats, according to an article written by Nielsen’s Tom Pirovano.

“Store brands now comprise almost 40 percent of products with preservative claims, one-fourth of organic product sales, and nearly one-fifth of all products with natural and fat claims in food/drug/mass merchandise retailers,” Priovano wrote.

Grocers have been quick to launch certified organic products with their own store brands, and natural food stores are focusing on items that deliver natural product benefits and full flavor under a familiar retail banner.

“The success of Topco’s Full Circle line encompassing more than 1,000 products in 90 categories, the 300 “O” Organics products and 200 Eating Right items [from Safeway] speak to the potential of retailer brands throughout the store,” Pirovano wrote. “More categories are soon to follow, based on the recent announcement that Sam’s Club plans on launching a private label Rue 33 premium French vodka, likely inspired by the success of rival Costco’s Kirkland label of vodka, scotch, tequila, wines and beer.”

One area that store brands lag is in developing products claiming they are free high fructose corn syrup, he said, adding that retailers are taking “a wait-and-see attitude.”

 

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