Consumer Reports: Private Label Rivals National Brands

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September 8, 2010

Store brand products can compete with national brands and save shoppers more than a thousand dollars a year on groceries, according to a new study from Consumer Reports.

In 21 head-to-head taste match-ups store brand came out on top in three instances and tied 11 times versus national brands that came out on top in seven match-ups, Consumer Reports published in its October 2010 issue.

"The study reaffirms that store brands are worth a try," said Tod Marks, senior projects editor for Consumer Reports. "For a family that spends $100 a week on groceries, the savings could add up to more than $1,500 a year."

Consumer Reports' price study evaluated five supermarket chains and compared store brand and national brand prices for 30 everyday items at five chains, collecting a total of 283 price quotes. Consumer Reports found the average savings with store brands was 30 percent, but shoppers saved as much as 52 percent on some items.

Although the savings are significant, some shoppers are still reluctant to try store-brand products, according to a Consumer Reports nationally represented survey. The top reasons for those who don't buy store brands are: "I prefer name brands," "The name brand tastes better," and "I don't know if store brands are as high in quality." Respondents between the ages of 18 and 39 years were particularly likely to question the quality of store brands, according to Consumer Reports.

Still, 84 percent of Americans purchased store brands in the past year, and 93 percent of store brand shoppers said they would keep buying as many store brands after the economy recovers. Nationwide, store brands accounted for almost one of four products sold in supermarkets and a record $55.5 billion in sales last year, according to Consumer Reports.

Despite the perception among 17 percent of survey respondents who said "name-brand foods are more nutritious,” Consumer Reports found nutrition similar for most of the tested products.

Shoppers are devoted to certain categories as well. Though they'll purchase store brand paper goods and plastics, at least half of respondents rarely or never buy store brand wine, pet food, soda or soup.

Testers Choice
But Consumer Reports trained testers found that when it came to products such as soup, juice and hot dogs, the name brand didn't always reign:

• Food Lion's (36 cents per serving) Lotsa' Noodles soup beat out Campbell's Chicken Noodle (41 cents per serving) for having a little more intense flavor. “Campbell's had oily broth, with fatty pieces of chicken.”
• Publix Premium Orange Juice won over Tropicana for having “a bit less of a cooked flavor with slightly less bitter taste.”
• America's Choice (A&P, $2.64 per package) beef hot dogs trumped Oscar Mayer ($3.65 per package) for their juicy and flavorful franks.

National brands won in seven categories, including mayonnaise, mozzarella cheese, and frozen French fries.

But the majority of the match-ups found that the store brand and national brand were of similar quality, although a tie doesn't mean the taste was identical. “Two products may be equally fresh and flavorful, with ingredients of similar quality, but taste dissimilar because the recipe or seasonings differ,” according to a Consumer Reports statement.

Some products that tied include:

• Ketchup: Heinz ($2.76 per bottle) is spicier, while Target's Market Pantry ($1.174 per bottle) brand is “more tomatoey.”
• Peanut butter: Tasters detected more deeply roasted nuts in Skippy (19 cents per serving), while Albertsons (15 cents per serving) has “a hint of molasses flavor.”
• Potato chips: Both Lays (29 cents per serving) and Walmart's Great Value (15 cents per serving) have a “nice balance of real potato flavor, fat and saltiness.”

Read These Related Articles:

• Research: The New Path to Purchase
• Study: Post-Recession Shoppers Stay True to Store Brands
• Mintel: U.S. Food Innovation Declines During the Recession
• Research: Household Products Brands Under Attack as Consumers Still Fixate on Price
• Citigroup: National Brands Gained Share From Store Brands in August

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