Private Label Produce Gains Ground

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January 4, 2011

Private label produce accounted for a totaled of $2.8 billion, up 13 percent compared to a year ago and expectations are for the category to continue to grow in 2011, according to the United Fresh Foundation. On average, grocers in 2010 offered 37 SKUs of private label vegetables, up 23 percent compared to 2009.

Jon Holder, senior manager of produce and floral for Raley’s Supermarkets in Sacramento, Calif., told The Packer that private label produce will continue to grow as consumer become more accustomed to store brand offers in the category. “It is a focus of ours right now,” Holder said, noting that bagged produce presents the largest opportunity for sales growth.

Retail consultant Ed Odron, of Odron Produce Marketing & Consulting in Stockton, Calif., told The Packer that stores with strong banners have the best results with private label produce, and “I think private-label is going to continue to grow in the produce department.”

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