Mintel: Private Label Earns Quality Reputation

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January 25, 2011

Retailers’ efforts to introduce premium and healthier store brands in more attractive packaging for more affordable prices is paying off.

Forty-four percent of grocery shoppers believe store brand products are of better quality today than they were five years ago, according to new Mintel research.

In fact, 39 percent of respondents who identified themselves as the primary grocery shopper of their household said they would recommend a store brand product, and 34 percent said they don’t feel like they’re giving anything up (such as flavor or prestige) by using store brands, Mintel reported.

Only 19 percent believe it’s worth paying more for a national brand product, the research found.

“With the exceptions of drinks and personal care products, most consumers believe that private label options are of equal quality to nationally-branded products,” said Fiona O’Donnell, senior analyst at Mintel. “The lack of perceived difference can be attributed, in part, to the fact that many retailers have introduced premium private label products in recent years that rival their branded counterparts in flavor and nutritional value, as well as the packaging design and shelf placement.”

In fact, 62 percent of consumers believe there’s no difference in quality between name brand and store brand dairy products. Similarly, 61 percent said there is no difference when it comes to canned or shelf-stable food products, and 56 percent think private label and name brand household cleaners are of equal quality.

“Private label brands are overcoming the stigma once associated with ‘generic’ products,” O’Donnell added. “Even though the recession has ended, and consumers may be in a better position financially to return to name brands, it’s likely that many will continue to buy store brand staples that are of equal quality.”

Sixty percent of primary grocery shoppers usually or sometimes purchase private label bread or baked goods and 58 percent usually or sometimes purchase store brand cheese, according to Mintel.

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