Packaging / Market Trends

Shoppers aren’t shy with store-brand labels

January 10, 2014
/ Print / Reprints /
/ Text Size+

“A lot of people during the recession reluctantly bought private-label, got home and stated, 'This is not bad at all. Why am I paying more money?’” says John Stanton, Ph.D., a food marketing professor at St. Joseph's University in Philadelphia. “Consumers aren’t demanding the best. They are demanding good.”

Store-brand supermarket sales in the 12-month period ending Aug. 31 hit $111.6 billion, according to the Nielsen Co., a New York-based media and marketing information concern. The total was up 18.5% from 2009. National-brand sales grew 8% during the same span, Nielsen reports.

Several trends contribute to the increased popularity of grocery products that used to be called “generic”:

  • Many consumers who turned to more frugal spending habits during the recession stayed in the neighborhood.
  • Food prices have risen faster than wages. At-home food expenses advanced by 14.5% from 2008 through 2012, U.S. Labor Department statistics show. Average incomes increased 9.9% over the same period, government data indicate.
  • Grocery retailers are splurging to generate better house-branded products that cost less than branded items.

“We have our own quality-control lab and put a lot of effort into developing and improve the private brand products we sell,” states Dennis Curtin, spokesman for Weis Markets Inc., based in Sunbury, Pa. Weis operates 10 stores in Pennsylvania’s Lackawanna and Luzerne counties.

“The quality has improved in the store brand so much that it’s like national-brand quality,” says Rocco Riccardo, president of Riccardo’s Market, a ShurSave affiliate in Dunmore, Pa.


Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.



Image Galleries

2014: State of the Industry Reports

Our State of the Industry Report images on the Snack Market are here.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 July

July's issue of Snack Food & Wholesale Bakery features a special look at the chips market and industry, as well as an Editor's Note on snacking substantially.

Table Of Contents Subscribe

Mintel Research

New Mintel research reveals that sales of frozen and refrigerated cakes and pies declined 2009-14. Which do you prefer:
View Results Poll Archive


Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!


Facebook IconTwitter IconYoutube IconLinkedIn Icon