Of Good News — and Bad News

Yikes, is it November already? You know what that means — it’s time for the PLMA’s Private Label Trade Show. And inside this issue, PL Buyer takes a sneak peak at some of the best new products to be unveiled at this year’s show. (We hope to see you at the show!)
But November also is the perfect time to take a look back at a year that soon will be over.
What a year! We weathered hurricanes (even Canada!), saw gas prices swell and housing prices tumble, and watched financial giants (and our 401ks) fall. We chose a new U.S. president and a new Canadian government (although this issue went to print before the results were in).
For many of you, 2008 also might be remembered as a “good news/bad news” year — both in terms of private label and retail in general. I’ll share with you a few highlights:
The good news: In the face of an uncertain economy and rising consumer packaged goods (CPG) prices, consumers increasingly turned to private label offerings to help make ends meet. Suddenly store brands enjoyed a flood of newspaper and TV coverage.
The bad news: The media widely reported consumers’ move to private label as “trading down,” a phrase that virtually screams “lesser quality.” Ouch.
The good news: A number of new national brand and private label food offerings promised a “restaurant-quality” experience — potentially enhancing overall consumer perception of processed prepared foods.
The bad news: These brands aren’t telling us which restaurant they’re attempting to match in quality — the highly-rated French Laundry or Big Al’s Diner?
The good news: Many retailers did away with — or put programs into place to discourage the use of — those environmentally unfriendly plastic shopping bags. In their place? Reusable canvas bags inscribed with each retailer’s name.
The bad news: This move presents an etiquette-related dilemma: Is it appropriate to bring one retailer’s canvas bag into another’s — a competitor’s — store (e.g., a Jewel-Osco bag into my local Dominick’s, or visa versa)? Is it more acceptable if the bag is transported across channel lines?
The good news: More CPG packaging companies focused on the environment, introducing containers fashioned from renewable materials or less material, as well as packaging that is recyclable or made from recycled materials.
The bad news: A recent survey performed by Chapel Hill, N.C.-based Yankelovich Inc. found that consumers continue to be interested in the environment, green behaviors and green lifestyles, but fewer (compared to last year) are willing to pay more for greener products.
I’m sure many of you could share a good news/bad news scenario of your own to augment this brief list (and we still have December to go!). But as you look forward to the PLMA show and the holiday season (let’s hope a more lucrative one than the experts predict), I would instead like to make an optimistic toast:
Here’s to more good news than bad news in the final days of 2008!