No one can deny that private label continues to make a significant impact on the retail environment. An improved perception among consumers is driving sales as more people discover the quality and value proposition of private brands. Retailers are aiming for higher penetration and are re-focusing efforts on private label programs. Across the store there are categories where private label claims a significant share. In some areas, private label brands are outpacing the growth of national brands.

According to Chicago-based Information Resources Inc., a number of areas across food, beverage and non-food are dominated by private label. Dozens carry the distinction of claiming more than 33 percent share of their respective categories or subcategories.

IRI data shows a large number of areas where private label accounts for more than one-third dollar share of type. Share of type represents the context of private label within a particular subcategory and can be extremely telling. Private label maraschino cherries, for example, represent 76.9 percent of the subcategory, which is a $44.3-million category. While private label in the entire baking needs category — a $1,137.3-million business — only accounts for 16.4 percent dollar share or $186 million, maraschino cherries dominate their small, but mighty, subcategory.

Private label frozen carrots account for 74.3 percent of the subcategory, generating almost $30 million in sales. Private label refrigerated grated cheese — a $55-million business – claims 63.8 percent share. As a total category, natural cheese brings in about $5.6 billion with private label representing 39.1 percent share or $2.2 billion.

In non-food, private label is also making an impact at retail by owning large portions of certain categories. Private label paper bags are 79.5 percent of the subcategory, with private label food and trash bags claiming 34.5 percent share of the total category.

A handful of categories rang in sales last year resulting in double-digit increases. Private label refrigerated non-dairy toppings increased 25.7 percent to $6.2 million. In the chilled case, private label natural cheese (not shredded) reached $1,140.4 million, up 14.1 percent, and refrigerated fresh eggs reached $1,919.2 million, up 16.2 percent.

On the shelf-stable side, private label canned/bottled mushrooms increased sales 11.3 percent to $102 million, and shelf-stable honey surged 28.6 percent, outpacing the overall subcategory by 10 percent.

In the freezer, private label frozen carrots grew 53 percent to almost $30 million, and private label frozen fish and seafood increased 16.4 percent to $655.9 million, doubling the growth of the total category. PLB