Mintel: Private Label Holding Strong Shares At Breakfast
A new report from Mintel Group Ltd. Shows that private label has a strong foothold in breakfast foods, competing against a highly fragmented national brand landscape.
The report, titled “Breakfast Foods – US, September 2012,” shows that private label holds a 19 percent share of breakfast foods sales in food, drug, and mass channels (excluding Walmart). Kellogg is the leading national brand at 13 percent share, with Kraft Foods (8 percent) and Smithfield Foods (6 percent) further behind.
Dollar sales in private label breakfast foods rose 4.3 percent from 2011, and the report had praise for the retailers in charge of brands.
“Retailers need to continue to maintain product quality while innovating to meet consumer needs,” it said, “focusing on healthful options, but not compromising on taste, while maintaining a competitive price.”
The report showed that many consumers continue to eat breakfast at restaurants on the weekend, and close to half said they would like more restaurant-like options at the grocery store.
“It is therefore a balancing act for breakfast foods manufacturers and retailers to satisfy multiple consumer needs, while facing fierce competition from foodservice, in a still-shaky economy where competitive pricing is key,” it said. “Therefore, while convenience and portability remain important attributes for the breakfast foods category, companies also need to continue to provide more healthful alternatives that would help consumers achieve their goals for a healthier lifestyle.”
Mintel also found that although a majority of respondents to its consumer research shopped at grocery stores for breakfast foods, but that 51 percent go to mass merchandisers, and 25 percent visit club stores.
“Better prices, coupled with an increase in food offerings, have attracted consumers to one-stop shops that also offer more affordable prices,” the report said. “Additionally, many retailers also have been focusing on improving private label products, thus directly competing with brands.”