Private Label Brands Show Growth

November 10, 2010
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Shoppers’ desire to save money has been the amin driver behind rising private label sales in retail food stores, a study released this week by Food Marketing Institute says. Over the past five years, annual private label sales have increased by 34 percent to $55.5 billion in the supermarket segment alone, the study estimates.

Private Label meets the needs of the value shopper, by offering a unique point of differentiation to the retailer, the study explains. Nearly 98 percent of retailers carry private label brands in their stores; of those companies, about three quarters have multiple tiers within private label brands, often value, core and upscale offerings.


Private brands represent a higher percentage of total sales at an average of 15.7 percent. This is up from 14.3 percent in 2009 and will likely continue to grow over the next few years. Between 2008 and 2009, the average growth of private brand product sales far exceeded that of national brand items at 10.5 percent more than 1.6 percent.

Additionally 72.6 percent of retailers say their 2009 private brand growth rate was higher than the year prior, indicating accelerated consumer adoption of the category.

Look for more in-depth coverage of the FMI study in next week’s PL Buyer eReport newsletter.

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