Organic, Natural Gains Ground In Private Label

Manufacturers and retailers have tried to address consumer concerns about wellness and nutrition with more affordable healthy food options, and several retailers have built private label brands around a position of affordable healthy eating.

Food Business News
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The emergence of such brands as Kroger’s Simple Truth, Supervalu’s Wild Harvest and Aldi’s Simply Nature highlight how the private label category is evolving, according to Food Business News. Manufacturers and retailers have tried to address consumer concerns about wellness and nutrition with more affordable healthy food options, and several retailers have built private label brands around a position of affordable healthy eating.

“Store brands have moved far beyond cheap generic knock-offs to become trusted, quality lines that can compete effectively with national brands,” said David Sprinkle, research director for Packaged Facts. “They usually have higher profit margins for retailers than name brands, help differentiate a retailer from competition, and help build consumer loyalty.”

Private label accounted for almost a fifth of the $530 billion total food and beverage market dollar sales in 2013. In its report “Private label foods & beverages in the U.S., 8h edition,” Packaged Facts estimated retail dollar sales of private label food and beverages were $102 billion in 2013, up about 2 percent. Food products accounted for approximately 80% of the private label segment’s sales.

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