National brands continue to advertise their value all the while paying slotting fee’ to their competitors? Is it just me or does that sound like a business model in need of repair? Today Grocery store shoppers can save up 38% buying store brands a new study found. If we all harkin back to the days when grocery stores introduced private label products we can remember the poor quality, poor packaging and pricing that drove trial. That was it. Ah how times have changed.
The recent economic malaise may have been one of the driving factors in trial of new private label products. The other might have been positive consumer response to Trader Joe’s unique private label products and industry leading sales per square foot $1,750+.
In a new study grocery store prices by Private Label Manufacturers Association (PLMA) reveals “shoppers on average could save 38% off their grocery bill by filling their winter shopping cart with the retailer’s store brands instead of their national brand counterparts.”
Trader Joe’s changed my mind on private label products. When Foodservice Solutions® Grocerant Guru conducted recent research on Ready-2-Eat and Heat-N-Eat fresh prepared products they found 74% of consumer could name a specific companies proprietary fresh prepared food by entity and specific identity if the retailer had branded fresh food products as well.
Today it appears that price, quality and branding issues are lessening for private label product both CPG and fresh prepared. What was once considered private label aka Trader Joe’s and i’s ilk is now consider branded in the minds-eye of the consumer. The battle it appears to be for share of stomach of fresh vs canned. Private label branding of fresh prepared food works. How many of you have had a 7 Eleven Slurpee? That’s branded fresh food success since 1965!
www.FoodserviceSolutions.us specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy. Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991