For
decades, “private label” food products—also known as store brands—were
considered the affordable, no-frills alternative to big national names like
Heinz, Campbell’s Soup, Folgers, or Jif. They were the economic choice, not the
emotional one. But in 2025, the tables have turned. What was once “generic” has
become genuinely powerful: private label foods are now brands of their own—with
loyal followings, elevated quality, and cultural cachet according to Steven Johnson Grocerant Guru® at
Tacoma, WA based Foodservice Solutions®.
The Historical Shift: From Knockoff to Knockout
Private
label products first gained momentum in the 1970s and 1980s during economic
downturns, when consumers sought ways to stretch grocery budgets. Back then,
they were packaged plainly and marketed purely on price. The appeal was value,
not flavor, not quality, and certainly not experience.
But
in the past 15 years—particularly after the 2008 recession, the COVID-19
pandemic, and the inflation spikes of the early 2020s—consumers redefined what value
means. It’s no longer just about price; it’s about trust, taste, and
transparency. Store brands evolved with that shift, becoming culinary and
lifestyle statements.
Today,
private label accounts for nearly one in five grocery dollars in the U.S.,
and in some retailers like Trader Joe’s, that share soars above 80%. The power
dynamic has flipped: national brands now chase the authenticity that once
defined them, while retailers have built ecosystems of taste, convenience, and
community around their own names.
Trader Joe’s: Cult Classics in Every Aisle
Trader
Joe’s pioneered private label emotional branding. More than 80% of its products
are private label, but few shoppers even realize it—they simply know they love Trader
Joe’s food.
Four
standouts:
1. Everything
But the Bagel Seasoning – A viral sensation that became a
pantry staple nationwide and inspired a dozen imitations from major spice
companies.
2. Mandarin
Orange Chicken – Once rated America’s favorite
frozen entrée by Consumer Reports, it’s a cult favorite that
outperforms many national frozen brands.
3. Joe-Joe’s
Cookies – Trader Joe’s spin on Oreos turned a
copycat into an icon with seasonal twists like peppermint and pumpkin spice.
4. Two-Buck
Chuck (Charles Shaw Wine) – The private label wine that changed
the perception of affordable alcohol forever.
Trader
Joe’s proves that private label can be synonymous with fun, quirky, and
craveable—a far cry from its 1980s reputation as “budget-only” food.
Costco: The Premiumization of Private Label
Costco’s
Kirkland Signature brand launched in 1995, named after the company’s
hometown in Washington state. Initially intended as a cost-saver, it’s now a
badge of quality and trust. Many Kirkland products are co-manufactured by major
national brands—but often outperform their partners in consumer satisfaction.
Four
icons of Costco’s private label success:
1. Kirkland
Signature Organic Peanut Butter – Known for its pure ingredients and
outperforming Jif and Skippy in taste tests.
2. Kirkland
Signature Vodka – Rumored to be sourced from Grey
Goose’s distillery, it became a luxury-status steal at half the price.
3. Kirkland
Rotisserie Chicken – At $4.99, it’s a legend of
loss-leader strategy and sells over 100 million units annually,
generating a loyal weekly foot traffic ritual.
4. Kirkland
Extra Virgin Olive Oil – Rated top-tier in blind tastings by
Consumer Reports, surpassing global imported brands.
Costco
elevated private label into a trust brand, synonymous with quality at
scale—and it did so without sacrificing the simplicity of its value-driven DNA.
Wawa: Private Label with a Regional Soul
Wawa,
the East Coast convenience store phenomenon, blends foodservice with retail
like few others. Its private label strategy focuses on portable comfort food,
freshness, and a strong sense of community loyalty. In Wawa’s case, the brand is
the experience.
Four
private label favorites:
1. Wawa
Coffee – A regional cult obsession, roasted exclusively for Wawa
and often chosen over Starbucks or Dunkin’ by loyal customers.
2. Wawa
Hoagies – Technically foodservice, but
branded as Wawa’s own—signature recipes that have made the chain a sandwich
icon.
3. Wawa
Snacks (Chips, Pretzels, Trail Mixes) – Localized, familiar flavors that
reinforce Wawa’s “made-for-you” appeal.
4. Wawa
Milk and Dairy Line – Dating back to its origins as a
dairy company in the 1900s, this private label anchors its authenticity.
Wawa’s
private label success shows that heritage, heart, and hometown connection
can make a store brand feel irreplaceable.
Legacy National Brands: Stuck Between Shelf and Sentiment
Meanwhile,
legacy giants like Heinz, Campbell’s Soup, Folgers, and Jif are
navigating an identity crisis.
·
Heinz,
once an icon of consistency, now faces copycat competition from retailer sauces
that promise fewer ingredients and cleaner labels.
·
Campbell’s Soup
suffers from what analysts call “heritage fatigue”—a comfort brand outpaced by
fresh, ready-to-eat and globally inspired options in the same aisle.
·
Folgers
struggles against modern craft and cold brew movements, while store brands
introduce premium single-origin or organic blends at similar prices.
·
Jif once owned the
peanut butter category, but now competes head-on with private labels like
Kirkland and Trader Joe’s, which emphasize purity and naturalness over
nostalgia.
These
brands still have power—but it’s rooted in history, not momentum. Private label
competitors are rewriting the story with agility, authenticity, and direct
connection to the shopper.
Insights from the Grocerant Guru®
1. Portability
Meets Private Label Power
Private labels are moving beyond the shelf to the hand. Retailers are
leveraging ready-to-eat and heat-and-eat meals that carry their own brand voice
into cars, offices, and homes. Wawa’s hoagies, Costco’s take-and-bake meals,
and Trader Joe’s fresh bowls prove that private label is no longer just about
packaging—it’s about portability and presence.
2. Experience
Equals Trust
Shoppers trust brands they can experience daily. Retailers like Wawa and Costco
offer in-person sampling, café-style dining, and consistent freshness—all
reinforcing emotional loyalty that no jar on a distant shelf can replicate.
3. Price
Is No Longer the Point
The Grocerant Guru® notes that private label food success now rides on perceived
value, not price tags. Trader Joe’s doesn’t advertise discounts—it sells
discovery. Costco sells confidence. Wawa sells comfort. Each transformed a
label into a lifestyle.
Do you Want Too
Build a Larger Share of Stomach?
Private
label food is no longer the understudy—it’s the star. While Heinz and
Campbell’s built America’s pantry, brands like Wawa, Costco, and Trader Joe’s
are building its identity. They’ve proven that control of the shelf
means control of the story—and in 2025, that story is all about trust,
experience, and the delicious power of brand reinvention.
Outsourced Business Development—Tailored for You
At
Foodservice Solutions®, we identify, quantify, and qualify new retail
food segment opportunities—from menu innovation to brand integration
strategies.
We
help you stay ahead of industry shifts with fresh insights and
consumer-driven solutions.
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