The Wall Street Journal has a story about the continuing rise of private label in the US.
An excerpt:
"American consumers have traditionally shown more loyalty to big food brands than their British counterparts, but there are signs of change. During the first quarter of the year, sales of store brands in U.S. retail outlets increased by 14.6% compared with the same period last year, according to Nielsen data—beating the lower, if still impressive, 11.5% gain for top brands. Supermarket products of all stripes got a big lift in the early weeks of the coronavirus lockdowns as panicked shoppers grabbed whatever was on the shelves.
"The growth of private label should accelerate as unemployment ticks up and consumers look for ways to cut their food bills. Store brands have boomed in previous downturns and supermarkets have big incentives to push them. As these products don’t need to be marketed - placing them beside a well-known brand on the shelf is enough to drive sales - the grocer makes a higher margin on store brands despite their lower sticker prices."
- KC's View:
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Somewhere, Brian Sharoff is smiling…
