The Rise of Private Label Brands

A decade ago, private label brands were considered by the public to be inferior copies of name brand products. Consumers purchased private label food in a pinch, but there was a certain sense of buying second-rate goods attached to those brands. And, often enough, the product did meet a lower standard than the brand name product standing next to it on the shelf.

In recent years, that has changed. Private label goods have been able to shake the mediocre stereotype and take their place on the shelves of the main stream market. In fact, private label goods have become so popular in recent years that they are not only accepted, but fashionable. This change in public perception has prompted grocery store chains to grow their private label product lines.

The private label trend is benefitting both the consumer and the private label retailer. Because private label products do not have advertising expenses, they come with a lower price tag for both the consumer and for the retailer. The consumer feels this immediately because dollars stretch further. Retailers benefit because they spend less up front for private label products.

However, and not surprisingly, not everyone is happy about the growing popularity of private label brands. Companies who have traditionally manufactured name brand products are being hit hard. The current economic climate is an invitation for consumers to watch each and every penny they spend. If they can save a few cents by buying a can of private label green beans, they will. And when they take that can of green beans home and open it up, they are pleased to discover that the quality of the product rivals the quality of name brand. Private labels are competing against brand names in both quality and in price, and winning time and time again.

This trend toward private label brands is an interesting phenomenon to watch. One thing is certain, the face of the Food Retailers market is definitely changing.

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