Organic Foods Get on Private-Label Wagon

Low cost organics in PL clothing, now gaining steam:

For years, the organic-foods segment logged annual sales gains of 20%-plus, but that growth has slowed. Sales of natural and organic grocery products rose 4.6%, to $18.3 billion, for the 52 weeks ended June 13 from a year earlier, according to SPINS Inc., a market researcher.

Slowing demand has pushed even reluctant name-branded organic food companies to offer private-label products. Frontier Natural Products Co-Op, which produces organic spices, teas and oils, began selling private-label products last year as retailer requests piled up.

Wall Street Journal

Private Label Programs Take Off

According to The NPD Group's "Private Label Perceptions, Usage Patterns and Intentions," 24 percent of all food and beverages served in American homes last year were store brands, up from 18 percent in 1999. Today, 97 percent of all households consume private label foods on a regular basis.

"There is no question that private label foods have become an integral part of American life," said Harry Balzer, chief industry analyst at NPD and author of "Eating Patterns in America." He added: "Furthermore, we do not hide private label foods as an ingredient or as an additive to another dish. Today over half of all store brand food eatings are the end dish."

BrandWeek

Wal-Mart Relaunches Private-Label Line

Country's largest -- no lie -- food brand redesigns, refreshes and relaunches. And at a most opportune time:

Wal-Mart says its research shows that 75% of shoppers say the economy is affecting their decisions about whether to buy to national or grocery store brands--with 30% of shoppers saying they are buying more private-label products than a year ago, and 77% agreeing that store brands they buy "are as good as, if not better than, national brand products."

MediaPost

Private Label Winning Battle of Brands

Tough economic times serve as impetus for consumers to try private label. And they may not ever go back to the brands:

They [experts] predict a structural slowdown in consumer spending that could last four to 10 years, which, combined with increasingly marketing-savvy and aggressive retailers, could conspire to push private-label shares to a dizzying high -- as much as six times the roughly one-point gain already seen since the recession began in December 2007.

Ad Age