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

Store Brands Lift Grocers in Troubled Times

As the economy plunges into a deep recession, grocery stores are one of the few sectors doing well. That is because cash-short consumers are eating out less and stocking up at the supermarket. And store brand products, which tend to be cheaper than national brands and more profitable for grocers, are doing especially well.

New York Times

Brands Lose Relevance in Food-Buying Decisions

...brand marketers who think that conveying taste, quality and price is pretty much still enough -- "and oh yes, we should probably let [consumers' know that we're sustainable and have some health benefits"--will indeed find that their brands become less and less relevant, she warns.

Media Post

Crushin'

On Thursday Tammy and I had a quick trip to Minneapolis for some ConAgra work, and the one thing that will probably stick with me the most had nothing to do with our project. It was our trip to the grocery. Byerly's to be specific.

I had never heard of this chain before (I think it only exists in Minnesota), but it was the model of an upscale grocery experience. And it was full grocery, not a specialty place like Whole Foods or Fresh Market.

Beautifully lit, airy, open, bright, with wide aisles, the environment encouraged browsing. Beautiful store brand packaging sat proudly next to national brand competition. A wide array of prepared foods was available, along with the expected pharmacy, meat counter, coffee bar, etc.

But things went from mild flirtation to full on crush at the checkout line. There, after more than a few minutes of confusion on our part, our groceries were bagged, put into grey plastic tubs and whisked away. Instead of the bags and our cart, we were handed two license plate-looking things. The cashier patiently explained to the out-of-towners that we were to pull our car around the side and our groceries would be waiting for us. Sure enough, down a little carousel came our tubs of groceries. We said put 'em in the back seat, the man did, and off we went. It was somewhat magical.

Since then I have joked with friends that it was enough to make me want to move to Minneapolis. That's probably an overstatement, but it was certainly memorable and based on just one trip I have been spreading the brand's message to anyone who will listen.

Kroger, you listening?

lundsandbyerlys.com

Supermarkets' own brands filling more shopping carts

As budgets get tighter and food gets more expensive, American shoppers are increasingly switching to store brands -- even upper-income consumers who may not have been inclined to give them a try before.

LA Times