Store Brands Growing Every Which Way

Sep 19, 2003

By George Anderson

Which of the following statements about private label products are correct?

  1. They are growing at a faster clip than brand sales.

  2. They are expanding into more product categories.

  3. They hold the largest share of sales in a growing number of categories.

  4. They are expanding into more retail outlets.

  5. All of the above.

If you picked e., you are correct based on the findings of the U.S. Trends in Private Label report just released by ACNielsen.

Between 1997 and 2002, sales of private label items across all channels grew 38 percent compared to 19 percent for brands.

At the same time, private label entered into 88 new product categories bringing its total presence to 75 percent of those tracked by ACNielsen.

Private label was not only expanding into new categories but growing share in existing ones, as well. Dollar volume share stood at 25 percent for private label in 2002, up from
21 percent in 1997.

Gail Zielinski, ACNielsen Homescan account director and author of ACNielsen’s annual U.S. private label study, said in a released statement, “Private label manufacturers are
driving sales growth by focusing on categories that have been traditional strongholds for store brands. They’re introducing different package sizes and types, new flavors, and
adding new, higher-priced premium private label products. In addition, several retailers are increasing their focus on providing in-store samples of their products and using other
promotions to boost sales.”

Moderator’s Comment: How do you explain the growth in private label? What is the future of store brands?

To see the future of store brands walk into Trader Joe’s and Aldi. [George
Anderson – Moderator

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