Private Label Prosperity Meets Innovation

I meant to go to PLMA's 2008 Private Label Trade Show last month, I really did. I even blogged about the rise of private labels a few days before in preparation. Alas—you know what they say about best-laid plans—instead I got caught playing catch-up on various work fronts and missed the show. But I wish I didn’t.

The New York Times just published a story on the rising popularity of store brands, with Nielsen market research reporting that dollar sales of these items rose 10% during the last year vs. 3% for branded products and that store brands account for almost 22%t of grocery products sold.

These aren’t your mother’s generic products with black and white “stencil” packaging and bargain basement quality. They’re not even knock-offs of national brands, but, as the NYT says, “premium store-brand items like organics” or “products without direct competition.”

So while many manufacturers are retrenching and focusing on core and value brands during the downturn in the economy, it’s good to know there are places where product innovation is flourishing.

  –Lynn A. Kuntz