Private label brands have struggled to keep up with brand name offerings during the past year, according to data from IRI, reports Food Dive. The firm said that in the year ending on September 19, 2021, sales of brand name products rose 3.6 percent to $536 billion, while private label product sales increased only 1.5 percent to $142 billion.
In addition, 79.1 percent of each food dollar spent in the year leading up to September 5, 2021 went towards brand name products, compared to 20.9 percent for private label products. The market share for brand name products rose especially in pork (up 3.3 points), beef (up 2.9 points), as well as fresh bread/rolls and bottled juice (each up 1.5 points.)
Retailers looking to drive private label sales should take advantage of the growing ecommerce channel, recommended Kara Sheesley, former vice president of retail engagement at NielsenIQ.
"Retailers own that space, and so they actually have more control over what your eye is taken to, which also means that it creates a great opportunity for retailers to support the growth of their own brands," she said. Full Story
Related: Brandless Raises $118 Million; Walmart Expands Private Label Wine Offerings.