Store Brands Taking Up Larger Basket Share

U.S. consumers are engaging in grocery bill-cutting tactics: eating out less, buying fewer groceries, and ditching name brands, reports The Wall Street Journal. The shift is boosting private-label brands, which claimed 22 cents out of every dollar spent in grocery stores last year, found the report.

Research from data insights firm Circana shows that national brands still make up the largest percentage of food and beverage sales, but private-label brands continue to gain ground, raising the pressure on companies pushing up their prices.

This is important because sixty-five percent of shoppers say they choose private label over national brands because of store brands’ lower price, according to a Food Industry Association survey. Additionally, consumers are occasionally shifting to private label as they give up or postpone other non-food-related expenses, said Mary Ellen Lynch, private-label research lead analyst at Circana.

“In Middle America, it’s a lot of pressure,” said Lynch.

The report also found that U.S. supermarkets are using private-label brands to build loyalty with consumers and boost foot traffic, said Steve Oakland, CEO of private-brand manufacturer TreeHouse Foods.

“Private-label pricing is aggressive right now,” he said. Full Story (Subscription Required)