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PLMA I'll Have the House Brand, Please

Oct 1, 2012 12:00 AM


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The Private Label Manufacturers Association’s 2012 Private Label Yearbook found that store brands continue to outperform the national brands while setting new all-time records for total sales and market shares, as measured by Nielsen, New York, in US supermarkets, drug chains and mass merchandisers.

NATIONAL BRANDS LARGELY STYMIED

Aggressive price cuts and increased promotional spending on the part of the national brands were not enough to reverse the surge experienced by retailers’ brands over the past few years. With market share solid at 23.6 percent in supermarkets, approximately one out of every four products shoppers purchased in 2011 was a retailer brand.

WHY A GOOD BUY MEANS GOODBYE

Brian Sharoff, President of PLMA, said the yearbook’s statistics prove that consumers regularly switch to private brands during a recession and stick with them—even when economic conditions improve. “In all of the recessions going back to 1980—this is the fourth recession—[we have seen] the same trend: Private label increases during the recession and then retains its gains when the recession is over,” he told Progressive Grocer’s Store Brands. “People do not go back to national brands.”