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No-Name Brands Continue Their Relentless March

  • Ad Age, Wednesday, April 22, 2009 10:32 AM
House brands now make up 24% of all food and beverages served in U.S. homes, up from 18% in 1999, according to a new NPD study, and 97% of households purchase unbranded products from time to time, Emily Bryson York reports.

"This is a trend, but not just because of economic difficulties," says Harry Balzer, chief industry analyst at NPD. In fact, he says that private-label consumption appeared flat over the past year. Survey participants say they choose private labels because of price and value, but many also feel the quality is similar or superior to name-branded products.

But Bill Schober, editorial director of the In-Store Marketing Institute, maintains that the recession has goosed private label's market share. Information Resources Inc. data shows private label increasing 1% to 25% of all grocery unit sales during 2008, he points out. Better-looking boxes and higher-quality products have helped remove the stigma attached to house brands, he adds.

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