![]() The supply chain crisis has highlighted legacy brands’ advantages over private label rivals. They have ramped up their offerings for more affordable versions and sizes of premium products to reach budget-conscious customers - a departure from past practices of only innovating and then raising prices, The trends mark an abrupt shift from stores’ private labels cutting into top brands’ strength since the 2008 recession.īig brands have since sharpened their strategies to address vulnerabilities, said David Garfield, head of the consumer products practice at consulting firm AlixPartners. (CHD), the manufacturer of Arm & Hammer, have expressed similar messages in recent weeks. ![]() (MDLZ), which makes Oreos, and Church & Dwight (CL) CEO Noel Wallace on an earnings call last month. “The news is big brands are winning,” declared Colgate-Palmolive Private label products lost 3.3% of their share of the baby wipes market to big brands for the 52 weeks ending October 9 compared with the same stretch a year prior, according to Jefferies, which tracks private label sales and market share using Nielsen data.ĭuring this stretch, private labels also lost 2.6% of their share in diapers, 1.3% in pain medication, 1.8% in vitamins and supplements, 0.8% in housewares and kitchen appliances, 0.5% in garbage and lawn bags, and 0.6% in dog and cat treats. It helps that wages are rising and many households still have extra savings built up from traveling less and reducing spending for other services since the pandemic started, giving them more flexibility to buy pricier items at stores.īut it’s uncertain how long the power brands’ comeback will last as grocery prices surge and consumers seek out budget choices again. Here's why groceries keep getting more expensiveīig name brands are edging out private labels and other rivals thanks to a host of factors - supply chain advantages, shoppers returning to trusted choices during the pandemic, private label growing more expensive, and brands’ hard-learned lessons on how to fight back against cheaper options, according to companies, industry analysts and experts on consumer behavior.Ĭonsumers are also cooking, snacking and cleaning up more at home, and many are showing a willingness to pay higher prices for food and essentials. Small brands under $100 million in sales gained 0.1% of market share.Īlthough those numbers seem puny, any incremental gains in the nearly $1 trillion consumer packaged goods sector could make or break a company’s year.Ī customer places items on a conveyor belt whiling at a checkout counter at Harmons Grocery store in Salt Lake City, Utah, U.S., on Thursday, Oct. Meanwhile, medium-size brands with under $1 billion in sales stagnated. This is the first time this has happened since IRI started tracking such data in 2016. ![]() ![]() Shoppers have returned to the most recognizable names on the shelves such as Pampers diapers and wipes, Simply orange juice, Starbucks coffee, Haribo candy, Hefty trash bags, Tylenol, Shark and Ninja small appliances and Dove deodorant, analysts say.īrands with more than $6 billion in annual sales have gained a 0.3% larger share of the market this year, according to market research firm IRI, while private-label brands lost 0.5% of their share. Legacy brands have reversed their slide in 2021. For years, stores’ cheaper, in-house labels chipped away at the dominance of classic food and household staple brands. ![]()
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