Private Label Sales to Top $56 Billion by 2011: Study

NEW YORK -- As they finally shake off old associations with substandard "brand x" items, private label or store brand food and beverage sales are climbing steadily, according to "Private Label Food and Beverages in the U.S.," a report from market research firm Packaged Facts here. The report puts 2006 sales at over $48 billion, and forecasts that sales will pass $56 billion by 2011.

Dairy and grain foods are leading the private label charge, with 2006 retail sales topping $7 billion and $5 billion, respectively, according to the study. These segments showed some of the slowest growth from 2002 to 2006 period, however, while such smaller segments as pizza grew significantly.

In the beverage aisle, store-brand bottled water and energy drinks are out in front, with bottled water sales increasing by over 12 percent. Only the juice segment showed a general decline during the same period.

The report found that 41 percent of shoppers now think of themselves as frequent buyers of store brands, vs. five years ago, when just 36 percent did. Packaged Facts attributed this increase to the recent slate of high-profile private label items, among them organics and other premium products.

"The idea that a 'local' retailer can offer products as good or better than a national brand at a lower price only helps to build consumer confidence and loyalty towards the retailer," said Packaged Facts publisher Don Montuori. "The consumer gets a greater value, and the retailer is more profitable."

The study, "Private Label Food and Beverages in the U.S.," can be purchased at or
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