According to a new report released by Packaged Facts, own brand food and beverage sales reached more than US$48bn in 2006, and are set to rise to in excess of $56bn by 2011.
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The largest own brand categories are dairy and grain, where sales for 2006 totalled $7bn and $5bn respectively. Own label pizza was one of the segments that witnessed fastest growth during the year, with sales climbing 9.7% in value.
According to the report, titled ‘Private Label Food and Beverages in the US’, 41% of shoppers identify themselves as frequent buyers of private label goods – up from 36% in 2005.
According to Don Monturi, publisher of Packaged Facts, the rise of private label is the consequence of the quality and value offered by retailers. “The idea that a ‘local’ retailer can offer products as good as or better than a national brand at a lower price only helps to build consumer confidence and loyalty towards the retailer,” Montuori said. “The consumer gets a greater value and the retailer is more profitable.”
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