Private label products – particularly in the food and beverage business – have traveled a long road to mainstream success. Historically thought of as “low budget” brand name alternatives made of inferior materials – thus the lower price – private label brands have won over most consumers and earn respectability.
Consumers have increasingly embraced private label brands even before the pandemic upended economies worldwide. Private label brands are now big business. According to the Private Label Manufacturers Association, one out of every four products sold in the United States is a private label (or store brand). A recent survey found that private brand dollar sales grew 3.8% in 2019, twice the rate of national brands.
As consumers rush to grocery stores, private label brands continue to outperform national brands, posting double-digit sales growth during the first days and weeks of the pandemic.
Nielsen reports that first-quarter dollar sales of private label products across all retail outlets climbed nearly 15% during the first quarter of 2019, almost $5 billion over 2018.
While demand for food, beverage, and dietary supplements remains high, retailers and brand owners must prepare for an uncertain future. Even the most optimistic analysts predict an economic downturn following an unprecedented number of Americans filing for unemployment.
While the future looks bright for private label brands, obstacles remain, especially as the supply chain continues to buckle under the added strain it’s been under for months.
Watch this recorded webinar with speakers TraceGains CEO Gary Nowacki, and Ruben Galbraith, TraceGains Sr. Sales Engineer, for a meaningful discussion about what retailers and store brand owners can do now to navigate the COVID-19 threat and emerge stronger.
Leveraging workflows and alerts to drive collaboration and speed across departments and with suppliers.
Competitive advantages of digitizing specifications and other supply chain documentation, including instant access to information, business insight and complete audit trails.
Searching for suppliers, items, and ingredients using criteria like country of origin, organic, non-GMO, kosher, and more for precise sourcing fast.
Streamlining and automating supplier selection, approval, qualification, onboarding and management.