Are Private Brands for Millennials About Innovation or the Value Equation?

By: Doug Baker, Vice President, Private Brands, Food Marketing Institute

New research from Mintel finds that 42 percent of millennials agree private brand products are more innovative than name brand products.  In reading through the findings, I’m both excited and intrigued by this finding at the same time. What is the source of innovation millennials are seeing in private brands?

As I see it, today’s private brands are using innovation to meet the millennial value equation. For example, millennials love customization and are motivated by products that contain the “and” factor. These are products that go beyond traditional ingredients and formulas.  As an example, my granola bar tastes good “and” has sustainably sourced ingredients. More and more private brands are building in this “and” factor into their products. We’re seeing more functional foods in private brand programs and products with clear and understandable ingredient lists that appeal to millennials who what to know what they’re getting.

Millennials also want to experience world flavors and variety. Some private brands are working with manufactures to deliver on these values. We’re also seeing more private brand products being introduced that are using identifiers, such as “free of artificial dyes.” 

In the end, consumer awareness and acceptance of private brands gives us the opportunity to take private brands beyond price and enter more into the value equation arena.