4 Resources to Help Your Private Brands Strategy

By: Doug Baker, Vice President Industry Relations – Private Brands, Technology, Loss Prevention, Food Marketing Institute

According to the 2017 U.S. Grocery Shopper Trends report, three-fourths of grocery shoppers say they choose private brands at least some of the time they shop, and almost half choose private brands on a regular basis. The top categories shoppers regularly purchase for private brands include fresh produce (64 percent), milk or non-dairy substitutes (64 percent), fresh bakery items (63 percent), fresh meats and seafood (59 percent) and refrigerated dairy foods (58 percent).

According to the 2016 Food Retailing Industry Speaks report, private brands ranked as the top strategy retailers use to differentiate themselves, but realizing the true power of private brands takes creativity, insight and innovation. To help food retailers better meet shopper’s private brand needs, our Private Brand Leadership Council sponsored the Power of Private Brands and recently brought the research to life in a four part webinar series with host and moderator Store Brands.

The research and webinar series focused on four topical areas including:

1. A look at the implications of sales data across tiers and categories;
2. A look at the private label consumer based on a national survey and analysis of social media use;
3. A conversation with industry stakeholders to gain a perspective of attitudes and performance; and
4. A look at forces shaping global retailing and how private brands have a unique opportunity with changing consumer demands.

Highlights from the webinars included:

• Private brand sales were hampered in 2016 by deflation and a decline in shopper trips;
• Organic is a top growing segment within private brands;
• Consumer perception of private brands appears to be focused on individual products rather than the brand as a whole;
• Capital investment continues to be an obstacle to innovation; and
• Personalization is the way to bring scale and loyalty to private brands.

The research and webinars were so well received the Private Brands Leadership Council and research partners are already working on the second edition of the Power of Private Brands, which will allow stakeholders to start measuring performance against the intel and recommendations.

For your copy of the Power of Private Brands and additional resources, visit FMI.org/PrivateBrands and check out the webinar recordings archived online.  If you want to dig even deeper, consider attending the Private Brands D.C. Summit this fall where we’ll discuss and address key influences from government and consumer demand changing the private brand retail landscape.