Private label groceries were once so cheap and nasty they were hidden at the bottom of the shopping trolley, but now a new generation of grocery shoppers is fuelling strong growth in these brands.
Sales of stores»
private label groceries are growing faster than branded goods because brands are being removed from shelves, reducing consumer choice, suppliers say.
Mr Conomos said the strong growth in
private label groceries at Woolworths was driven by a flight to value by consumers as living costs rose, increased shelf space and more awareness of private label as qualify improved.
The broker estimates that
private label groceries account for about 17 per cent of Woolworths» Australian food and liquor sales and the Select brand about 9 per cent of sales.
The rapid expansion of
private label groceries at Coles and Woolworths — where house brands now account for about 20 per cent of packaged grocery sales — has had devastating consequences for some suppliers, particularly in staples such as bread and milk.
Food industry sources say the major retailers are using
private label groceries to gain market power and increase profit margins at the expense of branded suppliers, which are subsidising private label with profits from brands.
Analysts believe Woolworths continued to lose market share in food and groceries in June even after the retailer stepped up discounting for branded and
private label groceries and trimmed online prices to lure customers back to stores.
In 2016, they announced a lineup of
private label grocery products.
We specialize in custom roasting the very finest coffees for
private label grocery and food service clients.
Woolworths» plan to cut the price of
private label grocery brands to better compete with Aldi and Coles may cost the retailer as much as $ 1 billion, reducing earnings from food and liquor by almost a third, according to brokers.
Woolworths is reviewing
its private label grocery strategy after admitting a week ago that consumers perceived the quality of Aldi's private label brands to be on par or better than Woolworths» Select brand and superior to its entry - level Homebrand range.
Woolworths» chief executive Brad Banducci flagged a shake - up of the retailer's
private label grocery strategy last May, acknowledging that Homebrand, with its no - nonsense red and white logo, had a «perception problem».
It sells a range of about 1400 mainly
private label grocery products and some national brands at its stores, which are generally half the size of the full - line supermarkets operated by larger rivals Woolworths and Coles.
But late or not, this California native and mostly
private label grocery store has quite a few hidden gems that have made me a convert.
Not exact matches
Amazon, which has long had designs on the
grocery industry, will also sell Whole Foods»
private -
label brands, including 365 Everyday Value and Whole Foods Market, on its site and via the Prime Pantry, Prime Fresh and Prime Now delivery program.
Private labels have long enjoyed a significant market share in the European
grocery market; they have been less popular in Canada and less still in the United States.
In a bid to boost profits,
grocery chains are pushing their
private -
label lines at the expense of national - brand products.
Spun off from Dean Foods in 2011, TreeHouse almost doubled its revenue last year when it bought a
private -
label grocery business from ConAgra (cag) in 2016.
There were also significant discounts on some of Amazon's
private -
label grocery and apparel products.
Like many U.S.
grocery chains, Safeway wanted to improve its
private -
label offerings during the economic slump, when consumers were eager for brands that offered better value.
The Costco flagship store will initially sell to Chinese consumers competitively priced food and healthcare products, including those carrying Costco's Kirkland Signature line of
private -
label goods ranging from clothing to
groceries to laundry detergent to health and beauty aids, according to a Tmall.com press release.
The competitive landscape within the
grocery store market continues to mount with Wal - Mart Stores Inc (NYSE: WMT)'s launch of a
private label brand for its Jet.com property, the New York Post reported.
«The
grocery chains that we supply with
private -
label sauces are doing well with the customer that knows to buy products that follow their brand standards.
Reed Food Technology's brand will never be accessible on the shelves of the local
grocery store, but many are sold
private label and used by food manufacturers and foodservice operators to create meals consumers crave.
«The bulk of that goes to our stores, but we service about 100
grocery stores and do some
private label for other companies under their name,» Jeff says.
The entrepreneurial spirit that lives at Grand River Foods has helped the company grow to produce more than 200
private -
label food products for the top
grocery, restaurant and foodservice companies in Canada.
Our customers include major global
grocery retailers and well - known international foodservice operators, and we specialise in making products for them under their respective
private labels.
One of Val's Distributing's
grocery customers recently partnered with the company to develop
private label products.
Leclerc Foods produces
private -
label cookies, granola bars, fruit bars, sugar wafers and crackers for many major
grocery chains and retailers in the United States.
The company grew across state lines and eventually became a national manufacturer of
private label distilled spirits for the country's largest
grocery retailers.
The Mississauga, Ontario - based company grows, packs and ships a line of frozen fruits and vegetables under both its Green Organic
label in Canada and
private labels for a number of major
grocery chains in the United States.
Our products are often talked about in the
grocery industry and one of the most consistently growing segments in
grocery is
private label.
The company
private -
labels its premium turkeys for
grocery chains such as Whole Foods, Wegmans Food Markets, Stew Leonard's, ShopRite (Wakefern), and Bell and Evans.
Kaufland's stores are typically 20,000 square metres, five times the size of the average Coles or Woolworths supermarket, and carry about 60,000 branded and
private label products, more than double the range in Coles and Woolworths, mainly fresh food and packaged
groceries but also clothing and footwear, electronics, homewares, sporting goods, stationery, garden products and hardware.
Our
grocery clients enjoy the largest and fastest growing
private label coffee brands in the industry, regularly ranking # 1 or # 2 in the specialty coffee category.
We can tell you that Distant Lands is the leading
private label specialty coffee supplier to
grocery stores in the US.
UBS analyst Ben Gilbert said retailers were responding to the shrinking pool of supplier funds by using fresh rather than packaged food and
groceries to lure shoppers, improving their
private label offers and using price «creep» (price rises that are not passed on to suppliers) to boost margins.
Mr Cousins endorses Woolworths» plan to cut
grocery prices, boost service in supermarkets and improve its
private label range to better compete with Aldi, but says the investments will lead to a significant earnings rebase as food and liquor margins fall from 8 per cent to at least 6 per cent.
As part of Woolworths chief executive Grant O'Brien's strategy to defend and extend its share of the $ 86 billion
grocery market, the retailer plans to double the sales penetration of
private label brands over five years.
Beverage industry stalwart Peter Brooks has three words of advice for
grocery manufacturers decrying the march of retailers»
private label brands — get over it.
Coles and Woolworths have also re-engineered their
private label ranges to better compete with Aldi, improving packaging and product formulations to overcome consumer perceptions that their own - brand
groceries were inferior to those at Aldi.
TOPCO ASSOCIATES, LLC — Discontinued Infringing Product Gross Point Road Skokie, Illinois 60077 Steve Lauer, CEO Company: Large North American Food Manufacturer & Marketer of
Private Label Products for many large
Grocery Store Chains in the United States Product: World Classics Trading Co..
Citigroup's Craig Woolford says the investment in
private label prices is likely to cost Woolworths a more modest $ 396 million, reducing
grocery margins by around 92 basis points.
Grocery retailers need to stop making copycat
private label products and start thinking like branded consumer goods companies to avoid losin...
The push into
private label and fresh food comes as the major retailers negotiate a voluntary code of conduct with
grocery suppliers.
«There's huge emphasis in the
grocery aisles on branded versus
private label but the elephant in the room is that as fresh food grows, the pressure on shelf space in packaged
groceries will continue to escalate,» Mr Conomos said.
Coles»
private label brands now account for 20.5 per cent of packaged
groceries, down from 21 per cent two years ago.
The
grocery chains have both expanded their share of the liquor retail market and boosted the number of
private label wines that mimic
labels produced by boutique producers, but often sell at lower prices.
As part of negotiations over an industry code of conduct, suppliers have demanded that retailers quarantine or «ring - fence» their
private label and branded
grocery buying teams to prevent supermarkets using confidential supplier information to develop or promote
private label products.
Pedon is present in all sales channels either with own - brand products either as
private labels in the
grocery chains with more than 100 ranges.