General Merchandise/HBC

Private Label Earning Street Cred

Reputation for quality grows for store-brand products
CHICAGO -- Private-label companies continue to introduce better-for-you products and more attractive packaging, while being easier on consumers' pockets; recent Mintel research found that 44% of grocery shoppers believe store-brand products are of better quality today than they were five years ago.

Moreover, 39% of respondents who identify themselves as the primary grocery shopper of their household say they would recommend a store-brand product; 34% say they do not feel like they are giving anything up (such as flavor or prestige) by using store brands. Only 19% believe [image-nocss] it is worth paying more for name-brand products.

"With the exceptions of drinks and personal care products, most consumers believe that private-label options are of equal quality to nationally branded products," said Fiona O'Donnell, senior analyst at Mintel. "The lack of perceived difference can be attributed, in part, to the fact that many retailers have introduced premium private-label products in recent years that rival their branded counterparts in flavor and nutritional value, as well as the packaging design and shelf placement."

In fact, 62% of consumers believe there is no difference in quality between name and store-brand dairy products. Similarly, 61% say there is no difference when it comes to canned or shelf-stable food products and 56% think private-label and name brand household cleaners are of equal quality.

"Private-label brands are overcoming the stigma once associated with 'generic' products," added O'Donnell. "Even though the recession has ended, and consumers may be in a better position financially to return to name brands, it's likely that many will continue to buy store brand staples that are of equal quality."

According to Mintel, 60% of primary grocery shoppers usually or sometimes purchase private-label bread or baked goods and 58% usually or sometimes purchase store-brand cheese.

Chicago-based Mintel is a leading global supplier of consumer, product and media intelligence.

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