Private brands now represent close to twenty percent of grocery purchases with these labels now available for packaged goods, dairy including eggs, OTC pharmaceuticals and even cosmetics.
At the recent Groceryshop Conference in Las Vegas, speakers representing major chains indicated their commitment to private brands. Ahold-Delhaize has the intention of achieving 45 percent of sales through private brands with the company currently at the thirty percent level. Sam’s Club considers that national brands will provide greater value and innovation. Amazon has unveiled Amazon Saver; a new discount line and Albertsons has even introduced a private label wine following the example of Costco.
Major chains are following a narrow path between expanding private label but maintaining mutually acceptable commercial relationships with CPG manufacturers.
During the inflationary period through 2021-2023, consumers opted for lower-priced private brands finding them equivalent in quality to familiar national brands. Reversion to these products appears to be slow given acceptance of private label items shelved alongside national brands at lower prices.