“Private label in America has reached new levels of quality and consumer acceptance. Future growth will depend on keeping up the flow of the best ingredients, flavors and fragrances, so that retailers can offer consumers the most innovative and creative products possible,” said Brian Sharoff, president, PLMA.
Market share for store brands has surpassed 21% of unit sales at supermarkets, and their popularity with consumers has grown with the success of specialty retailers like Trader Joe’s and Whole Foods and wholesale clubs such as Costco. At the same time, traditional supermarket giants—such as Kroger and Safeway—and regional supermarkets—H-E-B and Wegman’s, for example—have used their own brands to build image and profits. Wal-Mart and Target have successfully created national brands out of their own labels, while on the drug chain side, retailers like CVS, Rite-Aid and Walgreen’s have expanded their store brands to bring market share in dollars above 14%.