What’s true at retail is coming to foodservice:
Nearly Three-Quarters of U.S. Consumers Agree Private Label Brands Are Good Alternatives to Name Brands, According to Nielsen. One-Third of Consumers Willing to Pay More for Private Label Brands.
Once considered a lower-price, lower-quality substitute for name brands, private label products, or store brands, are viewed positively by the majority of U.S. consumers, according to a new survey by Nielsen. Nearly three-quarters (72 percent) of consumers believe store brands are good alternatives to name brands and 62 percent of consumers report they consider store brands to be as good as name brands, up three points since 2005. Private label products account for more than $81 billion in the U.S, up 10.2 percent over the past year.
Nielsen’s survey indicates that an improved sense of quality is likely a driving factor for consumers’ positive attitude toward private label products. Sixty-three percent of consumers believe that the private label brand quality is as good as name brands and one-third (33 percent) of consumers tell Nielsen they consider some store brands are higher quality than name brands.
“While private label products continue to follow the success of consumer packaged goods (CPG) manufacturers’ name brand introductions, more CPG retailers are making private label a priority with messages on quality as strong as messages on value,” said Todd Hale, senior vice president, Consumer & Shopper Insights, The Nielsen Company.
A similar story broke this week in the Wall Street Journal. Failing to tackle this trend head-on is like vaccuming the bedroom while the house is on fire.
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