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National Brands on the Defensive: Times & Trends Report Explores Private Label Share Loss

Susan ViamariSusan Viamari

Posted on Monday, November 19th, 2012

Throughout the economic downturn, budget-friendly private label products enjoyed their time in the spotlight, but have hit the proverbial glass ceiling. During the past year, private label has made impressive gains in some channels, retail banners, and categories, but national brand manufacturers have not been just idly weathering the storm.

Our latest Times & Trends report, “Reversal of Fortune: National Brands Pick up Gains on Private Label,” outlines private label share losses across many CPG categories and some CPG channels and explores national brands’ strategies to defend their role in the marketplace.

National brands are intently focused on making up for lost sales by offering new value, quality and innovation. Still, for private label, despite share decline in some areas, there are opportunities for growth. Our analysis identifies attractive category, channel, and shopper segment opportunities and provides actionable recommendations to marketers of both national and store brand products.

Key findings of this report include:

  • Although private label unit share of CPG products slipped to 17.1% during the past year, dollar sales slightly increased.
  • National brand volume share is on the rise in 40 of the 100 largest CPG categories.
  • Private label share is above average and growing in the grocery channel, but slid in drug and convenience stores during the past year.
  • A majority of private label categories receive below average merchandising support, which has been declining at a faster rate than the industry average during the past several years.

As the first edition to add Walmart, military commissaries and select club and dollar chains sales data to our already extensive coverage, this issue of Times & Trends captures an even more robust snapshot of the CPG landscape than previous private label analyses.

For more details, please download the full report. Additionally, I hope you’ll register and join us for the corresponding webinar on Thursday, Nov. 29 at 12 p.m. CT.