Private labels soaring while economy tanks
Private label product sales are increasing past
those of name-brand counterparts due to the poor economy and will continue to
do so in the next year, according to industry experts. In terms of dollar
sales, U.S. private label product sales have increased 10% this year, compared
to less than 3.5% growth for name-brand products, according to Nielsen. Tougher
negotiations are expected in the current commodity and economic climate.
According to analysts, the U.S. recession is expected to put more pressure on
big-name food manufacturers to keep retail prices low so as to not lose
consumers, especially since corn and crude oil prices have plunged since the
summer.
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