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When 2014 came to a close, store brands had accounted for nearly three billion dollars in incremental sales overall, an increase of +2.5% over the previous year and more than twice the percentage gain that was recorded by national brands.
Total sales of private label in the U.S. were $115.3 billion according to the 2015 Private Label Yearbook published by the Private Label Manufacturers Association (PLMA).
As a result, store brand dollar share moved up across all outlets combined Ė consisting of supermarkets, drug chains, mass merchandisers, and the club and dollar store channels.
Over a three-year period, store brands sales across the combined retail outlets have increased by $5.5 billion, moving store brand dollar market share from 17.3% to 17.7%. The run-ups are much the same in the individual channels. Over that period, the annual sales volumes for store brands have risen by $2.5 billion in supermarkets and risen by $200 million in drug chains.
The PLMA Yearbook utilizes data provided by The Nielsen Company for the 52 weeks ending December 27, 2014. The annual compilation has become the benchmarking standard for retailers and suppliers, where Nielsen sales and market shares statistics are reported for more than 700 product categories.
The yearbook is published exclusively online, and access is free to PLMA member manufacturers, brokers and suppliers. Retailers and wholesalers can gain free access to the data and analysis, including new updates every quarter, by logging in at www.askplma.com and following the prompts for Private Label Yearbook. PLMA members can access the online yearbook via PLMA's member services website at www.plma.org.
For additional information on the growth of store brands or to schedule an interview with PLMA President Brian Sharoff, contact PLMAís press representative at (212) 972-3131, or email email@example.com
NEW YORK - A new nationwide study of consumers in the all-important 25 to 45 age group indicates that these shoppers are increasingly demonstrating loyalty to the stores they use for household grocery purchases.
The new PLMA study, entitled ďThe Rise of Loyal Shoppers,Ē focused on 1,059 men and women ages 25-45, a segment which makes up more than one-third of the U.S. adult population. The 81 million Americans in this key age group are of critical importance to retailers: Their spending on household grocery products is considered to be the highest among all age groups as they engage in family formation and career building.
The study challenges conventional wisdom that consumers regularly shop at anywhere from 3 to 5 stores, chasing after promotions and the lowest prices.
ďThis latest study indicates that many long-held assumptions Ė shaped by years of market dominance by the Baby Boom generation Ė are no longer true,Ē says Brian Sharoff, President of PLMA. ďBuffeted by a severe recession, a revolution in communications, media and advertising, and a retail landscape that bears little resemblance to what existed less than a decade ago, todayís consumer is not the same shopper we used to know.
According to the PLMA study:
These consumers shop often, but a majority does their regular grocery shopping at only two stores. The rate of shopping trips is high: more than eight in ten of consumers ages 25-45 shop at least weekly. But patronizing just two stores for their regular household grocery needs is by far their most popular shopping regimen and it has been increasing as a habit overall during the past decade. This runs counter to the conventional wisdom that consumers are increasingly shopping across a growing number of stores for different products. In a 2006 PLMA study, a third of all consumers said they shop in two stores, but in the new study the figure has risen to 48%.
While they shop around, they are in fact very loyal to their favorite stores. The study refutes another piece of conventional wisdom: the image of the fickle American grocery shopper. Some observers contend that every time a new or revamped retail format debuts, consumers forsake their favorite store and rush to the new shop on the block. The survey casts doubt on that scenario. Rather, it reveals that these younger consumers have been loyal to their favorite stores for years. Six in ten have regularly shopped at their grocery store as well as their mass merchandiser for more than five years. Half have shopped at their drug store for that long.
They are buying store brands more often than shoppers in previous studies. About half of the respondents ages 25-45 buy store brands ďalways/almost always/frequentlyĒ in their supermarkets, drug stores and mass merchandisers. This is a dramatic increase in the top rates of purchase when compared to PLMA studies over the past decade. In 2002, the corresponding figures for all consumers were: 36% in supermarkets, 22% in drug stores and 28% in large discount chains/mass merchandisers. In 1991, the figure in supermarkets was only 12%.
Store brands may be the retailerís best friend. Consumers 25-45, in increasing numbers, are trying store brands for the first time in product categories where they had previously only bought a national brand. Moreover, in overwhelming numbers they report the trial produced a satisfactory experience. In one of the most significant findings in the survey, more than 49% of respondents recently choose a store brand for the first time instead of a favorite national brand in a particular category. When later asked how they compare the store brand with their previous choice of a national brand, 28% reported ďvery favorablyĒ and another 62% said ďfavorably.Ē A trend widely observed during the recession, such store brand trial is increasing: In the 2009 survey, 35% of all consumers said they engaged in the practice and a year later the figure had grown to 43%; the post- purchase satisfaction rates expressed by consumers were as high in both earlier studies as it is in the new one.
ďThe baton has passed to a new generation of consumers,Ē adds PLMAís Sharoff: ďThere has been a major shift of purchasing power in the marketplace. After decades of dominance by boomers, a new generation of Americans Ė those ages 25-45 Ė has taken over as the heaviest purchasers of consumables. Whatís more, they behave differently from other generations when they shop.Ē
To request a free copy of PLMAís new consumer research study, ďThe Rise of Loyal Shoppers,Ē email firstname.lastname@example.org.
SCOTTSDALE, AZ - Howard Kirschenbaum, Vice President of Sales for Armonk, NY based Trinity Plastics, Inc., a division of Inteplast, was elected March 20 to serve a second consecutive term as Chairman of the Board of Directors of PLMA. The election took place during the association's Annual Meeting and Leadership Conference here.
In acceptance remarks [click link to download], Kirschenbaum gave recognition to the individuals who dedicate their time and talent to the work of PLMA, while also highlighting the ways that member manufacturers bring added value to their customer relationships and enlarge the scope of private label business opportunities available to their companies by taking on a more active role within their industry association.
Dean Erstad, Senior Vice President of Sales for Seneca Foods Corporation, was re-elected to the position of First Vice Chairman, and will continue to serve with Kirschenbaum on the Executive Committee of the PLMA Board of Directors, as will Bill Lucia, General Manger, Inter-American Products, Inc., who was re-elected to the Second Vice Chairman post. Five individuals were elected to the Board for three-year terms from 2015-2018. They are: Kent Dell, ADM Cocoa; Tom Ewing, T. Marzetti Co.; Peggy Davies, McCain Foods USA; Roy Eliasen, Mizkan Americas, Inc.; and Paul Myers, Rockline Industries.
Continuing members of the PLMA Board of Directors include: John Schaeffer, Aspen Products, Inc.; Tom Chaffee, Bay Valley Foods; Linda Lee, C.H. Guenther & Son, Inc.; Chris Anderson, Energizer Private Brands; Larry Hamwey, The Jel Sert Company; Dan Muller, Merisant; Gary Petersen, Red Gold LLC; Lisa Manzoline, Reynolds Consumer Products; Kevin Kollach, S.T. Specialty Foods; and Bill Bond, Willert Home Products.
Mike Slattery of Slattery Sales & Marketing, continues to serve on the Board representing PLMA member brokers, while Deborah Ginsberg of Strategia Design represents PLMA member suppliers. Arthur Handler of Mound Cotton Wollan & Greengrass, also continues as General Counsel.
For information about store brands and to arrange an interview with Brian Sharoff, President, PLMA, contact Dane Twining, Director of Public Relations, at (212) 972-3131.
CHICAGO - Private label buyers and sellers arrived here, Nov 16-18, for PLMAís Store Brands Reality Trade Show and were greeted by the largest show in the associationís 34-year history.
The show offered a total of 2,750 exhibit booths throughout three major halls at Chicagoís Rosemont Convention Center, as 1,335 exhibitors competed to get their store brands products in front of buyers and executives from Americaís leading supermarkets, drug chains, mass merchandisers, wholesale clubs, convenience and specialty retailers.
At the show opening, organizers were predicting another record year for attendance as well, with pre-registrations by retail buyers, wholesalers and other visitors exceeding 4,250, or nearly 10% ahead of last yearís numbers.
Store brands suppliers presented tens of thousands of products across virtually every food and beverage category Ė including prepared foods, frozen and refrigerated, ingredients, snacks, gourmet and specialty Ė while non-foods offerings included health and beauty care, over-the-counter pharmaceuticals, vitamins & nutrition, household, kitchen and cleaning products, DIY and general merchandise.
Among the showís special features, PLMAís New Product Expo turned a spotlight on the newest products being offered by exhibitors on the trade show floor, while PLMAís popular Idea Supermarketģ showcased store brands programs, products and packaging from more than 50 leading retailers across North America, Europe, Asia and Latin America.
Increasingly, the growth of store brands at Americaís largest retail chains is attracting attention from international manufacturers, who seek to build a market for their products in the U.S. The Show floor presented international pavilions from Italy, France, Spain, Denmark, South Africa, Turkey, South Korea, China, Taiwan and Mauritius, as well as from Canada, Mexico, Ecuador, Peru and Argentina.
PLMAís own World of Private Label pavilion and international exhibitors taking individual spaces extended global representation at the show to include Germany, United Kingdom, the Netherlands, Belgium, Poland, Greece, Bulgaria, Romania, Israel, Thailand, India, Australia, Colombia, Chile and Brazil, among others.
Year after year across the U.S, private labelís growth continues to outpace the national brands, reaching new heights for consumer sales and retail market share. According the latest industry sales data compiled by The Nielsen Company, private label unit market share in supermarkets has reached 23.4% and dollar market share is now at 19.4%. Total private label sales in the U.S. last year surpassed $112 billion.
Store brands continue to grow in 2014. In the third quarter ending September 27, store brand sales increased +2.8% across all outlets combined Ė a rate of growth three times that of national brands, which were ahead +0.9%, per Nielsen.
Editors: To arrange an interview with PLMA President Brian Sharoff, contact PLMAís press representative at (212) 972-3131.
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