PLMA e-scanner October 5, 2024

Welcome to PLMA’s e-scanner newsletter – News, Insights and Happenings

By Carol Angrisani, Editor and PLMA Content Producer

NEWS ROUNDUP
Private Label Sales Continue to Outpace National Brands

Over the first two months of 2025, store brands continued to dominate national brands by outperforming their counterparts in both dollar and unit sales across all U.S. outlets, per PLMA’s Circana Unify+ data.

Store brand dollar sales gained 5.6% and unit sales rose 1.7%, compared to national brands, which were up only 1% in dollars and down 0.8% in units, as of February 23, 2025, vs the same period a year ago.

Store brand market shares for 2025 moved up to 21.7% for dollars and to 23.9% for units, both all-time highs that reflect the superior, multiyear performance of private label vs brands at checkout.

It's a familiar scenario. In every one of Circana's last 29 monthly reports to PLMA, store brands finished ahead of national brands when it came to changes in dollar and unit sales compared to the prior year.

All ten food and nonfood departments that Circana tracks showed store brand dollar sales growth for the 52 weeks ending 2/23/25. Refrigerated had the best improvement, up 10.8%, followed by Beverages (+4.5%) and General Food (+3.8%). In store brand unit sales, the leading department gainers were Beverages (+4.3%), Pet Care (+3.8%) and Home Care (+3.6%).

PLMA Study Reveals European Private Label Prospects

European private label manufacturers and retailers can expect to be very busy over the next few years, judging by preliminary findings of a new multinational PLMA survey of more than 1,000 industry executives.

According to the survey, a majority of respondents predict the growth and success of both private label and their own companies.

PLMA's 2024 study - “European Retailers & Manufacturers Talk About the Future: What Will the Private Label Landscape Look Like Over the Next Five Years?” - consisted of about 30 multi-part questions. The comprehensive online survey was made available to participants in English, French, German, Italian and Spanish. It was fielded for PLMA International by Surveylab from June through August 2024.

The survey gathered insights from retailers and private label manufacturers on critical issues, including the relationship between the parties; product innovation and development; the influence of today’s environmental and societal requirements on the supply chain, and factors contributing to the prospects for the growth of private label.

PLMA’s Project Director Judith Kolenburg will present a summary of the report at the Private Label Summit in Milan on 29-30 October. Following her presentation, a panel of industry leaders will analyze the findings of the survey. Edgar Elzerman, Retail Consultant, ECI, will moderate the panel. A full report will be made available to PLMA members and retailers in November.

Report: Limited-Edition Products Enhance Store Experience

Limited-edition private labels enhance the store experience and keep shoppers coming back, according to the latest “Private Brand Intelligence Report” from Daymon and Advantage Solutions.

More than three-quarters (77%) of shoppers have a favorable view of private brands that launch limited time offerings and new flavors.

Among other results:

  • Nearly 9 in 10 (87%) of shoppers say they buy private brands during every typical grocery trip.
  • 76% purchase private brands because they are more affordable.
  • 51% turned to private labels to support back-to-school shopping, August 2024.
Survey: Gen Z Shoppers Support Earth-Friendly Brands

Generation Z consumers are focused on sustainability and quality when shopping for groceries and are willing to spend more on products that reflect these values, according to a new survey from YouGov for Whole Foods Market.

The survey of 1,023 adults between the ages of 18 and 27 found that 70% of respondents support climate-smart agricultural practices, with 55% willing to pay more for environmentally sustainable products. Additionally, more than half of Gen Z consumers prefer brands that prioritize lower environmental impacts or locally sourced foods.

Quality is also important for this younger generation. Eight in 10 survey respondents said they prioritize food quality in purchasing decisions, and 70% are willing to spend more on high-quality food.

The study also reinforces a growing demand among younger generations for clear information about sustainability to make informed purchasing decisions. Specifically, as climate change increasingly impacts consumer behavior, the findings revealed Gen Z is hungry for greater transparency regarding food sustainability and quality.

Among other findings:

  • 68% feel they would benefit from more information from retailers about the sustainability of various food products.
  • Three-quarters of Gen Z view reducing food waste as essential for sustainability, yet only half prioritize sustainable packaging.
  • Brand loyalty is increasingly tied to social responsibility, with 69% believing brands should advocate for a change in responsible sourcing, 66% preferring brands that give back to local communities, and 71% wanting brands to support their employees.
     
IDEAS AND INSPIRATION: Albertsons, Giant Eagle, Loop Neighborhood Market

WineAlbertsons Cos’ new Bee Lightly French wines are packaged in unique flat bottle design crafted from 100% recycled polyethylene terephthalate (PET). The wine is currently available in 2022 Bee Lightly Chardonnay and the 2023 Bee Lightly Rosé.

Pumpkin spice isn’t the only fall flavor trend. Retailers are also launching a variety of maple-flavored foods and beverages. At Giant Eagle, Pittsburgh, for instance, there’s Market District Maple Cream craft soda and Giant Eagle Maple Cream Granola.

California-based convenience store chain Loop Neighborhood Market has introduced a private label line of candy and snacks. The Delish by Loop line features 16 bagged treats, including fruity gummies, nuts and trail mixes. 

DATA POINTS: Online Grocery Sales

$9.9 Billion

Monthly sales of the U.S. online grocery market in August, a 7% increase over last year, according to the Brick Meets Click/Mercatus Grocery Shopper Survey fielded August 30-31, 2024

Trend Alert: Protein Power

Protein-rich foods and beverages continue to hit store shelves. For instance, Wegmans Food Markets, Rochester, N.Y., has debuted new pancake mixes packed with up to 14 grams of protein per serving. They are available in two flavors: Buttermilk and Chocolate Chip.

NOTABLE QUOTABLE: Synticee Denmark, ALDI

“We saw the cold foam trend take off in the coffee world and knew we had to bring it to ALDI Fans fast so they could try it at home.”

- Synticee Denmark, ALDI’s director of Buying for Dairy, said of the launch of Barissimo Barista Cold Foam. The product was launched in just eight months. About 2 million cans have already been sold. It’s been such a success that ALDI has introduced a Pumpkin Spice and Oat Milk version.

IN CASE YOU MISSED IT: ALDI's Dave Rinaldo Will Deliver the Keynote at PLMA Show

Watch our news report here:

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Events

By Invitation Only: Select Undergraduates Explore Career Options in Private Brands Industry

Where do you go to learn about developing and marketing store brands? The answer for more than 1,900 graduates has been PLMA’s annual Executive Education Program.