"Product Quality" Ensures Continued Store Brands Growth
PLMA Board Leaders Express Strong Optimism During Annual Roundtable

The improved quality of store brands over the last decade ensures that economy-driven new purchasers of the products are likely to stick with them even when better times return, said two PLMA board leaders during the trade association's annual look ahead roundtable.

The panelists, Doug Bausch, VP of sales and marketing at OTC pharmaceuticals manufacturer LNK International, Inc., and current chairman of PLMA’s board of directors; and Clay Dockery, VP of corporate brands at Massimo Zanetti Beverage USA, a former chairman who serves as ex-officio, kicked off the discussion with strong optimism about future store brand sales and pointing to product quality as the key.

"The sweet spot for store brands is quality and with that will follow significant sales," declared Bausch.

While positive in the wake of record sales in 2022, both long-time industry executives also warned that store brands are underdeveloped in e-commerce platforms where national brands have a leg up when it comes to the most favorable product placement and presentation. “It is critically important for us to work together as an industry to find solutions to overcome this slow start,” offered Dockery.

Educating the consumer and highlighting store brand quality that is equal or better than comparable national brands while demonstrating price comparisons is essential to leveling the playing field, explained Bausch. He added top of page searches that include the store’s own brand next to national brands could also increase awareness among online shoppers.

Dockery said, "We are losing consumers on the first sale, since E-shoppers favor speed over price and gravitate to familiar brands without considering the price benefit of store brands." As an example, he pointed out that in a short time the coffee category has become dominated by online subscription services.

With work-from-home now the norm, the panelists’ suggested that chains have an opportunity with “a very captive audience” to reach consumers who are spending more time online and not rushing through the retail environment and selecting a product largely because of habit or packaging appeal and time constraints.

The roundtable was moderated by Peggy Davies, PLMA president, and appeared on the association's PLMALive! news and information website. To view the 2023 Year-Ahead Panel, please click here.

Store Brands Continue to Thrive, per IRI
Sales Over the First 11 Months Up 10.6%
Annual Total is Expected to Set a New Record

As 2022 comes to a close, store brand sales in the U.S. continue their steady gains.

Over the first 11 months of the year, dollar sales increased by 10.6%, nearly twice the growth of national brands, which were up 5.8%, according to IRI. 

In the month of November alone, store brand sales improved by 12.4% compared to the same period in 2021, while national brands were up 7.4%. So far this year, store brand dollar share is at 18.5%, unit share is 20.1%. 

Based on the data, PLMA is projecting full year 2022 sales of store brands to reach $221 billion, which would be a $21 billion increase over 2021 and a new annual record. 

The growth is spread across the store. 

Looking at the 17 individual food and nonfood departments that IRI tracks for PLMA, over the trailing 52 weeks ending November 27, store brand sales were up in 16 of them, including double digit increases in nine departments: Beverages, Deli prepared, Liquor, Refrigerated, Floral, Bakery, Produce, General food and Deli meat. Only in the Tobacco department were sales off. 

In the two largest departments for store brands, Refrigerated with $47 billion in sales, and General Food with $38 billion, the increases over the 52-week period were 15.3% and 12.3%, respectively.

Store brands also outperformed national brands in terms of unit sales for the first 11 months of the year; they were down slightly at minus 1.3% while national brands dropped more than three times as much, off 4.3%. For the month of November, store brands were nominally even at minus 0.8% while national brands gave up 4%. Such disparate results in unit sales are often seen as an indicator of shoppers switching to store brands from national brands.

The in-person return of PLMA’s Private Label Trade Show was a tremendous success. Retailers, suppliers, wholesalers and other industry members connected and collaborated to advance the store brand industry. News anchor Jodi Daley reports on product trends from the show floor, ideas shared at the presentations and much more. Click here for video.

The global private label industry will again meet at PLMA’s “World of Private Label” International Trade Show at the RAI Exhibition Centre, Amsterdam, May 23-24.

In all, some 25,000 professionals from more than 120 countries will participate. Exhibitors will be joined by retailers, wholesalers, importers, and others, to examine products, strengthen partnerships, identify innovation in business practices and plan for profitable store brand growth.

For more information regarding World of Private Label and PLMA International, please visit plmainternational.com

Peggy Davies, PLMA President, welcomes everyone to the 2022 Annual Private Label Trade Show.

FOR IMMEDIATE RELEASE
Contact: press@plma.com

PLMA Announces 2022 Salute to Excellence Award Winners
Walmart, Albertsons, Sprouts among retailers honored for store brand innovation

CHICAGO (Nov. 13, 2022) - Walmart’s Sam's Choice™ oatmilk chocolate bar; Albertsons’ Signature Reserve™ ravioli with porcini mushrooms and truffle; and biodegradable household cleaner from Sprouts Farmers Market are among PLMA’s 2022 Salute to Excellence award winners for store brand innovation.

They join nearly 100 other Salute to Excellence winners announced today at PLMA’s 2022 Private Label Trade Show here. The annual awards recognize outstanding food and nonfood products introduced within the last year at supermarkets, drug stores, mass merchandisers and many other retailers. More than 725 products from 50 North American retailers were submitted.

“I congratulate all the retailers that participated in this year’s award program,” said PLMA President Peggy Davies. “These awards prove that store brands are leading the retail industry and giving shoppers the high-quality, high-value and great-tasting products they want.”

Among the product trends from this year’s winners:

• Plant-Based Products - Full Circle Market™ Plant-Based Bolognese-Style Pasta Sauce from Topco Associates; Sam's Choice™ Oatmilk Dark Chocolate Bar, Walmart; Earth Grown™ Non-Dairy Mocha Fudge Almond Milk Frozen Dessert, Aldi.
• Specialty Pasta and Sauce – Signature Reserve™ Ravioli with Porcini Mushrooms and Truffle from Albertsons; and Gustare Vita Parmigiano Reggiano Pasta Sauce from Hy-Vee.
• Eco-Friendly Nonfoods - Total Home® Stainless Steel Silicone Straws from CVS; and Multi-Use Biodegradable Cleaner from Sprouts Farmers Market.
• Organic - Regeneratively Grown Organic Nepali Golden Black Loose Leaf Tea from Thrive Market; SE Grocers Prestige-brand Organic Chili-Flavored Extra Virgin Olive Oil from Southeastern Grocers; Simple Truth Organic™ Chocolate Chip Baked Energy Bar from Kroger; and 365 by Whole Foods Market-brand Organic Fair Trade Unsweetened Coconut Shreds from Whole Foods.

Submissions were sampled and evaluated by a panel of professional and consumer judges on several criteria, including taste, packaging and value for money. Categories include snacks, health and beauty, home and household, food for the family, meal preparation and healthy eating.
The winning products are being showcased at PLMA’s 2022 Private Label Trade Show, which opened today and runs through Nov. 15 at the Donald E. Stephens Convention Center. The winners can be viewed soon at www.plmawinners.com.

About PLMA:
The Private Label Manufacturers Association is a non-profit organization founded in 1979 to promote the store brands industry. It is the only trade group of its kind, representing 3,800 member companies in more than 75 countries. In addition to annual, industry-defining trade shows in Chicago and Amsterdam, PLMA offers its members the annual Leadership conference, executive education and professional development programs, original consumer and market research, as well as digital media platforms, including exclusive news coverage from PLMA Live! and the e-scanner industry newsletter. Follow PLMA on plma.com, Twitter and LinkedIn.