The U.S. Market for Private Label Foods and Beverages

Published by: Packaged Facts

Published: Jul. 1, 2003 - 115 Pages

Table of Contents

• Scope and Methodology
  
• Market Parameters
  
• Report Methodology
  
• Simmons Market Research Bureau
  
• Information Resources, Inc.

The Products

• Two Broad Segments, Many Different Categories
  
• Evolution and Recent Growth of Private Label in the U.S.
  
• Innovations in Packaging

The Market and Market Dynamics

• 2002 Sales Near $119.0 Billion
  
• Sales to Reach $151 Billion by 2007
  
• Table 1-1: U.S. Retail Sales of Private Label Food and Beverages, 1998-2007
  
• Table 1-2: CAGR for Private Label Food and Beverages, 1998-2007
  
• Figure 1-1: U.S. Retail Sales of Private Label Food and Beverage Products, 1998-2002
  
• Market Size by Product Category
  
• Factors Affecting Market Growth for Private Label Food and Beverages
  
• Figure 1-2: U.S. Retail Sales of Private Label Food and Beverage Products, 2003-2007

Market Dynamics

• Store Brands Go Premium
  
• Retailers See Growth in Organic
  
• Courting the Hispanic Market

The Consumer

• Nutritional Value Less Crucial
  
• Toward Building Loyalty
  
• Table 1-3: A Demographic Snapshot of the Private Label Buyer
  
• Simmons Consumer Survey
  
• Table 1-4: Percent of Consumers Who Use Private Label Food and Beverage Products By Product Type

Distribution and Retail

• Evolution of the Private Label Supply Chain
  
• Developments in the Traditional Supply Chain
  
• Private Label E-procurement
  
• E-Commerce DSD Opportunities Provide Retailers and Manufacturers With Profit Growth
  
  
  
• Retail
  
• Store Brand, Store Loyalty

Chapter 2: The Market

• Market Size and Growth
  
• Total Market Size
  
• Table 2-1: U.S. Sales of Private Label Food and Beverage Products, 1998-2002
  
• Overall Market and Selected Categories Examined Separately
  
• Figure 2-1:U.S. Retail Sales of Private Label Food and Beverage Products, 1998-2002
  
• Bottled Water Up 18.8% to $959 Million
  
• Table 2-2: U.S. Retail Sales of Private Label Bottled Water,
  1998-2002
  
• Carbonated Beverages Down 2.5%
  
• Chocolate Candy Sales Higher than 1998
  
• Table 2-3: U.S. Retail Sales of Private Label Carbonated Beverages by sub-category, 1998-2002
  
• Table 2-4: U.S. Retail Sales of Private Label Chocolate Candy, 1998-2002
  
• Table 2-5: U.S. Retail Sales of Private Label Seasonal Chocolate Candy, 1998-2002
  
• Coffee Sales See Dramatic Growth in Shrinking Overall Market
  
• Table 2-6(a): U.S. Sales of Private Label Coffee Products: Additives, Ground, Ground Decaffeinated, 1998-2002
  
• Table 2-6(b): U.S. Sales of Private Label Coffee: Instant, Whole Bean, 1998-2002
  
• Cold Cereal Makes Comeback
  
• Table 2-7: U.S. Sales of Private Label Cold Cereal, 1998-2002
  
• Figure 2-2: U.S. Sales of Private Label Cold Cereal, 1998-2002
  
• Private Label Cookie Sales Down to $577 Million
  
• Table 2-8: U.S. Sales of Private Label Cookies, 1998-2002
  
• Figure 2-3: U.S. Sales of Private Label Cookies, 1998-2002
  
• Cottage Cheese Sales Grow Modestly
  
• Fresh Bread Continues to Expand Market Share
  
• Table 2-9: U.S. Sales of Private Label Cottage Cheese, 1998-2002
  
• Figure 2-4: U.S. Sales of Private Label Cottage Cheese, 1998-2002
  
• Table 2-10: U.S. Sales of Private Label Fresh Bread, 1998-2002
  
• Frozen Dinners Sales Still Growing - Reach $169 Million in 2002
  
• Table 2-11: U.S. Sales of Private Label Frozen Dinners, 1998-2002
  Frozen Juices
  
• Table 2-12(a): U.S. Sales of Private Label Frozen Juices: Apple, Blend, Cocktail Mixes, 1998-2002
  
• Table 2-12(b): U.S. Sales of Private Label Frozen Juices, 1998-2002
  
• Table 2-12(c): U.S. Sales of Private Label Frozen Juices, 1998-2002
  
• Hot Cereal Sales Reach $214 Million
  
• Table 2-13: U.S. Sales of Private Label Hot Cereal, 1998-2002
  
• Figure 2-5: U.S. Sales of Private Label Hot Cereal, 1998-2002
  
  
  
• Margarine
  
• Table 2-14: U.S. Sales of Private Label Margarine, 1998-2002
  
• Flavored Milks Only Growing Product in Milk Category
  
• Table 2-15(a): U.S. Sales of Private Label Milk Products by Product Type, 1998-2002
  
• Table 2-15(b): U.S. Sales of Private Label Milk Products by Product Type, 1998-2002
  
• Sales of Natural Cheese Reach $2.23 Billion
  
• Table 2-16(a): U.S. Sales of Private Label Natural Cheese,
  1998-2002)
  
• Table 2-16(b): U.S. Sales of Private Label Natural Cheese,
  1998-2002
  
• Non-Chocolate Candy
  
• Table 2-17(a): U.S. Sales of Private Label Non-Chocolate Candy, 1998-2002
  
• Table 2-17(b): U.S. Sales of Private Label Non-Chocolate Candy, 1998-2002
  
• Table 2-17(c): U.S. Sales of Private Label Non-Chocolate Candy, 1998-2002
  
• Refrigerated Breakfast and Dinner Entrees
  
• Table 2-18(a): U.S. Sales of Private Refrigerated Entrees,
  1998-2002
  
• Table 2-18(b): U.S. Sales of Private Refrigerated Entrees,
  1998-2002
  
• Refrigerated Lunch Sales Dwindling Fast
  
• Table 2-19: U.S. Sales of Private Label Refrigerated Lunches,
  1998-2002
  
• Figure 2-6: U.S. Sales of Private Label Refrigerated Lunches,
  1998-2002
  
• Modest Growth in Sour Cream Category
  
• Table 2-20: U.S. Sales of Private Label Sour Cream, 1998-2002
  
• Figure 2-7: U.S. Sales of Private Label Sour Cream, 1998-2002
  
• Yogurt Sales Grow Dramatically to $392 Million
  
• Table 2-21: U.S. Sales of Private Label Yogurt and Yogurt Drinks 1998-2002
  
• Factors to Market Growth
  
  
• Projected Market Growth
  
  
• Table 2-22: U.S. Sales of Private Label Food and Beverage Products, 2003-2007
  
• Figure 2-8: U.S. Sales of Private Label Food and Beverage Products, 2003-2007
  
• Bottled Water
  
• Table 2-23: U.S. Sales of Private Label Bottled Water, 2003-2007
  
• Carbonated Beverages
  
• Table 2-24: U.S. Sales of Private Label Carbonated Beverages, 2003-2007
  
• Chocolate Candy
  
  
  
• Table 2-25: U.S. Sales of Private Label Chocolate Candy, 2003-2007
  
• Coffee
  
• Table 2-26: U.S. Sales of Private Label Coffee, 2003-2007
  
• Cold Cereal
  
• Table 2-27: U.S. Sales of Private Label Cold Cereal, 2003-2007
  
• Cookies
  
• Table 2-28: U.S. Sales of Private Label Cookies, 2003-2007
  
• Cottage Cheese
  
• Table 2-29: U.S. Sales of Private Label Cottage Cheese, 2003-2007
  
• Fresh Bread
  
• Table 2-30: U.S. Sales of Private Label Fresh Bread, 2003-2007
  
• Frozen Dinners
  
• Table 2-31: U.S. Sales of Private Label Frozen Dinners, 2003-2007
  
• Frozen Juices
  
• Table 2-32: U.S. Sales of Private Label Frozen Juices, 2003-2007
  
• Hot Cereals
  
• Table 3-33: U.S. Sales of Private Label Hot Cereals, 2003-2007
  
• Margarine
  
• Table 2-34: U.S. Sales of Private Label Margarine, 2003-2007
  
• Milk
  
• Table 2-35: U.S. Sales of Private Label Milk, 2003-2007
  
• Natural Cheese
  
• Table 2-36: U.S. Sales of Private Label Natural Cheese, 2003-2007
  
• Non-chocolate Candy
  
• Table 2-37: U.S. Sales of Private Label Non-Chocolate Candy,
  2003-2007
  
• Refrigerated Entrees
  
• Table 2-38: U.S. Sales of Private Label Refrigerated Entrees,
  2003-2007
  
• Refrigerated Lunches
  
• Table 2-39: U.S. Sales of Private Label Refrigerated Lunches,
  2003-2007
  
• Sour Cream
  
• Table 2-40: U.S. Sales of Private Label Sour Cream, 2003-2007
  
• Yogurt
  
• Table 2-41: U.S. Sales of Private Label Yogurt, 2003-2007

Chapter 3: The Consumer

• More Consumers Turning to Private Label
  
• Nutritional Value Less Crucial
  
• Toward Building Loyalty
  
• Table 3-1: A Demographic Snapshot of the Private Label Buyer
  
• Factors That Influence Private Label Purchases
  
• Targeting Ethnic Shoppers
  
• The Products That Count
  
• Figure 3-1: Percentage of Shoppers Who Select Private Label or National Brand Products

The Private Label Consumer

• Simmons Data on Private Label Foods and Beverages
  
• Table 3-2: Percent of Consumers Who Use Private Label Food and Beverage Products by Product Type, January 2002-September 2002
  
• Dairy (Cream Cheese, Sour Cream and Cheeses)
  
• Table 3-3: Demographic Characteristics Favoring Purchase of Cheeses: Cream Cheese, Sour Cream
  
• Table 3-4: Demographic Characteristics Favoring Purchase of Cheeses: American Cheese, Other Cheeses
  
• Cookies
  
• Table 3-5: Demographic Characteristics Favoring Purchase of Cookies
  
• Cereals
  
• Table 3-6: Demographic Characteristics Favoring Purchase of Cereals: Cold Cereals v. Hot Cereals
  
• Margarine and Butter
  
• Table 3-7: Demographic Characteristics Favoring Purchase of Margarine and Butter:
  
• Carbonated Beverages
  
• Table 3-8: Demographic Characteristics Favoring Purchase Carbonated Beverages: Cola vs. Other Regular Carbonated Beverages
  
• Table 3-9: Demographic Characteristics Favoring Purchase of Carbonated Beverages: Diet Cola vs. Other Diet or Sugar Free Carbonated Beverages
  
• Juices
  
• Table 3-10: Demographic Characteristics Favoring Purchase of Orange Juice and Other Fruit Juices

Chapter 4: Market Dynamics

• Retailers and Manufacturers
  
• Challenging the Big Names
  
• Behaving Like the Big Names
  
• Store Brands Go Premium
  
• Retailers See Growth in Organic
  
• Courting the Hispanic Market
  
• Table 4-1: U.S. Retail Sales/Market Shares of Select Products; Leaders and Private Label, 2002

Competitive Profiles: Retailers

• Albertson’s, Inc. (Boise, Idaho)
  
• Company Overview
  
• Streamlining Operations and Opening New Markets
  
• Albertson’s Private Labels
  
• A New Premium Line
  
• BJ’s Wholesale Club (Natick, Massachusetts)
  
• Company Overview
  
  
• Private Label at BJ’s
  
• Costco Companies (Issaquab, Washington)
  
• Company Overview
  
• Costco Private Label
  
• Harris-Teeter (Charlotte, North Carolina)
  
• Company Overview
  
• Private Label Dynamism
  
• Kmart (Troy, Michigan)
  
• Company Overview
  
• Kmart History of Private Label Goods
  
• Kroger Co. (Cincinnati, Ohio)
  
• Company Overview
  
• A Leader in Private Label
  
• Safeway Stores (Pleasanton, California)
  
• Company Overview
  
• Integration of group through Private Label
  
• A Role Model for Private Label Retail
  
• Target Corporation (Minneapolis, Minnesota)
  
• Company Overview
  
• Private Label at Target
  
• Boosting Food Sales
  
• Trader Joe’s (Monrovia, California)
  
• Company Overview
  
• Gourmet Goods at Low Prices
  
• Wal-Mart (Bentonville, Arkansas)
  
• Company Overview
  
• Wal-Mart: Brand of Brands?

Competitive Profiles: Private Label Manufacturers

• Bake-Line Group LLC (Oakbrook Terrace, Illinois)
  
• Company Overview
  
• George Soros Backs Bake-Line’s expansion
  
• Cliffstar Corporation (Dunkirk, New York)
  
• Company Overview
  
• Disappointing Acquisition of Northland’s Private Label Wing
  
• ConAgra Foods (Omaha, Nebraska)
  
• Company Overview
  
• Year-on-Year Success
  
• ConAgra Brands
  
• Cott Corporation (Toronto, Canada)
  
• Company Overview
  
• Malt-O-Meals (Minneapolis, Minneapolis)
  
• Company Overview
  
• Private Label at Malt-o-Meals
  
• Ralcorp Holdings (St. Louis, Missouri)
  
• Company Overview
  
• Growing Through Acquisitions
  
• Schreiber Foods, Inc. (Green Bay, Wisconsin)
  
• The World of Cheese
  
• Growth Through Acquisition

Chapter 5: New Products and Product Trends

• Consumer Products Segment
  
• Different Private Label Markets
  
• Evolution of the Market
  
• Why The Change?
  
• Product Breakouts and Failures
  
• Food
  
• Bakery
  
• Candy
  
• Seasonal Candies Fall Short
  
• Cereal
  
• Dairy
  
• Eggs Show Promise
  
• Sour Cream A Highlight
  
• Frozen Meals Heat Up Private Label
  
• Refrigerated Meals
  
• Beverage Categories
  
• Bottled Juices
  
• Bottled Water
  
• Carbonated Beverages
  
• Coffee
  
• Milk

Chapter 6: Distribution and Retail Overview

• Two Distinct Supply Chains in Private Label
  
• Conventional Retail Distribution
  
• Developments in the Traditional Supply Chain
  
• Private Label E-procurement
  
• E-Commerce DSD Opportunities Provide Retailers and Manufacturers With Profit Growth
  
• Distribution Refinements Could Bring Increased Profits
  
• Larger Retailers Demand More From Manufacturers
  
• Food Brokers
  
• Many Different Kinds of Private Label Retailers
  
• Store Brand, Store Loyalty
  
• New Customers for Private Labelers
  
• Retailers Know More About Consumers

Chapter 7: Trends and Opportunities

• General Growth Trends
  
• Diversify Product Lines
  
• Offer a Variety
  
• Give It Away (or at Least a Taste)
  
• Rethink The “Typical” Customer
  
• Take Private Label Competition Seriously

Abstract

But this picture is changing, and consumers are showing a much greater willingness to buy private label, and at the same time a new kind of offering has appeared in a significant number of food and beverage categories: the premium quality private label product. By offering higher quality products, but with the same value pricing, private label marketers have had great success luring consumers away from the national brands, and toward the private label goods they would once have snubbed. The result is a win-win situation for retailers: increasing prices drives sales in products for which advertising expenditure is either zero or very small, and which offer a considerably higher margin.

The U.S. Market for Private Label Foods and Beverages, a new report from Packaged Facts, examines the market factors driving the growth in private label to $118 billion in 2002. The report analyzes shifting demographic and economic factors that are creating a more hospitable environment for private label marketers - and creating new challenges for "name brand" marketers that are witnessing their foothold in the market slip.

Report Methodology
The information in The U.S. Market for Private Label Food and Beverages is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the private label food and beverage market and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived mass merchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for fall 2002. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd.

The report looks at every segment of the private label food and beverage market, examining trends for growth and projecting sales of products through 2007. It analyzes consumer demographics and their current and projected impact on sales of private label products. It provides up-to-date competitive profiles of manufacturers and distributors of marketers of store brand products - including a look at smaller, up-and-coming companies - and discusses the influence of demographic trends as a driver of retail trends. The report also spotlights new products and current distribution trends, and offers readers trends and marketing opportunities within the private label food and beverage industry.

What You’ll Get in this Report
The U.S. Market for Private Label Foods and Beverages is a brand-new report that offers a unique perspective on the burgeoning market for private label foods and beverages. No other market research report provides both the comprehensive analysis and extensive data that The U.S. Market for Private Label Foods and Beverages offers. The report addresses the following segments:

• The Market (including market size and composition, and projected market growth)
• The Marketers (including discussions of specific marketer brand and market shares)
• Competitive Profiles (of the mainstream private label marketers, specialists and up-and-coming niche players, and analyses of the products they market)
• Retail and Distribution Strategies
• The Consumer (who’s buying what, and where)
• The Products
• Trends and Opportunities

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

How You Will Benefit from this Report
If your company is already competing in the private label food and beverage market, competes against store brands, or is considering making the leap into the business, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for private label products, as well as projected sales and trends through 2007. Contributing to that understanding will be a complete analysis of sales data from IRI and other published and trade sources, a detailed discussion of the consumer for private label products based on Simmons data.

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for private label products
• Research and development professionals stay on top of competitor initiatives and explore demand for products in the private label arenas.
• Advertising agencies working with clients in private label food and beverage industries to help understand the product buyer to develop messages and images that compel consumers to purchase these products.
• Business development executives understand the dynamics of the market and identify possible partnerships.
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

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