Consumer Demand For Private Brands Dec 2021

Private Brands 2021
CONSUMER DEMAND
FOR PRIVATE BRANDS
December 16, 2021

Executive Summary
Historically, consumers have navigated to store brand (also referred to as private brand or private label) products during
challenging economic times. Current inflation and economic uncertainty would indicate that growth of private brands
should be outpacing that of name brand products, but that’s not the case. This report provides an update on the store
brand landscape and identifies retailer opportunities to increase demand for their own brand and private brand offerings.
Changing Shape of the CPG Demand Curve

• Just as with the total market, supply challenges have negatively impacted on-shelf availability of many private brand products.
After decades of growth, private brands have lost share in recent years, including during the COVID-19 pandemic.
• Additional stimulus dollars and reallocation of household budgets due to working from home have empowered consumers to
elevate their at-home consumption, including making more premium purchases and experimenting with new flavors.
• Private Brand Loyalists tend to be older and shopping for larger households; 55% of Private Brand Loyalists have household
income >$70K.
• Shoppers loyal to private brands are more engaged in the shopping process, spending more time reading labels and they
generally enjoy grocery shopping. But Private Brand Loyalists lag Name Brand Loyalists in total dollars spent and trips.
• Top growing edible private brand categories support snacking and convenience, while hair care dominates nonedible growth.
• Representing just 18% of the U.S. CPG market, the U.S. lags private brand sales of Europe, where private brands account for
31% of the CPG market, according to BCG.
Emerging Opportunities
• The most successful store brand programs function similar to CPG companies, including retailer commitment to supporting
their brands beyond production with the four P’s, including packaging, promotions, placement and pricing.
• Store brands influence where many shoppers shop and should reflect the store’s mission and strengths and be included in
marketing and promotions.
• Search is critical to the success of private brand products. E-commerce can help boost private-label sales in various ways,
including promoting store brands after sponsored products on the opening page, and offering private label products at a discount
when preferred brands are not available.
• Private Brand Loyalists indicate that trust in the brand is a key purchase driver. Retailers should leverage trust in their most
popular products to encourage trial of other store brand options.
• Increased strategic collaboration is required to manage supply constraints, as even retailers with strong private brand programs
are also dependent on supplies of name brand products. Name brands will want to satisfy their biggest customers first, but given
current supply constraints, it’s often not enough.
• To watch: Dollar channel is growing its presence and its commitment to private brands.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 2

The Shift to At-Home Consumption, Trading Up to
Store Brand Premium Offerings, Stimulus and On-Shelf Availability Are
Share of All Factors Steering Shoppers Away From Store Brands.
Total CPG All Outlet, Total Dollar Sales and Store Brand Share
Sales Has Total Name Brand + Store Brand Dollar Sales:
Softened $828B $927B $963B
as Total
17.7% 17.3%
Store Dollar 17.5%
Store Brand
Share of Total
Sales Have
Grown Over +12%
Dollar Change
+4%
Dollar Change
the Past
Two Years
52 WE 10-6-2019 52 WE Oct-04-2020 52 WE Oct-03-2021
NATIONAL BRAND PRIVATE LABEL
Source: IRI Consumer and Shopper Insights Advantage™, Total US - All Outlets, Latest 52 Weeks Oct 3, NBD aligned
Sales Growth of Edible Private Label Products Lag Those of Name
Brands in Recent Quarters, a Shift From the Trend of Recent Years
Edible National Brands Edible Private Label
2019 2020 Q1 2021 Q2 2021 Q3 2021

Dollars
% Chg. vs. 2YA 17.2 18.4 15.5 13.7 16.0 12.2 17.8 13.5
3.2 8.3
PL $ Share 18.8% 18.8% 18.7% 18.1% 18.2%
$ Share PPT
Change vs. 2YA +0.7pt +0.2pt -0.3pt -0.5pt -0.5pt
6.3 3.4 6.2 3.8 7.6

Price/Mix* 5.4 9.1 7.2
% Change vs. 2YA 4.6
-0.3
10.2 14.5 8.8 9.5 7.8
Volume 8.7 6.4 8.0 5.8
% Change vs. 2YA
-1.3
* Dollar-weighted price per volume change across categories. Excludes perimeter. Source: IRI Mulo data ending 10/03/2021
Price / Mix Percent Change of Nonedible Private Label Is Outpacing That
of National Brands, Increasing the Value Proposition of National Brands
Nonedible National Brands Nonedible Private Label
2019 2020 Q1 2021 Q2 2021 Q3 2021

Dollars
% Chg. vs. 2YA 7.6 15.6 4.9 8.9 9.5 12.9 11.6
12.6 10.0
1.2
PL $ Share 18.9% 19.2% 19.0% 18.7% 18.7%
$ Share PPT
Change vs. 2YA +1.6pt +1.1pt +0.6pt 0.1% -0.2%
7.8 8.6 6.9 10.1 7.6 11.2

11.0 9.1
Price/Mix* 7.7 4.7
% Change vs. 2YA
6.4 1.8
Volume 7.5 3.5 0.4
% Change vs. 2YA
-6.1
-0.1 -1.9 -1.1 -0.8
* Dollar-weighted price per volume change across categories. Excludes perimeter. Source: IRI Mulo data ending 10/03/2021
Easing of Pandemic Mid-Year Illustrates Opportunity
for All Outlet Store Brands, Especially Edible
Edible Nonedible
Store Brand Dollar Share Store Brand Dollar Share
18.2% 18.3%
17.8%
17.5%
16.7%
16.4%
16.3% 16.2%
52 WE 10-6- 52 WE Oct- 52 WE Oct- 26 WE Oct- 52 WE 10-6- 52 WE Oct- 52 WE Oct- 26 WE Oct-

2019 04-2020 03-2021 03-2021 2019 04-2020 03-2021 03-2021
Source: IRI Consumer and Shopper Insights Advantage™, Total U.S. – All Outlets, NBD aligned
Store Brand Dollar Share – 52 Week,
Softening All Outlet and % Change YA
Share of Private Label Dollar Share, Q3 2021
Store Brand
% Change vs. YA for Each Generation
Dollar Sales
-0.4% -1.3% -1.0% -0.5% -0.1% 0.2%
Among 18.9%
Gen Z and 18.3%
Millennials is
17.8%
17.4% 17.5%
Contributing 16.2%
to a Lag
in Private
Brand Sales All
AllGenerations
Generation Generation Z Millennials Generation X Boomers Seniors and
Retirees
Private Label 52-week Dollar Share
Source: IRI Consumer and Shopper Insights Advantage™, Total US - All Outlets, Latest 52 Weeks Oct 3, NBD aligned
Store Brand
Who Is the Private Brand Shopper? Loyalists, relative
to Name Brand
Loyalists, tend to
Store Brand Loyalist Name Brand Loyalist have larger
57% 62%
households, lower
1-2 Person HH income, are less
67% 72%
urban, are older
No Kids homeowners and
52% 57%
are white.
Income <$70K
55% 58% Households where
private label is greater
Age <65 than 27% of total dollar
71% 77%
spend are considered
White Store Brand Loyalists:
68% 75%
Name Brand Loyalists:
Own Home <27%
37% 45% Store Brand Switchers:
>17% ― <17%
Urban Store Brand Loyalists:
>27%
Source: IRI store Brands Thought Leadership Survey, September 2021

SNAP Shoppers Appear Across
Private Brand Loyalty Segments
% of U.S. Households That Receive SNAP Benefits

by Level of Engagement With Private Brands
of U.S.
Households
of SNAP of SNAP of SNAP
households are households are households are Receive
Store Brand Switchers Name Brand
Loyalists (moving between Loyalists SNAP
Store Brands and
Name Brands) Benefits
Source: IRI Consumer Panel, 52 weeks ending Oct. 24, 2021.

Private Label F&B Dollar Sales
Total U.S. / All Outlets
20%
17%
SNAP Households Non-SNAP Households
Source: IRI Consumer Network™, Total US – All Outlets, YTD 2021 Weeks Ending 9/5/21
Store Brand Loyalists Enjoy Shopping
Name Brands Make Selection Private Label Loyalists

Simple and Easy for Are Slightly More Engaged
Name Brand Loyalists With Price
Like other shopper groups, a majority shop
with a budget, but are less likely to shop
with a budget than Name Brand Loyalists.
I Enjoy Going Grocery

Shopping Shopping Feels
+3 points higher than Switchers Overwhelming
+10 points than NB Loyal -2 points lower than Switchers Actively Searches
-7 points lower than NB Loyal
for the Lowest Price
+2 points higher than Switchers and NB Loyal
Makes Product Pays Attention

Decisions Quickly to Nutrition and Have a Budget
Comparable to Switchers and Ingredient Labels When Shopping
-6 points lower than NB Loyal +5 points higher than Switchers Comparable to Switchers;
+10 points higher than NB Loyal -4 points lower than NB Loyal
Source: IRI store Brands Thought Leadership Survey, September 2021 / Combined Survey Questions
Store Brand Loyalists Lag Name Brand
Loyalists in Dollars Spent, Store Trips
Name Brand Loyalists Are Most Valuable, Spending More Overall and Making Omnichannel Trips
All Store Brand Store Brand Store Brand Name Brand

and Name Brand TOTAL STORE All Households
Loyal Switchers Loyal
Dollars per buyer $7,644 $6,870 $7,945 $8,201
Dollars per trip $35 $33 $36 $36
Trips per buyer 216 206 220 225
For Edible, Switchers Store Brand Store Brand Name Brand

are the most valuable EDIBLE All Households
shoppers and make
the most trips. Dollars per buyer $4,817 $4,590 $5,040 $4,873
For Nonedible, Name Store Brand Store Brand Name Brand

Brand Loyalists are NONEDIBLE All Households
the most valuable
shoppers. Dollars per buyer $2,909 $2,290 $2,977 $3,490
Source: IRI Consumer and Shopper Insights Advantage™, Total U.S. - All Outlets , Latest 52 Weeks, Oct. 3, 2021, NBD aligned
SNAP Shoppers Are Also Important to Name Brands, Which Are Gaining Share
Name Brands Private Label
% Share of Dollar Sales by Eating Occasion

Beverage Snacks Dinner Breakfast Lunch Baking
87% 13% 91% 9% 77% 23% 77% 23% 75% 25% 71% 29%
Name Brands vs. Private Label, Share Change vs. YAGO
+3.1 pts +1.5 pts +2.7 pts +1.5 pts +3.8 pts +2.1 pts
Store Brands Impact Where Shoppers
Shop, Even Among Name Brand Loyalists
Shopper
Segment Store Brand Loyal
Profile:
Percentage
Who Frequently BP / Name Brand Switcher
or Always
Choose a
Retailer Based
On Store Name Brand Loyal
Brands Carried
Source: IRI store Brands Thought Leadership Survey, September 2021; Statistically significant difference between columns at the 90% confidence level
Retailers’ Private Brands Are Often a Trip Driver
Source: Voxpopme
Sales of Private Brands Are Growing in Mass and Club
Mass is Gaining More Than its Fair Share of Store Brand Edible Sales, While
Club is Gaining Disproportionately for Both Edible And Nonedible Sales
Store Brand Dollar Share

% Change, Index to Total Stores, Store Brand Shares Across Channels
Edible Nonedible
Channel,
Index Index
Store Brand Point to Point
Total Share Change Change to Total
Total Nonedible
Edible
Food 39% 49% -2.2% 95 13% -1.8% 80
Club 12% 13% 0.5% 115 20% 0.9% 149
Mass 25% 29% 0.2% 127 36% -0.3% 125
Dollar 2% 1% -0.1% 39 3% -0.5% 83
Drug 5% 1% -0.1% 37 12% -0.6% 119
Note: Private brand share of omnichannel sales. E-commerce is not listed separately because in POS data much of the e-commerce, sales
are captured in brick and mortar reporting. E-commerce is another buying avenue among standard channels, not reported as a separate channel.
Source: IRI Consumer and Shopper Insights Advantage™, Total U.S. - All Outlets, Latest 52 Weeks, Oct. 3, 2021, NBD aligned
Store Brand Loyalists Are the Key Driver of Store Brand Purchases Across
All Channels, Purchasing 30% of SB Edibles and 27% of SB Nonedibles
Store Brand Loyalists demonstrate a higher propensity to purchase private brands regardless of channel shopped.
In the drug channel, Switchers show an increased propensity to buy private brand nonedible items.
This suggests that availability and selection of store brands may be a key driver for the Store Brand Loyalist segment.
SB Share of Consumers
Geography Index to Total Household Store Brands Share for Channel
Purchasing Within Channel
Total U.S.
Edible Nonedible Edible Nonedible Edible Nonedible Edible Nonedible
by Channel
All Households NB Loyalists Switchers SB Loyalists
All Outlets 18% 16% 48 55 93 105 168 163
Mass 23% 20% 52 60 90 98 149 145
Food 17% 13% 46 54 91 98 184 179
Club 21% 25% 64 64 96 96 131 136
Dollar 6% 14% 76 75 106 108 127 130
Drug 7% 19% 73 62 110 120 153 171
Source: IRI Consumer and Shopper Insights Advantage™, Total U.S. - All Outlets , Latest 52 Weeks, Oct. 3, 2021, NBD aligned; Walmart included in Mass, Channel aggregated.
While Often Viewed as Similar, Store Brand Products Are Rarely Viewed
as Superior to Name Brands, Even Among Loyal Store Brand Buyers
Across many categories, Store Brand Loyalists are more likely than Name Brand Loyalists to perceive store brands to be
similar in quality to name brands. Slightly more Name Brand Loyalists believe Name Brands are superior relative to Store
Brand Loyalists perceiving that Name Brands are superior.
Store Brand vs. Name Brand Superiority

% Store Brand Loyalists % Name Brand Loyalists
Pet Food 6% 40% 54% Pet Food 6% 35% 58%

Laundry Detergent 6% 48% 46% Shampoo/Conditioner 6% 46% 48%
Shampoo/Conditioner 6% 49% 45% Laundry Detergent 6% 46% 49%
Salad Dressing 5% 66% 29% Salad Dressing 5% 61% 37%

Fresh Chicken 6% 75% 18% Fresh Chicken 6% 68% 26%
Salty Snacks 5% 76% 20% Salty Snacks 5% 69% 26%
Store Brand Superior SB and NB Similar Name Brand Superior Private Brand Superior PB and NB Similar Name Brand Superior
Source: IRI store Brands Thought Leadership Survey, September 2021; Statistically significant difference between columns at the 90% confidence level
Private Brands Hold Large Category Share of Perimeter Edible Categories,
and Especially General Merchandise Categories, Where Options Are Fewer
Particularly in General Merchandise, Retailers May Narrow Assortment to One Private Brand and One Name Brand
Private Label Share by Category

Year Ending Q3 2021
Edible Nonedible General Merchandise

excl. General Merchandise
Fruit - Fz 80% Anti-Smoking Products 62% Soap Dishes 85%
Pizza - Rfg 69% Toothbrush Holders 58% Disposable Tableware 83%
Pies & Cakes 66% Cotton Balls/Swabs 50% Tights 75%
Meat – Rfg 64% Hair Growth Products 49% Cups & Plates 58%
Baking Nuts 62% Moist Towelettes 49% Household Plastics 51%
Seafood - Fz 62% Bath/Body Scrubbers/Massagers 45% Paper Napkins 50%
Cheesecakes - Rfg 61% Cosmetic Storage 42% Charcoal Lighter Fluids 49%
Fresh Eggs 58% Gastrointestinal Tablets 40% Gloves 47%
Sugar 55% First Aid Accessories 39% Vacuum Bags/Belts 46%
Whipped Toppings - Rfg 53% Personal Thermometers 37% Candles 45%
Source: IRI Total U.S. Multi-Outlet + Convenience, 52-weeks ending Oct. 3, 2021
SNAP Recipients Allocate 40% or More of Their Spend on
Private Label in Key Categories
RFG Pizza Pies & Cakes RFG Meat FZ Fruit Fresh Eggs RFG Cheesecakes
FZ Seafood Baking Nuts Sugar RFG Whipped Toppings Milk Vinegar Natural Cheese
Ice Cream Cones / Butter / FZ Plain Other FZ Corn on Shortening RFG Baked
Mixes Butter Blends Vegetables Snacks the Cob & Oil Goods
Top Growing Edible Store Brand Categories
Support Snacking and Convenience
Medium / Large Categories Where Smaller Categories, But Rapid Growth in Categories
Private Label Commands Sales of >$50M Where Private Label Has Sales of <$50M
% Chg. % Chg. % Chg. % Chg.

Edible Excludes BWS, Tobacco vs. YA vs. 2YA vs. YA vs. 2YA
Dried Meat Snacks 28% 39% Other Breakfast Foods, Shelf-Stable 1113% 274%
Cheesecakes, Rfg. 21% 42% Lard 278% 106%
Liquid Drink Enhancers 20% 51% Other Foods, Fz. 275% 327%
Processed Poultry, Fz / Rfg. 19% 60% Ham, Rfg. 134% 736%
Spreads, Rfg. 19% 36% Glazed Fruit 106% 26%
Tea / Coffee, Ready-to-Drink 19% 9% Pickles / Relish, Rfg. 84% 146%
Entrées, Rfg. 18% 23% Salad Dressing, Rfg. 36% 157%
Soups / Sides / Other, Fz. 16% 54% Sports Drinks 34% 182%
Side Dishes, Rfg. 15% 27% Rice / Popcorn Cakes 28% 13%
Seafood, Rfg. 13% 43%
Pastry / Doughnuts 12% 11%
Dips, Rfg. 12% 31%
Non-Fruit Drinks, Shelf-Stable 12% 48%
Desserts, Rfg. 12% 24%
Chocolate Candy 11% 23%
Source: IRI TSV

Top Growing Nonedible Store Brand
Categories Support Haircare
Medium / Large Categories Where Smaller Categories, But Rapid Growth in Categories
Private Label Commands Sales of >$50M Where Private Label Has Sales of <$50M

Nonedible Excludes General Merch.
vs. YA vs. 2YA vs. YA vs. 2YA
Hair Conditioner 83% 196% Hair Appliances 45% 59%
Baby Gifts / Toys / Furniture 62% 131% Hair Styling Gel / Mousse 21% 18%
External Analgesic Rubs 57% 110% Other Health Remedy Tablets 11% -4%
Shampoo 42% 67% Lip Treatment 9% 76%
Hair Accessories 26% 49% Cosmetic Storage 8% -5%
Home Health Care/Kits 25% 73% Fragrances – Women’s 7% 14%
Skin Care 17% 26%
Family Planning 13% 11%
First Aid Accessories 11% 16%
Other Grooming Supplies 9% 18%
Bath / Body Scrubbers / Massagers 9% 15%
Source: IRI TSV

Top Growing General Merchandise Categories
Reflect Uptick in Time Spent at Home
Medium / Large Categories Where LT 50M in Private Label Categories
Private Label Commands Sales of >$50M Growth Pockets

General Merchandise vs. YA vs. 2YA vs. YA vs. 2YA
Pool / Spa Chemicals 143% 67% Firelog / Fire Starter / Firewood 25% 32%
Flashlights 30% 48% Pavement De-Icing 20% 11%
Candles 26% 80% Coffee / Espresso / Tea Appliances 9% 5%
Household Plastics 24% 45% Lighters 5% 15%
Kitchen Storage 23% 45%
Socks 17% 15%
Foil Pans 14% 14%
Pet Supplies 11% 24%
Pet Treats 10% 24%
Culinary 9% 26%
Bottles 9% 23%
Source: IRI TSV

Extremely Important to Buying Decision – Top 5 Ranked Importance
Common * Response factor significantly higher than other segments
Product
PL / Name Brand
Attributes Private Label Loyalists
Switchers
Name Brand Loyalists
Rank High in
1. Taste 1. Taste 1. Taste
Product 2. Price* 2. Price 2. Price
Decision- Food and 3. Brand I Trust 3. Ingredient List 3. Brand I Trust
Beverage 4. Ingredient List 4. Brand I Trust 4. Ingredient List
Making Across 5. Prior Experience with 5. Prior Experience with 5. Flavor Variety Options
Brand Brand
Loyalty
Segments 1. Product Performance 1. Product Performance 1. Product Performance
2. Price* 2. Price 2. Price
Private brands Home 3. Brand I Trust 3. Brand I Trust 3. Brand I Trust
have an Cleaning 4. Prior Experience with 4. Prior Experience with 4. Prior Experience with
Brand Brand Brand
opportunity to 5. Packaging Portability 5. Packaging Portability 5. Packaging Portability
differentiate with
1. Product Performance* 1. Product Performance 1. Product Performance
expanded flavors 2. Brand I Trust 2. Brand I Trust 2. Price
and product Non-Prescription 3. Price 3. Price 3. Brand I Trust
attributes. Medication 4. Prior Experience with

Brand
4. Prior Experience with
Brand
4. Prior Experience with
Brand
5. Number of Symptoms 5. Number of Symptoms 5. Number of Symptoms
Addressed Addressed Addressed

Purchase Consumer Shopping Behaviors Are Fixed,
Decisions Often Regardless of Level of Loyalty to Private Brands
Occur Before
Shoppers Enter
a Store, with
Habitual Brand 85%
Decisions
Widespread
74%
55%
I usually decide what
Across Private I’m going to buy before
I get to the store
Brand and I almost always
buy brands I’ve
Name Brand bought before
Loyalists I stick to a list
when grocery
shopping

Consumers Report on Their Favorite Private Brands
Source: Voxpopme
You Can Only Get It Here: Trader Joe’s, Aldi and Lidl Are the
Store Brands Are a Trip Driver Front-Runners in Exclusive Offerings
“It isn’t just the traditional

idea of private brands as a
better value. It’s really about
private brands being
differentiated in a way that
actually provides Albertsons’ retail brands
additional value to portfolio tops 25%
consumers.” penetration
-- Ahold Delhaize CEO -- Retail Brands Institute
Kevin Holt October 2021

Store Brands Deliver Affordable Gourmet Products
That Compete Head-to-Head with Premium Brands
z
Albertsons’ Special Kroger’s Private
Reserve “top-shelf Walmart’s premium
Target’s Favorite Selection offers “next-
label” gives shoppers Aldi Specially Winemakers Selection
Day brand includes level flavor” and
an opportunity to Selected for premium of store brand wines
700 indulgent, international favorites.
discover new tastes. entertaining on feature five varietals
“crafted” items. a budget. from around the world
at $10 a bottle.

Store Brand Strategies Also Include
Health and Wellness and Sustainability
• Ahold Delhaize adheres to the Guiding Stars nutrition program and aims to have
54% of its store brands earning up to three stars by 2025.
• Ahold Delhaize extended its Nature’s Promise brand to include products free from
synthetic colors, artificial flavors, artificial sweeteners, MSG and high-fructose corn syrup.
• Kroger’s Simple Truth and Simple Truth Organic are “free from a defined list of
artificial ingredients.”
• Ahold Delhaize is removing any “chemicals of concern” from store brand nonfood
products and packaging and working toward zero-plastic waste packaging by 2025.
Packaging will be 100% reusable, recyclable or compostable.
• Albertsons touts that its Responsible Choice logo helps customers identify fresh and
frozen seafood and shelf-stable tuna products that meet the retailer’s Responsible
Seafood Policy.
• New products at CVS include sustainable options, including water in BPA-free
recyclable boxes, phthalate- and formaldehyde-free beauty products, 100% cotton
feminine care products.

Retailers Can Amplify Their Commitment to Sustainability Beyond Specific Products

The Store Brand
Becomes the Store
Petco’s Flagship Store Brand
is Getting a Flagship Store
“We’re calling it an urban

basecamp for our guests
— and new guests — to
experience the brand.”
Nick Konat
Chief Merchandising Officer, Petco
Source : https://www.forbes.com/sites/joanverdon/2021/10/28/petco-creates-experiential-retail-for-dogs-with-first-reddy-store/?sh=277419e11d2c
Store Brand Promotional Efforts
Walmart features its own brands, including

Great Value, on the first page of its e-commerce site.
As part of the myWalgreens loyalty program,

the drug chain offers additional rewards for
purchasing store-brand products, including 5%
cash back or additional savings.

Value Retailer Aldi Flips the Store Brand Script
A common retail strategy is to

use a store brand as a low price
or opening price point anchor in
a given category.
But Aldi is adding top name Shelf

brand products like Double Stuf strategy
Oreos and Cheez-Its as high
price anchors, creating an or out-of-
opportunity to increase category stock
conversion and creating
awareness of similar versions of
solution?
its own brand products.

The Size of the Private Brand Prize:
BCG Estimates that Private Brands Generate $120B in Sales Globally
Private Brands Private Brands

Represent 31% Represent 18%
of CPG Market of CPG Market
Private brands are a growth opportunity for U.S. retailers.
Source: BCG, industry sources.

• The most successful private brand programs operate like those of a CPG company.
• Private brands differentiate in the competitive retail landscape and are a trip driver. Consider
focusing on a private brand strategy and specific products that align with your retail banner
mission, e.g., health and wellness, value or premium. Build trust and loyalty with a few key
products; it will incentivize shoppers to discover additional products.
• Search is critical. E-commerce can help boost private-label sales in various ways, including
Implications promoting store brands after sponsored products on the opening page, and offering private label
products at a discount when preferred brands are not available. Consider pop-ups to promote
store brand versions of other items already in the cart, such as “you may prefer.” Also utilize
filtering to further promote private brands. Private Brand Loyalists indicate that trust in the brand
Focus on is a key purchase driver. Retailers should leverage trust in their most popular products to
encourage trial of other options. Delight key shopper targets along the discovery journey by
adding surprise store brand items to delivery or pickup orders.
Retailer • Name brands will want to satisfy their biggest customers first, but given current supply
constraints, it’s often not enough. Private brands are encountering many of the supply and
logistical issues as name brands and in some cases even more as their manufacturers juggle
Banner production demands of multiple retailers. This is a time for retailers to strengthen strategic
collaboration separately with branded manufacturers and private brand manufacturers to define
strategies to meet shoppers’ product needs.
Mission • To watch: Dollar channel is growing its presence and its commitment to store brands.
• Among Trader Joe’s biggest assets are its store associates who act as brand ambassadors.
Provide tips to your in-store associates and create online tags that identify products as an
“associate pick.”
• In-store experience, particularly merchandising, can encourage purchase. Promote store brands
alongside name brands, often in a complementary way, or online as part of a recipe, or routinely
bundle a combination of store brand products to create meal solutions. Offer discounts for
multiple store brand purchases.
• Private brand product development is a relatively long process. This is a critical time to
understand shoppers and meet them where they are with the right products to differentiate and
protect retail turf.

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Private Brands 2021

December 16, 2021

Changing Shape of the CPG Demand Curve

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2019 2020 Q1 2021 Q2 2021 Q3 2021

PL $ Share 18.8% 18.8% 18.7% 18.1% 18.2%

6.3 3.4 6.2 3.8 7.6

2019 2020 Q1 2021 Q2 2021 Q3 2021

PL $ Share 18.9% 19.2% 19.0% 18.7% 18.7%

7.8 8.6 6.9 10.1 7.6 11.2

52 WE 10-6- 52 WE Oct- 52 WE Oct- 26 WE Oct- 52 WE 10-6- 52 WE Oct- 52 WE Oct- 26 WE Oct-

Source: IRI store Brands Thought Leadership Survey, September 2021

% of U.S. Households That Receive SNAP Benefits

Source: IRI Consumer Panel, 52 weeks ending Oct. 24, 2021.

SNAP Households Non-SNAP Households

Name Brands Make Selection Private Label Loyalists

I Enjoy Going Grocery

Makes Product Pays Attention

All Store Brand Store Brand Store Brand Name Brand

For Edible, Switchers Store Brand Store Brand Name Brand

For Nonedible, Name Store Brand Store Brand Name Brand

Name Brands Private Label

% Share of Dollar Sales by Eating Occasion

Name Brands vs. Private Label, Share Change vs. YAGO

Store Brand Dollar Share

Club 12% 13% 0.5% 115 20% 0.9% 149

Mass 25% 29% 0.2% 127 36% -0.3% 125

Dollar 2% 1% -0.1% 39 3% -0.5% 83

Drug 5% 1% -0.1% 37 12% -0.6% 119

Food 17% 13% 46 54 91 98 184 179

Club 21% 25% 64 64 96 96 131 136

Dollar 6% 14% 76 75 106 108 127 130

Drug 7% 19% 73 62 110 120 153 171

Store Brand vs. Name Brand Superiority

Pet Food 6% 40% 54% Pet Food 6% 35% 58%

Salad Dressing 5% 66% 29% Salad Dressing 5% 61% 37%

Private Label Share by Category

Edible Nonedible General Merchandise

% Chg. % Chg. % Chg. % Chg.

Source: IRI TSV

% Chg. % Chg. % Chg. % Chg.

Source: IRI TSV

% Chg. % Chg. % Chg. % Chg.

Source: IRI TSV

attributes. Medication 4. Prior Experience with

Source: IRI store Brands Thought Leadership Survey, September 2021

Source: IRI store Brands Thought Leadership Survey, September 2021

“It isn’t just the traditional

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“We’re calling it an urban

Walmart features its own brands, including

As part of the myWalgreens loyalty program,

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A common retail strategy is to

But Aldi is adding top name Shelf

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Private Brands Private Brands

Private brands are a growth opportunity for U.S. retailers.

Source: BCG, industry sources.

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