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What’s Next for Private Label?

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SearchWhat’s Next for Private Label?LoginSubscribeLoginSubscribeRetailer NewsCompany NewsMergers & AcquisitionsCategory NewsBeveragesCBD/HempFoodserviceFuelsGeneral Merchandise/HBCSnacks & CandyTechnology/ServicesTobaccoDataTop 202 Convenience Store ChainsMystery Shop ResultsCategory Management HandbookThe State of FoodserviceSpecial ReportsGreat Coffee ProgramsHot Markets for C-StoresRetail Leader of the YearThe Future of FuelsC-Suite in the Hot SeatStore DesignIndie InfluencersSustainability Outlook 2025View AllResourcesCSP MagazineConvenience Store ProductsPodcastsWebinarsDownloadable ReportsNewslettersAdvertiseContact UsEvents & CommunitiesConvenience Retailing UniversityOutlook LeadershipC-StoreTECC-Store WomenAll MeetingsSocialFollow on XFollow on FacebookFollow on LinkedInFollow on Instagram×EditKraft Heinz pauses plans to split into 2 companiesMeasure introduced to make SNAP pilot program permanent7-Eleven selects 26 emerging brands for 2026 Brands With Heart programProtein-packed brands and Aldi’s private labels lead growth in CPGSheetz rewards loyal customers with free ‘canny pack’ coolerGeneral Merchandise/HBCWhat’s Next for Private Label?Study shows which channels are winning, which are losing Nov. 03, 2016 FacebookTwitterLinkedInCHICAGO -- Cost-conscious consumers, stepped-up innovation and distribution gains provided a lot of momentum for private-label brands in the early 2000s; however, the stronger economy, falling food prices and the maturation of some important private-label sectors are putting the squeeze on this momentum, which has stalled in the past five years and even began to decline in 2015, according to Private Label: The Journey to Growth Along Roads Less Traveled, an IRI Times & Trends report.

“Relying on distribution to drive consistent growth is no longer feasible, and we’re seeing this in recent growth and share changes,” said Susan Viamari, vice president of thought leadership for IRI. “Private label is entering the next phase of its evolution, and there is significant opportunity for retailers if they invest the time and resources needed to raise their private-label game.”

The past year has seen some shifts in channel-level private-label trends, the report said. Grocery, club and convenience-store channels were able to maintain solid footing—even slight growth—in private-label share, supported by careful expansion of product assortment across food and beverage and non-food ranges; however, private label lost ground in the dollar-store channel due to strong pricing headwinds. And the drug-store channel struggled to maintain private-label unit share, losing ground across private-label edibles, including candy, bottled water and cookies, the report said.

Retailers and private-label manufacturers are looking for opportunities to build momentum, IRI said, and they are making some progress. While several carbonated beverages and energy drinks have seen flat, or declining, private-label performance during the past year, retailers are placing more emphasis on expanding their private-label beverage benefits beyond simple thirst quenching. By delivering against sought-after benefits, such as nutritional enhancement, workout recovery and energy enhancement, emerging private-label categories—liquid drink enhancers, bottled water and coffee—have seen private-label share jump.

Striking the right balance between private label and name brands is the key to successfully providing a solid value proposition and a positive shopping experience for consumers, the report said. National brands drive traffic and variety, and manufacturers continue to excite consumers with innovative new products that are backed up by essential marketing programs.

On the other hand, private-label brands are critical to a retailer’s value image, supporting margin and profitability, according to IRI. And when used effectively, private-label products offer exclusivity and drive increased customer loyalty. Striking the balance between both offerings comes down to tailoring the product assortment and targeting customers.

Chicago-based IRI is a provider of big data, predictive analytics and insights that help CPG, over-the-counter (OTC) health care organizations, retailers and media companies to grow their businesses.

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