Latest news with #privateLabel
CBC
01-08-2025
- Business
- CBC
Should supermarket chains be allowed to sell their own private-label booze?
Ontario alcohol producers are urging Ford to say no to so-called private-label booze products, such as Costco branded wine and spirits. CBC's Lorenda Reddekopp explains why.
Yahoo
18-07-2025
- Business
- Yahoo
Gen Z forecast to become most loyal purchasers of private label
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: By mid-2026, Gen Z is projected to spend more on private label brands than other generations, according to a new report from Numerator. By that time, Gen Z is project to spend 18.4% of their consumer packaged goods and general merchandise budget on private label brands, outspending baby boomers (18.3%), millennials (17.5%) and Gen X (17.2%). Private label products from brands and retailers like Ulta Beauty, Wild Fable, Trader Joe's and Costco's Kirkland Signature are popular among Gen Z shoppers, per the report. Though Gen Z consumers are forecast to spend more on private label, the cohort has concerns about quality, retailer trust, packaging and design of such brands, according to the report. Dive Insight: Though Gen Z previously had hesitation around buying private label products, their budgets and changing perception of store brands are driving an increased consumption of items the category. The category is opening the door for younger consumers to obtain affordable luxuries, per the report. Beyond the lower prices that private label brands offer, Gen Zers are associating these brands with 'innovation, trendiness, and premiumization,' according to Numerator. 'In a retail landscape shaped by economic headwinds, generational turnover, and changing definitions of value, private label brands are emerging not only as budget-friendly alternatives but also as reflections of consumer values,' Numerator said in its report. 'And at the forefront of this shift is Generation Z.' Other research indicates that consumers overall are increasingly seeking store brands. Last year, private label brand sales reached a record high of $271 billion, according to Circana data cited by the Private Label Manufacturers Association. While national brand sales rose 1% last year compared to 2023, private label sales saw a 3.9% bump during that period. Inflation is one of several factors driving price-conscious consumers to purchase private-label products, according to another Circana study. Gen Z and younger millennials are leading the way with trying owned labels for the first time. As shoppers warm to store brand products, major retailers have introduced their own private label brands for a range of merchandise. Kohl's and Macy's have debuted their own home goods brands this year, Lowe's recently introduced its Lowe's Essentials brand featuring items that sell for under $10. Meanwhile, Dollar General announced a plan to add around 100 new private brand products to its lineup, with a focus on its Clover Valley label. Walmart this week announced the debut of a private label apparel brand for tweens, dubbed Weekend Academy, wherein most products are priced below $15. Recommended Reading Millennials, Gen Z to spend the most on Halloween, study says Sign in to access your portfolio
Forbes
14-07-2025
- Business
- Forbes
Del Monte Bankruptcy A Harbinger As Consumers Flock To Store Brands
Del Monte Bankruptcy A Harbinger As Consumers Flock To Store Brands The store brand juggernaut triggered by pandemic-era inflation and economic uncertainty has passed a tipping point with consumers and may have claimed its first national brand victim. A recent First Insight survey finds that 37% of shoppers now trust the quality of cheaper (and more profitable) private label goods ABOVE national brands. Another 47% consider store brand products to be AS GOOD AS the legacy brand versions. To paraphrase Shakespeare, ketchup by any other name is still ketchup. Retailers have gotten smart; consumers have gotten wise. As we reported here last year, cash-strapped Gen Z-ers have been leading this trend—more than half choose where to shop based on store brands. Many younger shoppers have no problem buying knockoffs of fashion brands. Now the latest survey finds the shift has extended to high-income consumers—61% said they trust store brands over national brands. Ominously, for the traditional consumer packaged goods (CPG) industry is the recent First Insight finding that more than 70% of those surveyed were unable to recognize a private label when comparing side-by-side images of store and national brand products. Shoppers are buying store brands even if they don't realize it. As trust in store brands has increased, national brands have been losing it. According to a recent food and beverage survey by Ernst & Young, more than 40% of respondents believe 'product innovations' by national brands are 'merely disguised cost-reduction measures,' such as shrinking package sizes. Put it all together and it becomes clear that traditional brand awareness is becoming murky, brand loyalty is fading, and brand equity is shrinking. According to the Private Label Manufacturers Association, private label sales rose by nearly 4% last year to a record $271 billion. Although store brand unit sales grew modestly (2%) since 2021, during the same period national brand unit sales fell by almost 7%. National brands—those household names that have dominated grocery shelves for so long—face a daunting challenge, especially when the price spread is as large as it is on many items. How much longer can a box of famous-name cereal retail for $4 when the identical product and package size of store brand is $3? The gap apparently proved to be too much for Del Monte Foods, whose products include venerable brands like College Inn broths and Contadina canned tomatoes. The 138-year-old company filed for bankruptcy last week citing declining demand. The private label insurgency extends far beyond groceries and other consumables. Amazon was early and aggressive with its extensive line of essentials under the Amazon Basics brands. Walmart has apparel brands like George (men's shoes and clothing), and Athletic Works (activewear for men, women, and children). The latest wrinkle in this developing conflict is the allegation by Lululemon that Costco is poaching off its reputation and intellectual property with a knockoff line sold under its Kirkland private label. According to a recent report in The Wall Street Journal, 'some Lululemon shoppers say that they now want bargains, not brand names.' If there is a limit to the store brand movement, we are unlikely to reach it anytime soon. In fact, the retail industry's leaders are rewriting the rules of engagement. Large global chains have become much more aggressive about controlling the supply side. For example, Walmart purchased Vizio, a maker of flat-screen televisions (a commodity product in every discount department store); and Home Depot recently purchased SRS Distribution, a building products distributor. This all leads to a need for companies of all types (Retailers, Brands, Manufacturer's, Auto, Tech, etc) to understand what consumers are willing to do to switch, their optimal costs and how they feel about private brands versus branded. Super exciting times for some.
Yahoo
10-07-2025
- Business
- Yahoo
Conagra forecasts annual profit below expectations
(Reuters) -Conagra Brands forecast annual profit below expectations on Thursday, anticipating higher costs of ingredients due to U.S. tariffs, softer demand for its pantry staples and increased private label competition. The packaged food company expects its adjusted profit per share to be between $1.70 and $1.85 for fiscal year 2026, compared with analysts' average estimate of $2.19, according to data compiled by LSEG.
Forbes
07-07-2025
- Business
- Forbes
How To Protect Your Brand From Rising Ingredient Costs In 2025
Eran Mizrahi is the CEO and cofounder of Source86, a natural ingredients importer. With the proposed U.S. tariff hikes to Mexico, Canada (25%) and China (10%), a number of American consumers are stocking up on foreign goods. But that's only one way for clean- and private-label food companies to protect their brands. Let's take a look at other methods we've learned in the past decade. The Ripple Effect Of Tariffs On Ingredients Given the concentrated nature of global ingredient supplies, the proposed tariffs could hit food manufacturers particularly hard. Reformulation isn't always an option for clean-label brands committed to specific ingredient origins, in which case costs may need to be absorbed. Private-label brands face a different challenge: Their value proposition depends on competitive pricing. But with key ingredients potentially facing tariffs, maintaining those low price points becomes increasingly tricky. Here are a few examples of key ingredients that could be affected: • China: China is one of the largest global exporters of garlic, ginger and Vitamin C. • Mexico: Mexico is the largest global exporter of avocados, the largest exporter to the U.S. for tomatoes and a major exporter of bell and chili peppers. • Canada: Canada is the largest global exporter of canola oil and one of the top five export countries for wheat. It also provides 73% of the world's maple syrup production. These ingredients are integral to many clean-label and private-label food brands, and the tariffs could make them pricier, slow down imports, increase paperwork and complicate logistics. Some brands weathered a similar storm during the 2018 trade war with early pivots. I believe the lessons they learned are even more important today. Five Ways Clean-Label Brands Can Navigate 2025 Clean-label products promise high-quality (often imported) natural ingredients. So, how can your clean-label brand preserve its reputation and product integrity when higher tariffs threaten this promise? Here are five strategies to consider: 1. Diversify ingredient suppliers. Don't put all your eggs in one (import) basket. Explore alternative sourcing regions to reduce reliance on tariff-heavy markets. 2. Build inventory buffers. Stockpile key ingredients to protect against sudden price hikes or shortages. You can also use an inventory management system to help you avoid waste. 3. Optimize product formulations. Experiment with alternative ingredients that maintain quality while reducing costs. For example, consider local substitutes for imported spices or proteins. 4. Invest in supply chain agility. Use forecasting tools to anticipate disruptions and build flexibility into your logistics and sourcing plans so you can quickly pivot. 5. Speak to your customers. In my experience, today's consumers value honesty. Inform them about rising costs and how your brand is working to champion quality assurance and value. Private-Label Brands: Staying Affordable And Reliable Private-label brands, often trusted to deliver value, could face a tricky time as tariffs increase. Here's how your brand can adapt while maintaining affordability: 1. Reevaluate supplier relationships. Build connections in regions with fewer tariff impacts. 2. Negotiate long-term contracts. Lock in pricing agreements with suppliers to shield your brand from market fluctuations. 3. Strengthen inventory strategies. Maintain buffer stocks for essentials like soy protein and spices; this can help you ensure production continuity. 4. Refine pricing strategies. Consider introducing tiered pricing options. In my experience, this can be a win-win, attracting cost-conscious buyers while preserving margins. 5. Enhance consumer loyalty. Be up-front about challenges with your customers, emphasizing your efforts to maintain affordability without compromising quality. Turning Disruption Into Opportunity While the new changes could disrupt global food and agricultural trade, I believe this can also be the perfect time to innovate and strengthen your brand's ingredients supply chain. Here are two methods to consider: • Explore local sourcing. In my experience, while tariffs may complicate global trade, they can create openings to work with local producers. This can help you reduce costs, shorten supply chains and appeal to sustainability-conscious consumers. • Invest in technology. Consider adopting AI forecasting and blockchain tools; these can allow you to improve your supply chain visibility and efficiency as well as respond to disruptions in real time. Taking The Long View Rising ingredient costs could be challenging for clean-label and private-label brands alike. However, the new tariffs may also provide opportunities for brands to adapt and grow. It may not be easy, but I believe that with thoughtful planning, clear communication and a willingness to pivot, your company can navigate these changes and emerge even stronger. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
