Snack World - August 2014 - (Page 27)

PRIVATE LABEL Beyond the Brands Many retailers are no longer just matching but offering superior private label snacks that rival national brands. BY SUSAN MALOVANY I t's no longer the little fish swimming in the big pond. Private label snacks definitely have joined the mainstream, and they're swimming upstream with the current. In fact, more consumers are purchasing private label (store brand) products this year compared to last year, according to a recent study by Louisville, CO-based research firm Market Force Information of more than 6,200 consumers. The study showed that 98% of shoppers purchase private label food items or cleaning products at least some of the time, on the rise from 96% in 2013. That's a lot of people buying store brands this year - almost everyone. The study also revealed that the percentage of consumers who sometimes opt for private label is up 1% from 2013, as are the number of shoppers who always reach for private label. And in the snack arena, manufacturers wholeheartedly agree with the numbers. "All our private label customers are doing well on a year-to-year basis, showing gains in the 5% range on average," noted Rex Parrott, president and COO of Wyandot Inc., Marion, OH, which produces a full line of cornbased snacks for grocery retailers. Price may initially draw consumers to store brands, obviously, but that this isn't what keeps them coming back for more. "Unless the quality of the private label offering meets customers' expectations, repeat sales will not occur," Mr. Parrott said. Mark Singleton, vice-president of sales and marketing, Lima-OH based Rudolph Foods, which manufactures private label pork rinds, cracklins, onion rings and popcorn for some of the largest retailers in the nation, reported that sales are up, up, up. "Private label pork rinds are doing great, up 5.6% for the last 52 weeks and up 12.7% for the last four weeks," he explained. "The category [as a whole] is only up 2.5% and 5.6%, respectively. Private label is gaining share and sales in pork rinds." The reasons for the increase in sales of store brands are not surprising for Mr. Singleton. "The quality is great, and there are seasonings that give consumers a wonderful variety of options when choosing their snack foods," he noted. "Additionally, the retailer is putting the items in great locations on store shelves, front and center, for the consumer's eye to be drawn to immediately." PRIVATE LABEL'S DYNAMIC GROWTH With snacks such as chips and pretzels, private label is also picking up steam. In fact, of the 10 largest branded salted snack producers, only the Kellogg Company, Battle Creek, MI, gained market share in the 52 weeks ending Sept. 8, 2013, according to Rockville, MD-based research firm Packaged Facts, in its November 2013 report "Salty Snacks in the US." Marketers of private label snacks, on the other hand, saw their dollar sales grow by 6.3% www.sfa.org August 2014 Snack World 27

Table of Contents for the Digital Edition of Snack World - August 2014

Snack World - August 2014
Table of Contents
Letter from SFA - Reach Out to Your Rep
News - NPD gives latest gluten-free insights
Mintel predicts the hot ingredient trends
SFA offers salary and benefits survey
Supplier Insight - Change is Inevitable
Government Affairs - Key Nutrition Issues in Washington
Education - Education with Top Value ROI
ELF Preview - Building a Stronger Leadership
Business Member Profile - Evolution of Success
Associate Member Profile - Keeping Pace with a Changing Industry
Private Label - Beyond the Brands
Stepping up store brand sales
Products & Services
Ad Index

Snack World - August 2014