Private Label Food and Beverages in the U.S.

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Private Label Food and Beverages in the U.S.

August 1, 2010

Private-label products continue to win the hearts, minds and shopping carts of
consumers away from their old brand favorites. Retailers have heavily invested in
developing high quality private-label foods and beverages, particularly in center store,
with equally high quality packaging and marketing plans—plans that rival and often
surpass national brands. Consumer response has been overwhelmingly positive with
near total penetration for private-label purchasing in American households (The average
American kitchen holds 20 ore more private label products), further dispelling the cheap
and generic store-brand stigma.

Consumer acceptance of private label was also seen in market growth as total dollar
sales of private-label food and beverage products grew at twice the rate of national
brand food and beverage during the 2005-2009 period. At one time, private-label
products accounted for a small share of the overall market. However, that is no longer
the case with many retailers claiming penetration rates of 25% or more of total sales.

This second edition of Private Label Food & Beverage in The U.S. analyzes the U.S.
market for foods and beverages sold under the proprietary labels of retailers, referred to
in the trade as private-label or store-brand products. The primary focus is on the mass-
market products sold through supermarkets, big box, warehouse clubs, and mass
merchandisers, but the report also examines trends affecting other food and beverage
retailers, including convenience stores, drugstores, health and natural food stores.
Included are estimates of total dollar sales, unit sales and average prices per unit for the
2005-2009 period along with forecasts for growth through 2014.

Additional Information

Market Insights: A Selection From The Report

Channel Sales of Food & Beverage

Packaged Facts estimates supermarkets and grocery stores accounted for 59% of all
food and beverage sales in 2009 with warehouse clubs and supercenters together
accounting for 20%. These two categories make up not only the bulk of all food and
beverage sales, but also private label food and beverage products. In general,
supermarkets and grocery stores have lost market share since 2005 falling from 62% of
the market. Meanwhile supercenters and warehouse clubs showed a gain of about
three percentage points from the 2005 level of 17%.
Convenience stores, including those with gas stations accounted for five percent of total
food and beverage retail sales, down from seven percent in 2005. Meanwhile food and
beverage sales through drugstores pushed the channels market share up 0.5
percentage points to nearly two percent of the total retail market in 2009.

Level of Price-Consciousness Has Not Changed

A survey of private-label consumers using data compiled by Simmons Market Research
Bureau for a basket of typical foods (bagels, crackers, orange juice, ice cream, peanut
butter, or rice/rice dishes) with typical private-label preference rates provides a basis for
some general observations about the private-label mindset. In the 2006 edition of this
report, Packaged Facts noted that private-label shoppers were price-conscious but
attitudes were shifting. The data reflected a growing interest in quality. In 2006,
expressed negatively, private-label shoppers were 10% (index of 90) less likely than
adults on average to believe that price wasn’t the most important factor to purchases.
This was a slight shift from 2004 when 13% were less likely (index of 87) than adults on
average to believe that price isn’t the most important factor to purchases. By 2009,
consumer mindsets have been little influenced by the recession in this regard. Now,
private-label shoppers are nine percent (index of 91) less likely than adults on average
to believe that price isn’t the most important factor to purchases—a mere one-point
difference from 2006. However, expect these indexes to rise more aggressively post-
recession, especially as private label quality continues to improve and shoppers
become less price-focused.

Private-Label Food Prices Grow 5%

The average price per unit increased the most in 2008, up eight percent from the 2007
level of $1.83 per unit to $1.98 per unit. National brands also posted the highest price
per unit increase in 2008, but at a lower rate of 6.5% to reach $2.24. In all, the average
price per unit for private-label foods grew at a CAGR of nearly five percent during the
2005-2009 period. By comparison, national brands posted annual growth for average
unit prices at four percent to reach $2.31. In all, Packaged Facts estimates the average
price per unit for all food products grew at four percent CAGR to reach $2.25 per unit.

Traditional Grocery Stores Losing Market Share to Specialty Retailers in Private
Label Food and Beverage Market, Report Finds

New York, July 29, 2010 — Specialty food retailers, such as Trader Joe¡¯s and Whole
Foods, have capitalized on renewed consumer interest in and acceptance of private
label foods and enjoyed greater growth in store brand product sales between 2005 and
2009 than traditional supermarkets, according to Private Label Food and Beverage in
the U.S. by market research publisher Packaged Facts.

Packaged Facts estimates private-label food and beverage dollar sales totaled $87
billion in 2009, to account for 17% of total food and beverage retail sales in the United
States. Dollar sales rose 6% over the 2008 level of $82 billion, driven primarily by a 7%
increase in the food market. Private-label beverage sales rose less than 1%. Private
label¡¯s penetration rate was at 14% of total food and beverage retail sales in the
beginning of the 2005-2009 period, but began to rise in 2007 as the economy showed
signs of slowing. Hitting 15% in 2007 set the stage for a jump in 2008 as the penetration
rate grew to 16%.

The report found that traditional supermarkets and grocery stores are losing market
share to alternative stores. Growth among traditional food and beverage retailers was
modest at a compound annual growth rate (CAGR) of 4% between 2005 and 2009.
Perhaps most notable was the growth in specialty food stores Whole Foods and Trader
Joe¡¯s, which grew at a CAGR of 14% during the 2005-2009 period. Supercenter stores
such as Walmart and Target also witnessed high growth at a CAGR of 9%. Club stores,
such as BJ¡¯s Wholesale, Costco, and Sam¡¯s Club grew slightly better than the mean
at a CAGR of 6%. At the low end, discount supermarkets, including SuperValu, Aldi,
and dollar store Dollar General saw food and beverage sales actually decline in 2009
from the level seen in 2008. Still the group managed to eke out a small five-year gain
growing at a CAGR of 2%.

¡°Private-label food and beverage have eclipsed their ignoble past of no name and
generic products with the development of new flavor varieties, enhanced product
packaging and different pack sizes, and the emergence of premium lines,¡± says Don
Montuori, publisher of Packaged Facts. ¡°Plus private labels entered into new territory
where the additional power of the retailer name and its inherent benefits are aiding
private labels to emerge as brand name. Store reputation alone may be the driving force
in the success of chains such as Trader Joe's and Whole Food Markets in attracting
more affluent consumers to the category.¡±

Private Label Food & Beverage in the U.S., from Packaged Facts, analyzes the U.S.
market for foods and beverages sold under the proprietary labels of retailers, referred to
in the trade as private-label or store-brand products. The primary focus is on the mass-
market products sold through supermarkets, big box, warehouse clubs, and mass
merchandisers, but the report also examines trends affecting other food and beverage
retailers, including convenience stores, drugstores, health and natural food stores.
Included are estimates of total dollar sales, unit sales and average prices per unit for the
2005-2009 period along with forecasts for growth through 2014.

About Packaged Facts - Packaged Facts, a division of MarketResearch.com,
publishes market intelligence on a wide range of consumer market topics, including
consumer goods and retailing, foods and beverages, demographics, pet products and
services, and financial products. Packaged Facts also offers a full range of custom
research services.

Table of Contents

Chapter 1: Executive Summary
Scope of Report
Methodology
Two Markets: Foods and Beverages
Food Market
Center Store
Frozen Food
Dairy Food
Refrigerated Food
Bakery Products
Meats, Poultry and Seafood
Beverage Market
Private-Label Food & Beverage Market Size and Growth
Total Private-Label Food & Beverage Market Near $87 Billion
Figure 1-1 Private-Label Food & Beverage Retail Sales and Share of Total Food
& Beverage Retail Sales, 2005-2009 (in billions $)
Private-Label Food Grows to $69.4 Billion
Table 1-1 Total Private-Label Food Retail Dollar and Unit Sales and Average
Price per Unit, 2005-2009 (in millions $)
Private-Label Beverages Near $18 Billion
Table 1-2 Total Private-Label Beverage Retail Sales and Average Price per Unit,
2005-2009 (in millions $, millions units)
Total Private-Label Food & Beverage to Reach $113 billion
Figure 1-2 Forecast of Private-Label Food & Beverage Retail Dollar Sales and
Share of Total Food & Beverage Retail Dollar Sales, 2009-2014 (in billions $)
Competitive Retail Landscape
Retail Environment Still Fragmented But Less So
Top Food & Beverage Market Competitors
Table 1-3 Top 20 Food & Beverage Retailers by Food & Beverage Dollar Sales,
2005-2009 (in millions $)
Figure 1-3 Food & Beverage Channel Shares by Food & Beverage Dollar Sales,
2005-2009 (%)
Alternative Formats Gaining Share
Table 1-4 Retail Store Type Food & Beverage Dollar Sales Among Top 20 Food
& Beverage Retailers, 2005-2009 (in millions $)

Consumers ¢¾ Private Label
Recession a Major Driver for Private Label Adoption
Consumer Value Shift
Young Interested in Private Label
Consumer Not Expected to Fully Return to Brands Post-Recession
Retailer Power Gives a Boost
Quality Quotient
Quality Important to Consumers
Retailers Move Away from Also-Ran Strategy
Retailer Blitzkrieg: Declutter and Takeover Shelves
Focus Away from Premium to Value
Tiers Meaningless and/or Confusing to Consumer
Pricing May Be Next Tactical Decision
Recession Saw Renewed Focus on Pricing Strategies and Tactics
The Biggest Media Spender is¡¦Walmart
Table 1-5 Advertising Spend for Selected Top Food and Beverage Retailers,
Major National Brands Promise Greater Spend
Private Label Only One Part of Improving Total Experience
Bundling and Recipes
Alternative Media Strategies Emerging
Technology Enhancing Old School Programs
Product Placement Opportunities Abound
Opportunities in Licensing
Cause Marketing Good Fit with Private-Label Grocery
Private-Label Introductions Continue to Grow
Table 1-6 Private-Label Food and Beverage Product Introductions vs. Total Food
and Beverage Introductions, 2005-2009
Private-Label Categories Move From Snack Time to Meal Time
A Trinity: Convenience, Health, and Premium
The Consumer
Private-Label Usage Preference Rates by 2009 Top 20 Categories
Table 1-7 Percentage of U.S. Adults Who Most Often Use Private Label: Top 20
Food and Beverage Categories, 2009
Strongest and Weakest Private Label Categories by 5-Year Point Change
Table 1-8 Year over Year Penetration of Selected Private Label Product
Categories, by Strongest Percentage Point Change, 2005-2009
Walmart and Supermarkets Preferred Most Overall
Supermarkets Think about Courting Younger Consumers, C-Stores Suburban
Families

Chapter 2: Overall Private-Label Food & Beverage Market
Scope of Report
Methodology
Two Markets: Foods and Beverages
Food Market

Center Store
Frozen Food
Dairy Food
Refrigerated Food
Bakery Products
Meats, Poultry and Seafood
Beverage Market
Private-Label Food & Beverage Market Size and Growth
Total Private-Label Food & Beverage Market Near $87 Billion
Figure 2-1 Private-Label Food & Beverage Retail Sales and Share of Total Food
& Beverage Retail Sales, 2005-2009 (in billions $)
Penetration within Food, Drug & Mass-Market Channels
Private-Label Food & Beverage versus Total Market
Total Food & Beverage Shows Growth at Half of Private Label
Table 2-1 Private Label Food & Beverage Retail Sales versus Total Food &
Beverage Retail Sales, 2005-2009 (in millions $)
Private-Label Food versus Private-Label Beverage
Figure 2-2 Share of Private Label Market by Food and Beverage Dollar Sales,
2005 versus 2009 (%)
Private-Label Food Sales versus Beverage
In 2009, Beverage Growth Slows with Lower Milk Prices
Center Store Drives 2009 Food Sales
Table 2-2 Total Private-Label Food Retail Dollar Sales versus Private Label
Beverage Retail Dollar Sales, 2005-2009 (in millions $)
Private-Label Food versus Branded Food
Figure 2-3 Share of Total Food Market by Private-Label and National Brand
Retail Dollar Sales. 2005 versus 2009 (%)
National Brand Food Struggles in 2008 and 2009
Table 2-3 Private Label Food Retail Sales versus National Brand Food Retail
Sales, 2005-2009 (in millions $)
Private-Label Food Unit Sales
Figure 2-4 Private-Label Food Retail Unit Sales and Average Price per Unit,
2005-2009 (in billions $)
Private-Label Food Unit Sales Growth at 4%
National Brand Unit Sales Decline 3% in 2009
Table 2-4 Private Label Food Retail Unit Sales versus National Brand Food
Retail Unit Sales, 2005-2009 (in millions units)
Private-Label Food Average Price per Unit
Figure 2-5 Private-Label Food Average Unit Price and Average Unit Price
Discount to National Brands, 2005-2009 ($, %)
Private-Label Food Prices Grow 5%
Center Store Price Increases the Most for Private Label
Bakery, Center Store Foods Lead National Brand Price Increases
Table 2-5 Private Label Food Retail Average Price per Unit versus National
Brand Food Retail Average Price per Unit, 2005-2009 (in $)
Private-Label Beverages versus National Brand Beverages

Figure 2-6 Share of Total Beverage Market by Private-Label and National Brand
Retail Dollar Sales, 2005 versus 2009 (%)
National Brand Beverages Decline in 2009
National Brand Beverages Growth Led by Coffee & Tea, Energy Drinks
Table 2-6 Private Label Beverage Retail Sales versus National Brand Beverage
Retail Sales, 2005-2009 (in millions $)
Private Label Beverage Unit Sales
Figure 2-7 Private Label Beverage Retail Unit Sales and Average Price per Unit,
National Brand Unit Sales Declines Give Up to Private Label
Carbonated Beverages Lose Out to Sports Drinks, Bottled Water
Table 2-7 Private-Label Beverage Retail Unit Sales versus National Brand
Beverage Retail Unit Sales, 2005-2009 (in millions units)
Private-Label Beverage Average Price per Unit
Figure 2-8 Private-Label Beverage Average Unit Price and Average Unit Price
Discount to National Brands, 2005-2009 ($,%)
Private Label Beverage Unit Prices Show Volatility
Private-Label Drink Mixes, Bottled Water Lead Price per Unit Increases
Table 2-8 Private-Label Beverage Retail Average Price per Unit versus Branded
Retail Beverage Average Price per Unit, 2005-2009 (in $)
Private-Label Food & Beverage Market Forecast
Total Private-Label Food & Beverage to Reach $113 billion
Figure 2-9 Forecast of Private-Label Food & Beverage Retail Dollar Sales and
Share of Total Food & Beverage Retail Dollar Sales, 2005-2009 (in billions $)
Table 2-9 Forecast of Private-Label Food & Beverage Retail Dollar Sales versus
Total Food & Beverage Retail Dollar Sales, 2009-2014 (in millions $)
Table 2-10 Forecast of Total Private-Label Food Retail Dollar Sales versus
Private Label Beverage Retail Dollar Sales, 2009-2014 (in millions $)
Looking Ahead
Simplify, Simplify, Simplify
Better Store Banner, Brand Connection
In Search of Private-Label, National Brand Equilibrium

Chapter 3: The Private-Label Food Market
Private-Label Food Grows to $69.4 Billion
Figure 3-1 Private-Label Food Retail Sales and Share of Total Food Retail Sales,
Slow Economy Boosts Private Label Food Sales
Table 3-1 Total Private-Label Food Retail Dollar and Unit Sales and Average
Private-Label Food Sales by Store Department
Center Store
Frozen Foods
Dairy Food
Refrigerated Food
Bakery Products

Table 3-2 Total Private-Label Food Retail Sales by Category, 2005-2009 (in
millions $)
Meat, Poultry, Seafood
Private-Label Food Shares by Category
Figure 3-2 Share of Private-Label Food Market by Category Dollar Sales, 2005
versus 2009 (%)
Private-Label Center Store Foods
Figure 3-3 Private-Label Center Store Food Retail Sales and Share of Total
Center Store Food Retail Sales, 2005-2009 (in millions $)
2008 a Banner Year for Private-Label Center Store
Table 3-3 Total Private-Label Center Store Food Retail Dollar and Unit Sales and
Average Price per Unit, 2005-2009 (in millions $)
National Brands at Center Store
Private-Label Center Store Products Segments
Figure 3-4 Share of Private-Label Center Store Food Category by Product
Segment Dollar Sales, 2005 versus 2009 (%)
Snacks
Table 3-4 Total Private-Label Snack Retail Dollar and Unit Sales and Average
Price per Unit 2005-2009, (in millions $)
Condiments, Sauces, Spices & Spreads
Table 3-5 Total Private-Label Condiments, Sauces, Spices & Spreads Retail
Dollar and Unit Sales and Average Price per Unit, 2005-2009 (in millions $)
Baking & Cooking Products
Table 3-6 Total Private-Label Baking & Cooking Products Retail Dollar and Unit
Sales and Average Price per Unit, 2005-2009 (in millions $)
Dinners & Side Dishes
Table 3-7 Total Private-Label Dinners & Side Dishes Retail Dollar and Unit Sales
and Average Price per Unit, 2005-2009 (in millions $)
Vegetables, Tomato Products & Beans (Canned & Dried)
Table 3-8 Total Private-Label Vegetables, Tomato Products & Beans (Canned &
Dried) Retail Dollar and Unit Sales and Average Price per Unit, 2005-2009 (in
millions $)
Breakfast Foods
Table 3-9 Total Private-Label Breakfast Foods Retail Dollar and Unit Sales and
Shelf-Stable Meats & Seafood
Table 3-10 Total Private-Label Shelf-Stable Meats & Seafood Retail Dollar and
Unit Sales and Average Price per Unit, 2005-2009 (in millions $)
Fruit (Canned, Bottled, Dried)
Table 3-11 Total Private-Label Fruit (Canned, Bottled, Dried) Retail Dollar and
Ethnic Foods
Table 3-12 Total Private-Label Ethnic Foods Retail Dollar and Unit Sales and
Candy & Gum

Table 3-13 Total Private-Label Candy & Gum Retail Dollar and Unit Sales and
Baby Foods
Table 3-14 Total Private-Label Baby Foods Retail Dollar and Unit Sales and
Private-Label Frozen Foods
Figure 3-5 Private-Label Frozen Food Retail Sales and Share of Total Frozen
Food Retail Sales, 2005-2009 (in millions $)
Private-Label Frozen Foods Sees Growth on Unit, Price Increases
Table 3-15 Total Private-Label Frozen Food Retail Dollar and Unit Sales and
Private-Label Frozen Food Product Segments
Figure 3-6 Share of Private-Label Frozen Food Category by Product Segment
Dollar Sales, 2005 versus 2009 (%)
Frozen Meat, Poultry & Seafood
Table 3-16 Total Private-Label Frozen Meat, Poultry & Seafood Retail Dollar and
Frozen Desserts
Table 3-17 Total Private-Label Frozen Desserts Retail Dollar and Unit Sales and
Frozen Vegetables
Table 3-18 Total Private-Label Frozen Vegetables Retail Dollar and Unit Sales
Frozen Dishes
Table 3-19 Total Private-Label Frozen Dishes Retail Dollar and Unit Sales and
Frozen Breakfast Foods & All Other Products
Table 3-20 Total Private-Label Frozen Breakfast Foods & All Other Frozen
Product Retail Dollar and Unit Sales and Average Price per Unit, 2005-2009 (in
millions $)
Frozen Fruit
Table 3-21 Total Private-Label Frozen Fruit Retail Dollar and Unit Sales and
Private-Label Dairy Foods
Figure 3-7 Private-Label Dairy Food Retail Sales and Share of Total Dairy Retail
Food Sales, 2005-2009 (in millions $)
Dairy Foods Show Volatile Growth
Table 3-22 Total Private-Label Dairy Food Retail Dollar and Unit Sales and
Private-Label Dairy Food Product Segments
Figure 3-8 Share of Private-Label Dairy Food Category by Product Segment
Eggs
Table 3-23 Total Private-Label Eggs Retail Dollar and Unit Sales and Average
Natural Cheese

Table 3-24 Total Private-Label Natural Cheese Retail Dollar and Unit Sales and
Cultured Dairy
Table 3-25 Total Private-Label Cultured Dairy Retail Dollar and Unit Sales and
Butter & Butter Substitutes
Table 3-26 Total Private-Label Butter & Butter Substitute Retail Dollar and Unit
Processed Cheese
Table 3-27 Total Private-Label Processed Cheese Retail Dollar and Unit Sales
All Other Dairy Foods
Table 3-28 Total Private-Label All Other Dairy Foods Retail Dollar and Unit Sales
Private-Label Refrigerated Foods
Figure 3-9 Private-Label Refrigerated Food Retail Sales and Share of Total
Refrigerated Food Retail Sales, 2005-2009 (in millions $)
More Modest Growth for Refrigerated Private Labels
Table 3-29 Total Private-Label Refrigerated Food Retail Dollar and Unit Sales
and Average Price per Unit. 2005-2009 (in millions $)
Private-Label Refrigerated Food Product Segment
Figure 3-10 Share of Private-Label Refrigerated Food Category by Product
Private-Label Refrigerated Dishes Top $3.6 Billion
Table 3-30 Total Private-Label Refrigerated Dishes Retail Dollar and Unit Sales
Lunchmeats See Growth from Price Increases
Table 3-31 Total Private-Label Lunchmeats Retail Dollar and Unit Sales and
Table 3-32 Total Private-Label Dough & Baked Goods Retail Dollar and Unit
Table 3-33 Total Private-Label All Other Refrigerated Products Retail Dollar and
Private-Label Bakery Foods
Figure 3-11 Private-Label Bakery Food Retail Sales and Share of Total Bakery
Food Retail Sales, 2005-2009 (in millions $)
Dollar Sales Higher, Unit Sales Lower
Table 3-34 Total Private-Label Bakery Food Retail Dollar and Unit Sales and
National Brands Static
Private-Label Bakery Food Product Segments
Figure 3-12 Share of Private-Label Bakery Food Category by Product Segment
Non-Sweet Bakery Food
Table 3-35 Total Private-Label Non-Sweet Bakery Food Retail Dollar and Unit

Sweet Bakery Food
Table 3-36 Total Private-Label Non-Sweet Bakery Food Retail Dollar and Unit
Private-Label Meats, Poultry & Seafood
Figure 3-13 Private-Label Meats, Poultry & Seafood Retail Sales and Share of
Total Meats, Poultry & Seafood Retail Sales, 2005-2009 (in millions $)
Private-Label Meat Growth Hits 9%
Table 3-37 Total Private-Label Retail Meats, Poultry & Seafood Sales, 2005-
2009 (in millions $)
Private-Label Meat, Poultry & Seafood Product Segments
Figure 3-14 Share of Private-Label Meats, Poultry & Seafood Category by
Product Segment Dollar Sales, 2005 versus 2009 (%)
Fresh Meat & Poultry
Table 3-38 Total Private-Label Fresh Meats & Poultry Retail Dollar and Unit
Breakfast Meats
Table 3-39 Total Private-Label Breakfast Meats Retail Dollar and Unit Sales and
Processed Dinner Meat
Table 3-40 Total Private Label Processed Dinner Meat Retail Sales, 2005-2009
(in millions $)
Fresh Seafood
Table 3-41 Total Private-Label Fresh Seafood Retail Dollar and Unit Sales and

Chapter 4: The Private-Label Beverage Market
Private-Label Beverages Near $18 Billion
Figure 4-1 Private-Label Beverage Retail Sales and Share of Total Beverage
Retail Sales, 2005-2009 (in billions $)
Slower Growth Despite Slow Economy
Table 4-1 Total Private-Label Beverage Retail Sales and Average Price per Unit,
2005-2009 (in millions $, millions units)
Private-Label Beverage Category Sales
Private-Label Dairy Beverages Show Slight Decline
Private-Label Juices Show Slight Increase
Private-Label Bottled Water Growth Slows
Table 4-2 Total Private-Label Beverage Retail Sales by Category, 2005-2009 (in
millions $)
Private-Label Coffee & Tea Nearing $1 Billion
Private-Label Drink Mixes Top $200 Million
Private-Label Sports & Energy Drinks Get Hit by Recession
Private-Label Beverage Shares by Category
Figure 4-2 Share of Private-Label Beverage Market by Category Dollar Sales,
2005 versus 2009 (%)
Private-Label Dairy Beverages
Figure 4-3 Private-Label Dairy Beverage Retail Sales and Share of Total Dairy
Beverage Retail Sales, 2005-2009 (in millions $)

Private-Label Milk Prices Show Volatility
Table 4-3 Total Private-Label Dairy Beverage Retail Sales and Average Price per
Unit, 2005-2009 (in millions $, millions units)
Private-Label Milk Declines on Lower Prices
Private-Label Cultured Dairy, Milk Substitutes on the Rise
Table 4-4 Total Private-Label Dairy Beverage Retail Sales, 2005-2009 (in
millions $)
Other Private-Label Dairy ¡°Beverages¡± Show Mixed Growth
Private-Label Dairy Beverage Shares by Product Segment
Figure 4-4 Share of Private-Label Dairy Beverage Category by Product Segment
Private-Label Non-Milk Beverages Growing in Importance
Private-Label Fruit & Vegetable Juices
Figure 4-5 Private-Label Fruit & Vegetable Juice Retail Sales and Share of Total
Fruit & Vegetable Juice Retail Sales, 2005-2009 (in millions $)
Private-Label Juices Show Slow Unit Growth
Table 4-5 Total Private-Label Fruit & Vegetable Juice Retail Sales and Average
Price per Unit, 2005-2009 (in millions $, millions units)
A Plethora of Juice Product Segments
Refrigerated Orange Juice Consumers Shift to Private Label
Private-Label Frozen Orange Juice Decline Slows in Recession
Recessionary Effect on Frozen versus Refrigerated Orange Juice
Other Leading Private Label Juices
Private-Label Tomato/Vegetable Juice Captures Major Share
Table 4-6 Total Private-Label Fruit & Vegetable Juice Retail Sales, 2005-2009 (in
millions $)
Private-Label Fruit & Vegetable Juice Shares by Product Segment
Figure 4-6 Share of Private-Label Fruit & Vegetable Juice Category by Product
Private-Label Bottled Water
Figure 4-7 Private-Label Bottled Water Retail Sales and Share of Total Bottled
Water Retail Sales, 2005-2009 (in millions $)
Private-Label Bottled Water Growth Slows in Recession
Table 4-7 Total Private-Label Bottled Water Retail Sales and Average Price per
Private-Label Convenience/Pet Still Water Growth Accelerates
Table 4-8 Total Private-Label Bottled Water Retail Sales, 2005-2009 (in millions
$)
Private-Label Bottled Water Shares by Product Segment
Figure 4-8 Share of Private-Label Bottled Water Category by Product Segment
Private-Label Carbonated Beverages
Soft Drinks Get a Breather
Figure 4-9 Private-Label Carbonated Beverage Retail Sales and Share of Total
Carbonated Beverage Retail Sales, 2005-2009 (in millions $)

Table 4-9 Total Private-Label Carbonated Beverage Retail Sales and Average
Regular Soft Drinks See Growth from Private Label
Table 4-10 Total Private-Label Carbonated Beverage Retail Sales, 2005-2009 (in
millions $)
Private-Label Carbonated Beverage Shares by Product Segment
Figure 4-10 Share of Private-Label Carbonated Beverage Category by Product
Private-Label Coffee & Tea
Figure 4-11 Private-Label Coffee & Tea Retail Sales and Share of Total Coffee &
Tea Retail Sales, 2005-2009 (in millions $)
Private-Label Coffee & Tea Shows Slow Growth Before Recession
Recession Provides a Rebound
Table 4-11 Total Private-Label Coffee & Tea Retail Sales and Average Price per
Coffee versus Tea
Private-Label Ground Coffees
Private-Label Whole Coffee Beans
Private-Label Refrigerated, Canned and Bottled Teas
Other Private-Label Coffee and Tea Products
Table 4-12 Total Private-Label Coffee & Tea Retail Sales, 2005-2009 (in millions
$)
Private-Label Coffee & Tea Shares by Product Segment
Figure 4-12 Share of Private-Label Coffee & Tea Category by Product Segment
Private-Label Drink Mixes
Figure 4-13 Private-Label Drink Mix Retail Sales and Share of Total Drink Mix
Retail Sales, 2005-2009 (in millions $)
Private-Label Drink Mixes Rise on Price Increases, Unit Sales Decline in 2009
Table 4-13 Total Private-Label Drink Mix Retail Sales and Average Price per
Private-Label Fruit Drinks Set the Pace
Private-Label Hot Cocoa Growth Modest
Table 4-14 Total Private-Label Drink Mix Retail Sales, 2005-2009 (in millions $)
Private-Label Drink Mix Shares by Product Segment
Figure 4-14 Share of Private-Label Drink Mix Category by Product Segment
Private-Label Sports & Energy Drinks
Figure 4-15 Private-Label Sports & Energy Drink Retail Sales and Share of Total
Sports & Energy Drinks Retail Sales, 2005-2009 (in millions $)
Sports & Energy Drinks Sport Lowest Private-Label Penetration
Non-Typical Private Label Behavior
Private Label Growth Amplified versus National Brands
Table 4-15 Total Private-Label Sports & Energy Drink Retail Sales and Average
Private-Label Sports Drinks Show Modest Dollar Growth, Unit Sales Declines

Private-Label Energy Drinks All Fueled Up
Table 4-16 Total Private-Label Sports & Energy Drink Retail Sales, 2005-2009 (in
millions $)
Private-Label Sports & Energy Drink Shares by Product Segment
Figure 4-16 Share of Private-Label Sports & Energy Drink Category by Product

Chapter 5: Competitive Retail Landscape
A History of Upgrading
Alternative Store Formats Drove Private-Label Adoption
Store Format Variety and Channel Crossover Increased
An Extensive Competitive Landscape
Table 5-1 Duane Reade New Product Introductions, Past Six Months, July 2010
Recession Hits Again, But Private Label Prepared
Retail Environment Still Fragmented But Less So
Retailer Consolidation and New Store Development Wanes
Drugstores & Convenience Stores Stepping in for Mom and Pop
Opportunity to Dominant Leaderless Categories
Drugstores Fight Back as Retail Lines Blur
Costco Private-label Penetration Highest of Club Stores
Point and Click Grocery List
FreshDirect an Interesting Model
Selling Outside of Retail Establishment
Differentiation a Major Priority in the Retail Clutter
Top Food & Beverage Market Competitors¡¦
Table 5-2 Top 20 Food & Beverage Retailers by Food & Beverage Dollar Sales,
Figure 5-1 Top 10 Food & Beverage Retailer Shares by Food & Beverage Dollar
Sales, 2005-2009 (%)
Figure 5-2 Food & Beverage Channel Shares by Food & Beverage Dollar Sales,
2005-2009 (%)
Alternative Formats Gaining Share
Table 5-3 Retail Store Type Food & Beverage Dollar Sales Among Top 20 Food
& Beverage Retailers, 2005-2009 (in millions $)
National Chains Capture Share at Expense of Smaller Retailers
Figure 5-3 Retail Channel Type Market Shares Among Top 20 Food & Beverage
Retailers by Food & Beverage Dollar Sales, 2005-2009 (%)
Figure 5-4 Retail Channel Type Market Shares by Food & Beverage Dollar
Sales: Top 20 Food & Beverage Retailers versus All Other Food & beverage
Retailers, 2005-2009 (%)

Competitor Profiles
Aldi, Inc.
Overview
Food & Beverage Sales
New Product Introductions

Costco Wholesale Corporation
Overview
Delhaize America LLC
Overview
The Kroger Co
Overview
Safeway, Inc
Overview
Supervalu Inc.
Overview
Table 5-4 Supervalu New Product Introductions, Past Six Months, July 2010
Target Corporation
Overview
Table 5-5 Target New Product Introductions, Past Six Months, July 2010
Trader Joe¡¯s Co Inc
Overview
Table 5-6 Traders Joe¡¯s New Product Introductions, Past Six Months, July 2010
Wal-Mart Stores, Inc.
Overview
Table 5-7 Walmart New Product Introductions, Past Six Months, July 2010
Whole Foods Market, Inc
Overview

Chapter 6: Private Label Food and Beverage Trends
Consumers ¢¾ Private Label
Challenging Time For National Brands
Economic Bane is Private Label Boom
Figure 6-1 Disposable Personal Income and Total Employment versus Private-
Label Food and Beverage Sales and Total Food and Beverage Sales, 2005-2009
Recession a Major Driver for Private Label Adoption
Average Cart Costs Fluctuate By City, But Savings Clear
Table 6-1 Grocery Cart Averages by Category and Major City, 2009

Table 6-2 Average Price per Unit for Food & Beverage: National Brand versus
Private Label, 2008-2009 ($)
Consumer Value Shift
Young Interested in Private Label
Cooking in More, Dining Out Less
Consumer Not Expected to Fully Return to Brands Post-Recession
Retailer Power Gives a Boost
Center Store Innovations and Offerings a Greater Driver
Table 6-3 Top Private Label Dry Goods Percentage Gainers with $100 Million or
More in 2009 Dollar Sales, 2008-2009 (in millions $)
Better Positioned for Future Growth
Quality Quotient
Consumer Report Study Highlights Quality
Quality Important to Consumers
Table 6-4 Demographic Characteristics of Consumers who Agree with the
Statement: I Won¡¯t Buy Private Label Food And Beverage Products Unless
They Are Of Comparable Quality To National Brands, 2010 (index)
Statement: When I Buy Private Label Food And Beverage Products, Price
Savings Are More Important To Me Than Product Quality, 2010 (index)
Retailers Move Away from Also-Ran Strategy
Retailer Blitzkrieg: Declutter and Takeover Shelves
Private-Label Differentiation Through Segmentation
Focus Away from Premium to Value
Tiers Meaningless and/or Confusing to Consumer
Pricing May Be Next Tactical Decision
Pricing Conundrum
Navigating Complex and Strained Relationships

Chapter 7: Marketing and New Product Activity
The Evolution of Private-Label Marketing
Recession Saw Renewed Focus on Pricing Strategies and Tactics
Emerging from Price Wars
Uber-Retail Brand Strategy Key to Private-Label Brand Building
The Biggest Media Spender is¡¦Walmart
Table 7-1 Advertising Spend for Selected Top Food and Beverage Retailers,
Drop in Aggressive National Brand Marketing
Nationals Showing Some Signs of Bouncing Back
Majors Promise Greater Spend
All Grocery Retailers Benefit from Drop in Ad Costs
Shift to a More European Approach?
Supermarketers Threatened by Walmart and Alternative Retail
Battle Back with Price, Private Label & Relationship Building Programs
Private Label Only One Part of Improving Total Retail Brand Experience
Seasonal, Cross-Promotional Initiatives
Bundling and Recipes

Alternative Media Strategies Emerging
Social Networks
Figure 7-1 Selected Retailers Facebook Fanbase, April 2010 (in actual count)
Word of Mouth
Technology Enhancing Old School Programs
The Modern Age of Coupons
In-Store Messaging Evolves with Technology
Tracking Loyalty
Consumer Research
Product Placement Opportunities Abound
Opportunities in Licensing
Table 7-2 Number of Double Trademark, Cobranded, or Licensed Private-Label
Introductions, 2005-2009
Cause Marketing Good Fit for Food and Beverage Retail and Private-Label
Innovate to Keep Top of Mind
Sophisticated Packaging Now the Norm
Private-Label Introductions Continue to Grow
and Beverage Introductions, 2005-2009
and Beverage Introductions, by Shelf Stable, Refrigerated, Frozen and
Beverage, 2005-2009
Private-Label Categories Move From Snack Time to Meal Time
Table 7-5 Top 10 Private Label Categories by Number in Introductions, 2005 vs.
2009
Private Label is So Chill
Other Emerging Categories Show Sophistication
Table 7-6 Emerging 2009 Private Label Product Categories
A Trinity: Convenience, Health, and Premium
Table 7-7 Top 20 Private Label Product Tags by Number in Introductions, 2005
vs. 2009
Cutting the Sweet Now, Next Up Salt
Rising Mainstream Interest in Ethnic Foods
Table 7-8 Emerging 2009 Private Label Product Tags/Benefits
DHA¡¯s by Any Other Name

Chapter 8: The Consumer
Note on Simmons Market Research Bureau Consumer Data
Note on Packaged Facts Study
Values of the Private-Label User Sees Slight Shifts
Interest in Quality Holds Steady
Less Likely to Prefer Specialty Stores
Slightly Less Image Conscious
Private-Label Usage Preference Rates by 2009 Top 20 Categories
Figure 8-1 Percentage of U.S. Adults Who Most Often Use Private Label: Top 20
Food and Beverage Categories, 2009

Table 8-1 Percentage of U.S. Adults Who Most Often Use Private Label: Top 20
Food and Beverage Categories, 2005-2009
Strongest and Weakest Private Label Categories by 5-Year Point Change
Table 8-2 Year over Year Penetration of Selected Private Label Product
Categories, by Strongest and Weakest Percentage Point Change, 2005-2009
Dairy Case: Strong Private Label Driver
Table 8-3 Percentage Who Most Often Use Private Label: Dairy Case Products,
2009 (U.S. adults)
Dairy Demographic Focus: Butter
Table 8-4 Private-Label User Demographics Focus: Butter, 2009 (U.S. adults
indices)
Condiments: Processed Products less Penetration
Table 8-5 Percentage Who Most Often Use Private Label: Condiments, 2009
(U.S. adults)
Demographic Focus: Ketchup
Table 8-6 Private-Label User Demographics Focus: Ketchup, 2009 (U.S. adults
indices)
Baking Products: Strong Penetration among Total Users
Table 8-7 Percentage Who Most Often Use Private Label: Baking Products, 2009
(U.S. adults)
Demographic Focus: Packaged Pie Crusts
Table 8-8 Private-Label User Demographics Focus: Packaged Pie Crust, 2009
(U.S. adults indices)
Meal Products: Vegetables Are Private-Label Stronghold
Table 8-9 Percentage Who Most Often Use Private Label: Meal Products, 2009
(U.S. adults)
Demographic Focus: Cold Cuts
Table 8-10 Private-Label User Demographics Focus: Cold Cuts, 2009 (U.S.
adults indices)
Breakfast and Bakery Products: Opportunity for Growth
Table 8-11 Percentage Who Most Often Use Private Label: Breakfast and Bakery
Products, 2009 (U.S. adults)
Demographic Focus: English Muffins
Table 8-12 Private-Label User Demographics Focus: English Muffins, 2009 (U.S.
adults indices)
Snacks: Uniform Range for Purchasing Rates
Table 8-13 Percentage Who Most Often Use Private Label: Snacks, 2009 (U.S.
adults)
Demographic Focus: Popcorn
Table 8-14 Private-Label User Demographics Focus: Popcorn, 2009 (U.S. adults
indices)
Beverage Products: Preference Rate Tiers for Juices, Coffee/Tea, and Colas
Table 8-15 Percentage Who Most Often Use Private Label: Beverage Products,
2009 (U.S. adults)
Demographic Focus: Non-Carbonated Bottled Spring Water

Table 8-16 Private-Label User Demographics Focus: Non-Carbonated Bottled
Spring Water, 2009 (U.S. adults indices)
Private Label Retail Consumer Overview
Walmart and Supermarkets Preferred Most Overall
Figure 8-2 Consumer Response to the Question, ¡°Have You Bought Private
Label Food or Beverage Products from Any of the Following Retailers in the Last
3 Months?¡±, 2010 (%)
Supermarkets Think about Courting Younger Consumers, C-Stores Suburban
Families
Table 8-17 Private Label Supermarket and Convenience Store: Top User
Demographics, 2010 (index)
Walmart and Target Share Young Shoppers, but not Income, Region,
Employment
Table 8-18 Private Label Walmart and Target: Top User Demographics, 2010
(index)
A Word on Hispanic Shopper Opportunity
Big Box Store Consumer More Likely to be Married with Children
Table 8-19 Private Label Sam¡¯s, Costco and BJ¡¯s: Top User Demographics,
2010 (index)
Whole Foods and Trader Joe¡¯s A Safety Zone for Urban Working Males
Table 8-20 Private Label Whole Foods and Trader Joe¡¯s: Top User
Demographics, 2010 (index)
A Closer Look at Whole Foods and Trader Joe¡¯s
Statement: Whole Foods Private Label Food and Beverage Are Premium Quality
2010 (index)
Statement: Trader Joe¡¯s Private Label Food and Beverage Are Premium
Quality 2010 (index)

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Private Label Food and Beverages in the U.S.

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