Davidson’s Organics, Sparks, Nev., announced it is expanding its private-label beverage program because of popular demand. The program, which offers custom tea bags, bulk teas and iced teas, now will offer wider capabilities through the company’s investment in new machinery as well as its NSF International certification.
During the recession, the countercyclical discount retail channel experienced years of growth, even to the point of becoming one of the fastest-growing retail channels during the time period, according to “Dollar & Variety Stores in the US,” an April 2014 report by IBISWorld.
National brands showing momentum in drug stores; private label standing out in mass/supercenter channel
January 20, 2015
During the recession, private-label products enjoyed increasing popularity as consumers looked for new ways to save on everyday purchases during the economic downturn. In fact, U.S. consumers spent $120 billion on private-label products during the past year, marking a year-over-year increase of 2.1 percent, according to Chicago-based Information Resources Inc. (IRI). However, this growth now seems to be leveling off, and this small uptick was largely driven by price increases, it reports.
When consumers shopped the aisles of different retail channels during the past couple of months as they prepared for the holidays, product assortments and even store environments probably started to seem the same after a while.
Although many private-label brands have moved beyond the “me-too” positioning for which they were once known, the private-label beverage segment still is struggling to keep up with the rest of the beverage market as consumers' needs and wants have evolved.
Lassonde Industries Inc., Rougemont, Quebec, posted sales of $315 million in the third quarter of 2014, marking a 22.3 percent increase compared with the prior-year period. Sales for the third quarter included the Apple & Eve LLC (A&E) portfolio, which was acquired earlier this year. Profit attributable to the company's shareholders for this period totaled $10.6 million, reflecting a decrease of $600,000 from the third quarter of 2013.
For decades, consumers have strived to live by the unofficial rule of drinking eight glasses of water a day. Although this mantra is well-known throughout the United States, many consumers don’t drink as much water as they should. However, that has begun to change in recent months.
Following years of growth, total consumption of private-label products has softened as of late, says Harry Balzer, chief industry analyst for The NPD Group, Port Washington, N.Y.