Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!

Not So Private Anymore

August 1, 2005

Not So Private Anymore
Sarah Theodore  
Editor
Private label products are growing at a rate of 18 percent in the U.S. beverage industry, according to an extensive Citigroup Smith Barney private label report. In fact, store brands have been on the receiving end of a lot of positive press lately, including a write-up in Consumer Reports, the bible of the savvy shopper. All of that is good news for the companies producing store brand products, but a troubling trend for those on the branded side of the business.
One of the main reasons consumers are embracing private label products is that they perceive them as being of comparable quality to branded products. According to ACNielsen, more than two-thirds of North American consumers consider private label products to be good alternatives to branded products.
The company took a look at attitudes toward store brands in several regions of the world, including Europe, North America, the Pacific, Latin America and Asia. One of the most interesting findings was that private label products were far more popular in developed markets, than developing countries. Beliefs such as “I don’t think private label brands are suitable for products where quality really matters,” and “They’re really meant for people who are on tight budgets and can’t afford the best brands,” were most common in developing countries. In fact, North America and Europe were least likely to report those feelings.
Maybe it’s time to take another look at this category and find out what’s really driving it. The perception has been that store brands are most popular for consumers who can’t afford more expensive products, or that private label becomes appealing when consumer confidence is down — essentially, that consumers want branded products but can’t afford them. But ACNielsen’s findings show that private label is more popular in the most affluent parts of the world, and the strongest correlation to private label sales is how well developed the retail landscape is in a given market. Perhaps the trust consumers have in retailers is just as significant as their trust in brands. It’s also possible that the “badge appeal” on which branded products so often rely carries only limited weight.
The good news for branded products in the United States is that even with 18 percent growth, most beverages have been sheltered from private label. Store brands have an average of 21 percent market share throughout the beverage industry, but milk, frozen juice and bottled water feel the pinch the most. Products such as soft drinks, beer, refrigerated and shelf-stable juices, isotonics and wine fall well below the average.
How can you keep it that way? Innovation, say the experts. “Those who innovate gain share,” states Citigroup in its report. If private label is encroaching on the trust territory of branded products, it still can’t approach the innovation. I can only imagine how frustrating it is for branded product companies to invest their money, sweat and tears into a product only to have it copied as a less expensive store brand, but newer and better is what consumers expect from their favorite brands, and that’s what brands do best. BI
Sneak Peek
SEPTEMBER
Cover Story —  Beer Wholesaler of the Year, Origlio Beverages
Category Focus —  Dairy drinks
Packaging —  Coding equipment
Beverage R&D — Color technology
OCTOBER
Special Report —  The future of distribution
Category Focus —  Private label
Marketing —  Gender-specific branding
Beverage R&D — Organic ingredients
 

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Sting Energy

PepsiCo, Sting Energy unveil global partnership with Formula 1

PepsiCo + poppi

PepsiCo completes acquisition of poppi

people drinking Wynk

Mindful drinking prompts growth for THC beverages

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • tom ft

    Not-so-secret fleet operations

    See More
  • Beverage News

    So Good So You sends care packages to front lines

    See More
  • So Good So You Wellness Shots - Sleep and Beauty

    So Good So You Probiotic Shots

    See More

Related Products

See More Products
  • GlobalData_Consumer.jpg

    Where Next for Bottled Water? Exploring consumer trends and innovation opportunities in bottled water

  • GlobalData_Consumer.jpg

    United States of America Beer & Cider Market Insights 2020

See More Products

Related Directories

  • Beverage Intelligence Group

    Beverage Intelligence Group is a full-service, private label beverage development and commercialization company. We’re dedicated to reinventing and elevating private label beverages. We’re your complete private label partner. From concept to launch and beyond, we manage every step to bring your product vision to life.
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing