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.
According to MarketAdvantage data from Information Resources Inc. (IRI), dollar sales for private-label beverages increased only 0.2 percent in the 52 weeks ending Aug. 10 in multi-outlet and convenience store retailers, compared with the prior-year period, notes Susan Viamari, editor of Thought Leadership for the Chicago-based market research firm. This growth was largely driven by price increases, as unit sales declined 1.4 percent, she says. By comparison, the overall beverage market grew 1.6 percent, with unit sales up 2.1 percent, compared with the prior-year period, she adds.