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Beverage News

Survey reveals consumers see value in private label

58 percent indicate buying private-label beverages

Beverage News
November 17, 2016

With the holidays fast approaching, many consumers will be looking for the best buys at the grocery store. To give grocery retailers and manufacturers direct access to the voice of the consumer, Boston-based Trace One recently conducted a survey to determine what shoppers want from private-label products.

Conducted with 2,000 consumers from eight countries — the United States, Canada, Germany, the United Kingdom, Spain, France, Denmark and Italy — the survey revealed that 77 percent of respondents say private-label brands offer quality for less money.

“Retailers need up-to-date information about consumer needs if they are to respond to changing consumer behavior and thrive amid intense competition,” said Shaun Bossons, chief revenue officer for Trace One, in a statement. “We hope that our survey findings will help retailers and manufacturers adapt their private label strategy to drive both consumer loyalty and trust.”

The report reveals consumers’ opinions on the strengths and weaknesses of private label products. The following are key findings from the survey:

  • Private label offers a key differentiator, thus creating loyalty with 72 percent saying they shop at a specific retailer more than once a month because of its private-label products.
  • Eighty-five percent of respondents buy private-label products more than once a month.
  • Product categories in which consumers are most likely to buy private-label products include dairy (59 percent), beverages and paper goods (both 58 percent). Consumers are least likely to buy private-label personal care products (42 percent) and produce (43 percent).
  • Consumers who only buy economy products prefer national brands for beverages (45 percent), and dairy and meat (both 34 percent). Meanwhile, consumers who only buy premium products prefer national brands for beverages (56 percent) and canned/jarred goods (44 percent).

The report also includes examples of how retailers and manufacturers are responding to consumers’ needs, increasing sales and loyalty, and boosting store traffic.

For more information, visit traceone.com.

KEYWORDS: consumer insights premium beverages private label

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