U.S. retailers continue to make progress in offering store brand products with health claims relevant to shoppers looking for healthier food choices. Store brands flexed their marketing muscle in the health claims arena putting impressive growth numbers on the leader board in emerging, albeit smaller, trend areas such as genetically modified organism (GMO) free, gluten free and absence of a specific fat. Store brands now comprise almost 40% of products with preservative claims, one-fourth of organic product sales, and nearly one-fifth of all products with natural and fat claims in food/drug/mass merchandise retailers.
Supermarkets have been quick to launch certified organic products with their own store brands. And in the natural food channel, research from SPINS shows that the natural food consumer will migrate to items that deliver natural product benefits and full flavor under a familiar retail banner.
The success of Topcos Full Circle line encompassing more than 1,000 products in 90 categories, the 300 O Organics products and 200 Eating Right items speak to the potential of retailer brands throughout the store. More categories are soon to follow, based on the recent announcement that Sams Club plans on launching a private label Rue 33 premium French vodka, likely inspired by the success of rival Costcos Kirkland label of vodka, scotch, tequila, wines and beer.
Conversely, store brand development lags with respect to the products with newer claims such as high fructose corn syrup free, with many retailers adopting a wait-and-see attitude to determine if a claim has legs or is merely the latest blip on the consumer trend screen.
Source: The Nielsen Company
