Store Brands Compete and Thrive in the 21st Century
ConAgra's Acquisition of Ralcorp Proves the Point
CHICAGO, IL -- (Marketwire) -- 11/28/12 -- Store brands, once the
dowdy sisters of national brands, are now the belles of the ball
thanks to evolving internal brand management skills, tighter retail
margins and smart modern packages with arresting graphics, notes
Store Brand Decisions. All are transforming retailers' in-house
brands and fueling a trend driving the food industry's biggest
players to take notice.
ConAgra's $5 billion acquisition of Ralcorp this week confirms this
trend and shows that store brands are both growing in importance and
focusing on out-innovating their national brand competitors. This
trend is covered in-depth in a just-published article from Tetra Pak.
"We expect growth in private label food to continue to outpace growth
in branded food," said ConAgra CEO Gary Rodkin in a statement
reported by U.S. News.
Ralcorp makes store-branded goods for Wal-Mart and Kroger, the two
largest food retailers in the nation, according to Supermarket News.
Other grocery giants pouring resources into house-managed labels
include Safeway, Publix, Whole Foods and Costco. By 2025, market
forecasters say one in every three products bought in the U.S. will
be a retailer-owned brand.
Increasingly, store brands are developing a multi-tiered strategy
targeting different market segments that are looking for lower
prices, high-quality fare and healthful options, notes Food
With a new generation of brand-indifferent consumers roaming the
grocery store, never before has packaging played such an important
role in grabbing shoppers' attention in the aisles.
"Package graphics, in particular, are playing a central role," Food
Processing wrote. "Retailers are turning to graphics to create a
store-wide presence for their private label offerings and also to
convey the quality of new premium and artisanal private label lines."
The functionality of packaging is also key, with Millennial shoppers
turned on by the compactness, utility and sustainabilty of non
traditional packages, cartons being one example, market researchers
say, choosing them over cans or jars all else being equal. And
increasingly, savvy retail brands are turni
ng to Tetra Pak's
innovative Tetra Recart carton, a 21st century alternative that has a
100-percent printable surface. This offers a mini-billboard for
eye-grabbing graphics and the nutritional data and culinary tips
consumers want to see. From artwork to info, Tetra Recart helps
strengthen the connection between shoppers and the products inside.
Read the full story.
Press spacebar to pause and continue. Press esc to stop.