Sales of private label brands have exploded in the past half-decade as consumers have done the best they can to get through the economic recession. According to market researcher Packaged Facts, store brands accounted for almost one-third of new food and beverage items introduced in the United States in 2011.
While monetary savings are usually the primary impetus for choosing private label products over national brands, purchasers have discovered that there is little tangible difference between the two categories of products in taste, use, or quality of ingredients. The lack of differentiation and the clear cost advantage of private brands are imposing fundamental changes on the retail industry today, affecting pricing, advertising, merchandising, and product selection.
