Private labels soaring while economy tanks
December 24, 2008
Private label product sales are increasing past those of name-brand counterparts due to the poor economy and will continue to do so in the next year, according to industry experts. In terms of dollar sales, U.S. private label product sales have increased 10% this year, compared to less than 3.5% growth for name-brand products, according to Nielsen. Tougher negotiations are expected in the current commodity and economic climate. According to analysts, the U.S. recession is expected to put more pressure on big-name food manufacturers to keep retail prices low so as to not lose consumers, especially since corn and crude oil prices have plunged since the summer.