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October 25, 2007

Retailer brands growing solidly in additional categories

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Retailer brands continue to post solid dollar-volume increases in a number of categories across all distribution channels. The growth is due in part to retailers’ added emphasis on branding, in which packaging is playing a stronger role than ever in differentiating retailers and creating value.

Dollar-volume growth is strongest for private-label products in lawn and garden, noncarbonated soft drinks, pet care, baby needs, and dairy snacks–spreads and dips, according to research from The Nielsen Co. The data was published in the Private Label Manufacturers Association’s 2007 Private Label Yearbook.

In some categories or subcategories where growth is fastest, retailer-brand products are approaching 20% of total category dollar share versus national brands. Dollar share approaches 33% and 48%, respectively, in two other categories.

Lawn and garden products are making the biggest gains. They now hold 18% of the category’s total dollar share. Elsewhere, total category dollar share is 12% in noncarbonated soft drinks, 16% for pet-care products, 10% in baby needs, 17% in dairy snacks–spreads and dips, 22% in deli dressings–salads and prepared foods, 48% in sugar and sugar substitutes, 33% in wrapping materials and bags, 9% in cookware, and 7% in snacks.

Across both distribution channels and product categories, dollar-volume growth exceeds unit growth. That indicates higher prices as retailer brands project greater value.






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