According to a new survey from Canadean
Custom Solutions, 81% of UK adults are happy to buy private label grocery brands
with many believing they are produced in the same factory as branded goods and
it is only the packaging that is different. .
Approximately three in ten people (30%) say that at least half of the items they buy are store own brands. Biscuits (53%) is the product people are most likely to buy private label.
Canadean said that the recent years’ growth of private label brands should not only be tied to a downturn in consumers’ financial wellbeing. In reality, decades of investment in product portfolios and category management by retailers, combined with continually growing scepticism towards the food industry in general, means that the majority of consumers are unable to differentiate between branded and non-branded food and drinks.
The survey found that 55% of UK adults believe that the quality of private label food and drinks is just as good as branded alternatives. More worrying for branded manufacturers is that 46% of respondents believed that branded and non-branded food and drink is produced in the same factory and it is only the packaging that is different. Furthermore, 64% believe that any extra costs associated with branded food are down to advertising costs and non quality indicators. The results show that if branded manufacturers are to differentiate from private label alternatives, more needs to be done to leverage traits such as quality, authenticity and brand heritage.
Michael Hughes, Research Manager at Canadean Custom Solutions, said: “The figures show that continued growth of private label is not just a knee-jerk reaction by consumers to a recessionary environment, but the result of decades of investment in product portfolios by retailers. This has also been helped by an increasing level of scepticism towards the food and drink industry as a whole, with consumers ultimately believing branded and non-branded groceries are the same, with only different packaging and advertising resulting in different retail prices”.
Approximately three in ten people (30%) say that at least half of the items they buy are store own brands. Biscuits (53%) is the product people are most likely to buy private label.
Canadean said that the recent years’ growth of private label brands should not only be tied to a downturn in consumers’ financial wellbeing. In reality, decades of investment in product portfolios and category management by retailers, combined with continually growing scepticism towards the food industry in general, means that the majority of consumers are unable to differentiate between branded and non-branded food and drinks.
The survey found that 55% of UK adults believe that the quality of private label food and drinks is just as good as branded alternatives. More worrying for branded manufacturers is that 46% of respondents believed that branded and non-branded food and drink is produced in the same factory and it is only the packaging that is different. Furthermore, 64% believe that any extra costs associated with branded food are down to advertising costs and non quality indicators. The results show that if branded manufacturers are to differentiate from private label alternatives, more needs to be done to leverage traits such as quality, authenticity and brand heritage.
Michael Hughes, Research Manager at Canadean Custom Solutions, said: “The figures show that continued growth of private label is not just a knee-jerk reaction by consumers to a recessionary environment, but the result of decades of investment in product portfolios by retailers. This has also been helped by an increasing level of scepticism towards the food and drink industry as a whole, with consumers ultimately believing branded and non-branded groceries are the same, with only different packaging and advertising resulting in different retail prices”.
NamNews - Friday 7th February 2014
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