CHICAGO, IL--(Marketwire - Nov 28, 2012) - 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 Processing Magazine.
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 turning 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.