Friday, January 28, 2011

Recessionary dynamics boost private label soft drink sales

This is a rather old article, however, its relevance is high keeping in mind the trend of "private labels" that we have been closely following on over the last few days. While some of the brand owners are almost dismissive of the impact of private labels in emerging retail markets, the trend can not be ignored. The concern that national brands need to have is highlighted by the fact that sales of private label soft drinks are accelerating as consumers go out less and therefore drink more at home, according to a new report.

With less excess cash to spend people are going out to fewer bars and restaurants, where branded drinks dominate the menus. Instead, Canadean said they are drinking at home which means spending more on soft drinks at the supermarket where private label alternatives line the shelves.

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