Sunday, April 17, 2011

The Latest on Private Label: There’s Good News & Bad News

Here is an insightful post from DigitalCPG.

It seems we report on private label’s increased market share almost every other week. But today is not entirely dreary for national CPG brands – we’ve got both good and bad news.

First, the bad news: “The global market share of private label food products is expected to double, from its current 25% to 50%, by 2025,” according to a new report from the Food and Agri Research division of Rabobank, an international financial services provider.

But the good news: “The report, however, also concludes that top or “A” brands are expected to retain their market shares. It’s the smaller, often local, “B” brands that will face mounting downward pressure on volumes, as retailers stop carrying them in favor of using their shelf space for their own private label brands.”

So even though the innovative and scrappy local brands are getting knocked off, national brands finally get a break.

Read more here.

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