Kendra Jeske joined the ranks of consumers buying store brands recently when she bypassed the Ragu pasta sauce for the Safe way Select brand.
“I’m looking at prices now,” the 28-year-old personal banker said.
Private-label products may be one of the few beneficiaries of the economic downturn. Store- branded products are an $83 billion-a-year business, accounting for one of every five sales in grocery stores, drug chains and mass merchandisers, according to the Private Label Manufacturers Association.
The price differences may be only a few pennies but can add up to significant savings.
“It’s no secret private-label sales have gone up for everyone,” said David Livingston, supermarket analyst for Wisconsin-based DJL Research. “It’s just a result of consumers trading down in this economy.”
In fact, more than 40 percent of shoppers said they bought the least-expensive brand whether it was brand-name or not in the fourth quarter of 2008, compared with 33 percent a year earlier, according to a national survey by Decision Analyst, a Dallas-based research and consulting firm.
“Typically, it’s an identical product, and it makes sense that when consumers need to be a little more frugal that they would go with the private label,” Livingston said.
Among private-label products that have soared in popularity in national stores across Colorado are King Soopers’ more than 10 private-label brands; Whole Foods’ “365 Everyday Value” brand, among others; and Safe way’s 13 in-house brands, including O Organics.
“People don’t have to sacrifice great quality to live in today’s economy,” said Dana Page, Exclusive Brands manager for Whole Foods.
For Adrian Gaitan, both cost and quality rule. He stocked up Thursday with boxes of O Organic pasta at Safeway.
“The first thing I look at is the price and the nutritional value,” Gaitan said.
Consumers are shopping the Wednesday and Sunday grocery ads more and more, Safeway spokeswoman Kris Staaf said.
“Everyone is looking for extra value,” she said.
The run on store brands began in September, said Frank Romero, director of grocery for King Soopers.
“A lot of people will be pleasantly surprised by the quality,” Romero said. “They may never go back.”
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
