New survey reaffirms what we've been saying about store brands

I wonder what the CEOs of Coca Cola, General Foods, and Proctor & Gamble might have said a generation or so ago if you told them in 2009 that store brands would account for fully one-quarter of all food and beverage purchases by U.S. consumers? No doubt there would be plenty of skepticism, disbelief, even laughter.

But the numbers don’t lie, and the latest data from the market research experts at NPD reveals that an astounding 97 percent of households buy store brands of food on a regular basis. Brand loyalty ain't what it used to be.

It’s not just a passing fancy either. Tough economic times have surely prompted cost-conscious shoppers to stock up on store brands, which sell for 25 percent less, on average, than the big names. However, usage has been growing steadily for more than a decade, according to NPD, even among higher-income shoppers. Indeed, one-third of consumers who bought store brands have household incomes of $70,000 or more.

 

“There is no question that private label foods have become an integral part of American life,” said Harry Balzer, chief industry analyst at NPD and author of Eating Patterns in America. 

Price and value are the chief reasons why consumers purchase private label or store brands, according to an NPD survey of grocery shoppers, but most respondents also feel that the quality of store brands is often equal to, or in some cases better than, name brands.

NPD’s findings are no surprise to us. We’ve been preaching that message for years, based on both our product tests and shopper surveys conducted by Consumer Reports National Research Center.

 

In our just-released Supermarket Ratings report, 66 percent of respondents told us that they’d bought store-brand products in the past month. Overall, 70 percent said they were highly satisfied with the quality of store brands they'd purchased.  Increasingly, stores are putting their own names on prepared meals, cold cuts, baked goods, fancy sauces, and organic goods in addition to the usual canned fruit, frozen veggies, and paper towels. Over the years, Consumer Reports' tests have found many store brands to be at least as good as national brands. So if you haven't tried store brands before, now's as good a time as any. Best of all, most come with a satisfaction guarantee. If you don't like what you buy, bring it back for a refund. 

 

Comments

[John Schultz]

Is the satisfaction guarantee really "best of all"? Does anyone ever use satisfaction guarantees? What level of dissatisfaction legitimizes a complaint, and is it worth my time to hang out at Customer Service for 8 minutes for a $1.50 refund on my Cheezy Poofs?

(I'm an avid buyer of store brands, I just take no comfort in Satisfaction Guarantees.)

[Keith Vincent]

In response to John's comment, we use satisfaction guarantees on a regular basis. Since I have to go to the store and shop the following week anyways, if I'm not happy I just bring the package or product back and get a refund towards my next shopping trip. Why pay for something if you don't like it? You are still out the money if you don't return the product, so by bringing it back and taking the 8 minutes to get the $1.50 back amounts to about $10 an hour for your time. Since you have to be in the building (probably for a lot longer than 8 minutes) grocery shopping, why not extend the visit a little to ensure you only pay for a great product. What legitimizes a complaint? Are you satisfied? That was the guarantee, if you're not, return the product! So, yes, people use the guarantee, and yes it's worth it to get the refund, and the complaint is legitimized by the offer of the guarantee itself.