Are you Doing Enough to Promote Private Label?
By RDBA Executive Director, Annette Maggi, MS, RDN, LD, FAND
July 31 looms as a date that could have dramatic impact on the budgets of the millions of Americans currently unemployed. If Congress and the White House decide note to extend the $600 a week federal unemployment subsidy, consumers will have less money to spend, including on groceries. This could make owned brand products even more attractive than they have been during the pandemic thus far.
Both Daymon and Nielsen show significant jumps in private label sales since the pandemic hit. Daymon data shows a 34% increase, higher than for national brands, and Nielsen shows a 23% increase for owned brands for the 14 weeks ending June 6, 2020. IRI estimates that in large format stores, private label food and beverages will increase between $10-12 billion this year, compared to $2.5 billion in the prior year.
Shoppers’ commitment to owned brands is likely to continue, according to a consumer survey by Magid, which found that 68% say they will continue to purchase private label after the pandemic has subsided.
Given the upside of owned brands on margins and profits for retailers, the question retail RDs need to ask themselves is whether they are doing enough to promote these products and brands. Some promotional ideas include:
- Ensure private label products are included in shelf edge attribute programs and e-commerce claims communication.
- Post information on retailer website on how various owned brand products tie into healthy eating plans such as Whole 30, Keto, heart healthy and diabetes friendly plans.
- Partner with category management to create endcaps and in-store displays of healthier owned brand products.
- Build meals and develop recipes that are budget-friendly and include private label products.
- Run social media contests specifically focused on owned brands.
With a significant financial shift potentially occurring at month’s end for millions of consumers, retail dietitians who promote owned brands and budget friendly meals and snacks can significantly impact shopper loyalty and profit.