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EXECUTIVE SUMMARY
Store brands gains widen vs national brands.
Sales hit new highs in all outlets.
Store brands sales in all major retail channels continue their upwards trend, setting new records across
the board for annual revenue. When 2014 came to a close, store brands had accounted for nearly three
billion dollars in incremental sales overall, an increase of +2.5% over the previous year and more than
twice the gain recorded by national brands.
Total sales of private label were $115.3
Annual Percent Rate Sales Growth
billion according to the latest industry
data from Nielsen. As a result, store
brand dollar share moved up across all
outlets combined – consisting of
Store Brands
All Outlets Combined
+2.9%
+2.2%
+2.2%
+1.2%
supermarkets, drug chains, mass
merchandisers, and the club and dollar
National Brands
2012
2013
+2.5%
+1.1%
2014
store channels.
Source: Nielsen/PLMA
© Copyright 2015 PLMA
Over a three-year period, store
Dollar Volume in Billions
brands sales across the combined
retail outlets have increased by $5.5
billion, moving store brand dollar
Total Store Brands: All Channels Combined
$109.8
$112.4
$62.1
$61.0
$59.6
market share from 17.3% to 17.7%.
$47.7
$44.8
$42.1
The run-ups are much the same in the
$115.3
individual channels. Over that
period, the annual sales volumes for
$8.1
$8.3
$8.3
2012
2013
2014
store brands have risen by $2.5 billion
in supermarkets and risen by $200
million in drug chains.
Supermarkets
Drug Chains
Mass, Club & Dollar
When it came to units, store brands and national brands alike saw total unit volumes decline across all
channels for 2014 and store brands unit share was slightly lower at year’s end.
Data for PLMA’s 2015 Private Label Yearbook were compiled by Nielsen for the 52 weeks ending December 27, 2014. Numbers and percentages
have been rounded by Nielsen where necessary and totals may exceed 100% in some instances.
Source: Nielsen/PLMA
© Copyright 2015 PLMA
The contrast between dollars and units was particularly pronounced in the supermarket channel,
where annual store brand sales rose +1.8% – for an increase of $1.1 billion – while volume in terms
of units tapered by -2.1%.
Store Brands Market Share
Dollar Share
23.1%
Measured across all brands and
outlets reported by Nielsen, unit
19.5%
volume fell off as national brands
Unit Share
16.5% 17.3%
21%
17.7%
units dropped 550 million and store
brands lost 530 million units, for a
total loss of nearly 1.1 billion units.
The disparity between revenues
increasing while overall unit volume
remains flat or declines may be
reflective of several factors, especially
in a year when price inflation did not
Source: Nielsen/PLMA
Supermarkets
Drug Chains
All Outlets
Unit market share for store brands was 23.1% in U.S. supermarkets,
while dollar share increased to 19.5%. In drug chains unit share was
17.3% and dollar share increased to 16.5%. Unit share was 21% for all
outlets combined as dollar share grew to 17.7%.
Source: PLMA/Nielsen
© Copyright 2015 PLMA
have a particularly negative impact on
Savings for Consumers
consumers. These factors could range
Last year, shoppers who reached for the store brand version
from trading up to specialty and
of their favorite food and non-food grocery products rather
premium priced items at the high end
– whether organic, sustainable,
gourmet, better-for-you, or simply
“new” and innovative products – to
shoppers across the economic
spectrum pursuing savings by
purchasing larger sizes and club
packs, or by migrating their regular
shopping to patronize limited
assortment stores and discount
than the national brand enjoyed an estimated $27 billion in
savings. Ongoing research by PLMA consistently reveals
that on a trip to a typical supermarket, shoppers save about
one-third on basic grocery and household items by
choosing store brands over national brands.
The difference is marketing costs incurred by national
brand makers that are passed on to consumers. Big CPG
companies spend about 25 cents of every dollar to build
brand equity. They do this to satisfy shareholders and Wall
Street analysts who place a premium on the perceived
value of their brands.
channels not counted by Nielsen.
Source: Nielsen/PLMA
© Copyright 2015 PLMA
Undoubtedly, it’s a combination of such factors at work to produce the statistical results. But the
clear evidence that consumers overall are buying less in the combined channels is almost certainly
an indication that some of the cautious behaviors that were adopted post-recession by shoppers at
the value end continue, in spite of a general return of optimism with regard to the economy and the
future.
Irrespective of trends affecting unit volumes, however, the fact remains that according to the
benchmarks most closely watched by industry analysts – dollar growth and dollar share – 2014 was
once again a strong year for store brands growth in U.S. grocery retailing.
Supermarkets
Store brands sales gains brought U.S. supermarkets a $1.1 billion dollar increase in annual revenues
in 2014. Private label sales were ahead +1.8%, outpacing the national brands at +1.1%. As a result,
store brand dollar share rose to 19.5%, an all-time high. The gain brought annual sales of store
brands to $62.1 billion, also a record. National brands were up about $2.8 billion. Store brands
accounted for 28% of all new dollars coming into the channel last year.
Source: Nielsen/PLMA
© Copyright 2015 PLMA
Over the past three years, annual store brands sales in supermarkets have increased $2.5 billion
– more than +4% – pushing dollar share from 19.1% to 19.5%. During the same period, annual sales for
national brands gained +2%.
Unit volume in supermarkets in particular, which has declined for a number of years, continued to
trend negative. A loss of nearly 890 million units overall impacted store brands and national brands
alike, which were off 560 million units and 330 million units respectively. Private label unit share came
in at 23.1%; it has remained above 23% for the past three years.
Looking at individual departments across the store, store brand dollar share was ahead or even in
seven of the eleven sectors, led by fresh meat (+3.4 points), packaged meat (+0.6 points), dairy (+0.4
points), and deli (+0.2 points). In terms of units, store brand market share was up or even in nine of the
eleven, led by fresh meat (+7.6 points), deli (+1.2 points), fresh produce (+1.1 points), and general
merchandise (+0.7 points). Dairy, which was down -0.7 points in private label share, accounted for one
third of the total channel decline in unit sales for the year.
The top ten categories for private label dollar volume gains in supermarkets were: fresheners &
Source: Nielsen/PLMA
© Copyright 2015 PLMA
deodorizers; fresh meat; nuts; coffee;
Supermarkets by Region
dairy snacks; spreads & dips; ready-to-
In the nine geographical divisions that Nielsen tracks, store
serve prepared foods; fresh eggs;
brand dollar share in supermarkets grew in six, with the
packaged meat; baby food; and
kitchen gadgets.
best performance in the Middle Atlantic, which was up
+0.5 points. The highest shares per se were in the East
South Central (23%) and Mountain (22.8%) sectors of the
Seven of these ten likewise appeared
U.S.; both were significantly higher than the national
on the top ten list of categories for
average of 19.5% for the channel. One region was even in
gains in private label unit volume – a
dollar share and two of the regions declined.
list that also included motor vehicle
In units, store brand share was up only modestly (+0.1
care & accessories, family planning,
points) in two sections, the West South Central and the
and bottled water.
Middle Atlantic. The highest overall unit market shares
were recorded in the East South Central (26.7%) and
Mountain regions (26%), both ahead of the channel-wide
average of 23.1%. Seven of the regional divisions ceded
unit share.
Source: Nielsen/PLMA
© Copyright 2015 PLMA
Drug Chains
As they have for nearly a decade, store brands continued to be the principal growth engine in the drug
chain channel. Private label dollar volume was up +0.3% compared to a decline of -0.1% for national
brands. Consequently, store brand dollar share rose to 16.5%, a new high. The 2014 performance raised
the annual sales of store brands in the channel to $8.3 billion, another high. Over the past three years,
annual private label sales in the drug channel have increased by some $200 million. Private label has
accounted for 40% of all annual revenue growth in the entire channel during that period.
As in supermarkets, units retreated despite the increase in dollar sales. National brands and private
label fell about the same: national brands were off -1.8% and store brands gave up -2.2%. As a result,
store brand unit share declined slightly from 17.4% to 17.3%, though it remains considerably
improved as compared to 2012, when it was 16.7%.
Looking at the eleven departments in the drug channel, store brands gained in dollar share in six and
declined in five. The largest gains were seen in dairy (+1.8 points), general merchandise (+0.8 points),
non-foods grocery (+0.7 points), deli (+0.5 points) and fresh produce (+0.4 points). However, a drop of
Source: Nielsen/PLMA
© Copyright 2015 PLMA
four tenths of a point in the largest
Drug Chains by Region
single department, health and beauty
Looking at the nine geographical regions tracked by
aids, which accounts for more than
Nielsen, store brand dollar share in drug chains was up in
half of channel sales, weighed heavily
on the overall outcome. As for
departments in store brand unit share,
seven were down and four were up or
even; again, health and beauty aids,
which was off five tenths, depressed
the channel-wide total for private
label.
three divisions: the Middle Atlantic region (+0.4 points),
New England (+0.3 points), and South Atlantic (+0.2
points). The highest dollar shares were in New England
and the West North Central region, both at 17.6% –
considerably higher than the 16.5% national average for
dollar share in the drug channel. Six sections were off in
dollar share.
As for units, three regional divisions were up, led by the
Middle Atlantic, which tacked on +0.4 points. Leading the
In individual product categories, the
regions for overall unit market share was the West North
top ten for store brand dollar volume
Central at 19.2%, as compared to the national average of
growth in the drug channel was a
17.3%. Six of the nine regions saw private label unit share
mixed bag of large and small, familiar
decline.
Source: Nielsen/PLMA
© Copyright 2015 PLMA
and unfamiliar, food and non-food sectors: watches & timepieces; milk; ice; ready-to-serve-prepared
foods; dairy snacks; spreads & dips; cereal; light bulbs & telephone accessories; shortenings & oil; table
syrups & molasses; and frozen vegetables.
Looking at the leading unit volume gainers, five of these were also on the top ten list, and were joined
by coffee; pasta; prepared foods (dry mixes); breakfast foods; and cottage cheese, sour cream &
toppings.
PLMA’s 2015 Private Label Yearbook
© Copyright 2015 PLMA
Editor
Executive Summary
Production Director
Research Director
Dane Twining
Joe Azzinaro
Alisa R. Svider
Tom Prendergast
Published by :
Private Label Manufacturers Association
630 Third Avenue, New York, NY 10017
Telephone: (212) 972-3131 Fax: (212) 983-1382
www.plma.com