It was another record breaking year for the Private Label Manufacturers Association (PLMA) show. 2014 was the largest in the association’s 34 year history; over 4,250 visitors and 1,335 exhibitors.
The global presence of private brands was very much in evidence at this show. The Idea Supermarket® showcased products across North America, Europe, Asia and Latin America.
Private label brand growth continues to outpace national brands. According to The Nielsen Company, private label unit share in supermarkets has reached 23.4% and dollar share is now at 19.4%. Total store brand sales reached $112 billion last year.
Although this show is largely about retail products, there has been a growing representation of companies who package foodservice products and work with chefs and restaurant brands interested in building a retail presence.
Private Label Market Dynamics:
- Successful companies in the private label business are moving from a quick follower strategy to a greater focus on innovation
- Understanding shopper needs is at the core for successful brands
- New product focus is evolving to greater specialization to capture niche markets
Eating Well – Protein Packed and Fibered Up
Healthfulness was on trend with some of the most popular ingredients in demand by consumers today. Protein power added with hip new ingredients receive more attention than traditional protein packed foods. The inclusion of beans and other legumes is adding the one-two punch of healthfulness with fiber and protein.
Chia seeds are the trendiest of ingredients incorporated in everything from muffins to smoothies. Ancient grains and ingredients that increase fiber were seen in many everyday staples like soups and pancake mixes. Quinoa has achieved mainstream status. Even though there are many people who cannot pronounce it; it is in demand.
Gluten Free
Gluten free offerings were seen across every conceivable category. There is no greater testament to the popularity of gluten free as a mainstream preference than to see products sporting gluten free claims in almost every aisle of a show dedicated to private label.
Flair, Style and Originality
In a keynote presentation by Martha Stewart, she talked about the importance of flair, style and originality in successful brands. Private brand products and packaging seen in the Idea Supermarket were clear evidence of this, and looked more high-end food boutique than supermarket. Rather than undifferentiated pantry staples, these products featured fresh contemporary design, authentic ethnic cues and photography that looked delicious and irresistible.
Barely There Packaging
Minimal packaging was featured for foodservice products in particular. Packaging featured just enough to maintain product integrity and make storage hassle free and nothing more. Second life products from recycled materials are also winning a larger audience.
From Value Add to Value Capture
Recently the conversation has been about adding relevant consumer value rather than manufacturing driven value that may build revenue or margins but does not connect with the customer. Yet the latest conversation is about innovative ways to capture value and build sales by redefining target markets and go to market strategies.
Celebrity Chef Brands
Celebrity chefs known for championing causes that are important to consumers are finding an audience among consumers. Chef Jamie Oliver is featured on a line of prepared foods in Canada. According the a new study by the Culinary Visions® Panel chefs using their celebrity status to do good can also have a significant impact when they support causes. 53% of consumers surveyed said they follow local chefs/restaurateurs that do good for the community.
Taste Talk Tweet
Tweeters commented on packaged spice blends for roasting vegetables, water flavor enhancers in new, smaller package sizes as small as lip balm, nutritionally balanced and better-for-you frozen kids’ meals, and how store brands are beginning to capitalize on opportunities in the fresh perimeter of the store. Others noticed the Keurig brewing cups in new flavors like root beer float, chicken noodle soup, and instant rice side dish, as well as a spreadable yogurt marketed as a topping for waffles, pancakes and bagels.
If you want to follow our observations in real time go to https://twitter.com/OlsonComm. The next conference we will cover is the Winter Fancy Food Show, January 11-13, 2015.
Implications for Food Marketers
- Brand Blueprinting. Brands built on needs and wants are driving successful private brands.
- Consumer Connection. Brands that create a personal connection with consumers are making questions about lowest price less relevant.
- The Brand Buzz. Although social media is always in the conversation, leading voice industry believe that buzz starts on television because of its reach and credibility with consumers.
- Brand Architecture. With the proliferation of brands within brands, attention to brand architecture is vital to assuring that brands remain relevant, fresh and unique to consumers.