|Title:||United States share of private-label consumer packaged goods sales broken down for dollar and unit sales by retail channel in percentages for 2010 and 2011|
Start of full article - but without data
2011 CPG * Private Label Share by Channel
Private Label Share Point Change vs 2010
Dollar Unit Dollar Unit
Grocery XX.X% XX.X% +X.X X.X
Walmart ** XX.X% XX.X% +X.X +X.X
Supercenter XX.X% XX.X% +X.X +X.X
Club XX.X% XX.X% +X.X +X.X
Dollar XX.X% XX.X% (X.X) (X.X)
Drug XX.X% XX.X% (X.X) (X.X)
Mass Merchandise XX.X% XX.X% +X.X +X.X
Convenience X.X% X.X% +X.X +X.X
All Outlet XX.X% XX.X% +X.X (X.X)
* Across SymphonyIRI InfoScan@ Review Categories ** Walmart, including
Neighborhood Markets Source: SymphonyIRI Consumer Network[TM], XX weeks
ended X/X/2012 and same period prior year
Private label performance is generally positive across most CPG
channels, but overall share of unit slipped, driven by noteworthy
declines in dollar and drug channels.
Note: Table made from bar graph.
Private label accounts for about XX% of unit sales and just under XX% of dollar sales across CPG channels. Detailed in SymphonyIRI's September 2011 edition of Times & Trends, this is an increase versus 2008, but a slight decline versus 2010.
Private label share is growing across a majority of channels. Two exceptions: share is down slightly in the dollar channel and down more sharply in the drug channel.
In the dollar channel, private label unit share declined nearly one point, while dollar share slipped X.X points. But, dollar channel marketers are working hard to bring momentum to their private brand performance.
Family Dollar, for instance, has been focused on increasing penetration of its private label lines during the past year. It is increasing assortment, particularly of private label consumables, and it is increasing marketing and merchandising support of its lines in order to raise awareness and improve the lines' profiles (X).
To be detailed further on the pages that follow, drug channel declines are, at least in part, due to the fact that overall private label share of health and beauty sales, for which the drug channel is a destination location, are on the decline.
Private label growth was strong in the mass merchandise and supercenter channels during 2011. Some of the private label brands within these channels, including those of Target and Walmart, are sizable and are perceived positively by consumers. In Target, for example, private brands represent more than one-third of Target's overall sales and share is climbing (X). And, within these channels, growth of private label lines continues to be a strong focus.
The club channel is also experiencing healthy private label share growth. A strong performer in this channel is Costco's Kirkland Signature brand. Kirkland Signature accounts for about XX% of overall Costco sales, and the retailer is focused on growing the brand's penetration.
At present, Kirkland Signature penetration is higher in food, health and beauty, versus other areas, and this is expected to remain consistent in the future. In keeping with this focus, the retailer has expanded the line into a number of new food categories during the past year, including canned goods, nuts and snacks (X).
On average, private label share of unit sales slipped X.X points, and share of dollar sales increased X.X points during 2011. At the department level, though, private label performance varied rather remarkably.
Private label gains were strongest in the bakery department, where unit sales increased X.X points, and dollar sales were up just under one point. Part of the shift to private label is due to price increases: overall bakery department price per volume increased X% in 2011, while private label bakery price per volume increased just X.X%. This difference is not huge, but it makes an already sizable private label price gap of about XX% even larger at XX%.
Private label also gained share in the deli department. Here again, changing prices and price gaps are at play. In the deli department, even after both national and private label products experienced rather sizable price increase (and private label increases were higher), the average price per volume for private label deli solutions is nearly X% lower versus nationally branded alternatives.
Retailers across CPG channels are focused on growing their private label lines because they offer higher margins versus national brands, as well as a level of differentiation in a highly competitive marketplace.
In the health and beauty care department, private label share of unit sales slid just under one point, while dollar sales slid X.X points.
In this department, private label price gap closed only slightly, and private label still provides a considerable discount versus nationally branded alternatives.
A more probable influencer of private label share declines in this department is the aforementioned strong innovation that is taking place in this arena.
To compete effectively, manufacturers must keep a keen eye on the competitive environment, and continually hone pricing and innovation strategies to mitigate private label gains, and to protect and grow share of their own brands.
Retailers, too, must stay on top of innovation and pricing trends. They must constantly evaluate the feasibility and the cost/return of bringing truly innovative products into their private label line-up, and they must ensure new and existing products alike are priced effectively against national brand competitors and competing private label solutions, as well.
According to SymphonyIRI's MarketPulse survey series, XX% of consumers are buying more private label today than they did before the economic downturn began. In fact, private label has played a major role in helping consumers save money throughout the downturn.
It is important to note, though, that private label growth is not just occurring at the value end of the spectrum. Indeed, many retailers are introducing "specialty" lines that command a higher price point versus national brands, and are aimed at consumers looking for low-cost gourmet solutions.
Illustrated here, private label share is on the rise across a majority of the categories that experienced the highest price increases during the past year. In many of these categories, private label gains outpaced industry and department average by a wide margin.
For instance, private label share of unit and dollar breakfast meat sales climbed X.X and X.X points, respectively. Detailed in the September 2011 edition of Times & Trends, penetration gains have contributed heavily to increased traction in categories where private label share has been historically lower than industry average. In the case of breakfast meats, penetration increased X.X points between 2010 and 2011, respectively.
On the other end of the spectrum is private label mitigation. A long-recognized defense to private label inroads is innovation--and this is what is happening in the milk and coffee categories.
SymphonyIRI's 2011 New Product Pacesetters report revealed that XX% of 2010 beverage launches came from coffee and tea brands, versus a historical average of just X%. Detailed therein, the jump in representation was largely attributable to the birth of single-cup coffee, known broadly as the K-cup, and sizable single-cup new product launches by Newman's Own and Green Mountain. Single-cup coffee innovation is still quite steamy, with sizable new launches from Keurig and Tully's during the past year.
Milk innovation, too, was huge in 2010, with better-for-you variations making a substantial splash in the marketplace. Better-for-you was strong again during 2011, with Silk Pure Coconut and Bolthouse Farms refrigerated kefir milk posting sizable sales in their first year in the marketplace.
(X.) Family Dollar SEC Filings;
(X.) Target SEC Filings;
(X.) Store Brands Decisions, October XX, 2011
2011 CPG * Private Label Share by Channel