Report: Private label foods growing in popularity

LAS VEGAS The introduction of high quality, store-brand organic products has changed consumer perceptions of private label grocery brands, according to results of the forthcoming J.D. Power and Associates Private Label Industry Report. In particular, consumer attitudes about many store brands have shifted -- rather than being considered low-quality with bland packaging, private label brands are being thought of as unique and with having quality commensurate with that of traditional brands.

The report found that while private label pricing is a strong motivator for consumers, the quality and flavor of private label organic products drive the highest levels of positive sentiment. Private label food products from Safeway, Trader Joe’s and Whole Foods garnered particularly high levels of recommendations, compared with other private label brands and are perceived as being particularly healthful and flavorful.

“It’s clear that consumers have begun to discard the idea that private label brands are of lower quality than traditional brands, which provides an opportunity for retailers to differentiate themselves with high quality, reasonably priced store brands,” said Janet Eden-Harris, VP J.D. Power and Associates Web Intelligence Division.