TORONTO — Nearly seven in 10 (68%) shoppers polled in a recent study agree that private labels offer extremely good value; two-thirds say that store brands are just as good as name brands; and only 39% agree that the best new products come from name brands.
“All signs point to increased competition by store brands,” said Robert Levy, president and chief executive officer of BrandSpark International here, which surveyed more than 50,000 respondents.
Despite broader acceptance of private brands, consumers trust national brands more. When asked open-endedly about their most trusted brand, Kraft received the most mentions (11.1%), followed by Campbell's (5.3%) and General Mills (5%). Store brands were only brought up by 1% of respondents.
Still, as their lower price point drives greater penetration, private brands have the potential to improve their position. The vast majority of respondents (93%) said value is either extremely important or very important in motivating new product purchases.
BrandSpark's 2009 Best New Products Awards American Grocery Shopper Study also gauged shoppers' opinions of new products in 23 categories. Winners include Doritos Collisions chips; DiGiorno Ultimate frozen pizza: Edy's Slow Churn vanilla ice cream; Hershey's Bliss chocolate; Progresso Light soup; Kellogg's Special K Cinnamon Pecan; and Prego Heart Smart pasta sauce. Winners earn the right to bear the “2009 Best New Products” seal.