PLMA reports jump in 2010 private-label sales
NEW YORK — Private-label sales across all three major retail channels reached new heights in 2010, according to the Private Label Manufacturers Association.
According to PLMA’s 2011 Private Label Yearbook, which tracks private-label sales and market share trends based on Nielsen Co. data for the year ended Dec. 25, 2010, when looking at total outlets — comprised of U.S. supermarkets, drug stores and mass merchandisers, including Walmart — store-brand sales increased by nearly 2%, while dollar share advanced by almost half a point to a new record level. This brought total sales to $88.5 billion, according to the Nielsen data.
PLMA also said among these increases, private-label brand sales increased more than 2% and nearly 5% in supermarkets and drug store chains in 2010, respectively. Over the past decade, annual sales of private-label products have increased by 40% in supermarkets and by 96% in drug stores, PLMA said.
PLMA noted that while the numbers proved the growth of the private-label market, there is an estimated $15 billion to $20 billion in additional private-label sales that occur in channels not reported to the Nielsen databases, including warehouse clubs, limited-assortment stores, convenience stores and dollar stores. If these data were reported, the total sales likely would have produced a grand total exceeding $100 billion for 2010, PLMA said.
PLMA also noted growth was attributed to the recession, which forced consumers to alter their shopping habits, as well as "the extreme efforts by national brand marketers in 2010 to recapture some of the market share they lost to store brands over the previous years."
Whole Foods coaches shoppers on how to pick what they eat
ROCKVILLE, Md. — Michael Kiss, a chef who works at Whole Foods’ store in Rockville, Md., is one of the natural food supermarket chain’s army of “cooking coaches,” who are on staff to talk to customers about what kinds of food are available at the store and how to pick out the right kinds of food — something that’s helpful in a store known for carrying a dizzying variety of exotic ingredients. For Kiss, according to a recent Washington Post article, the job of a Whole Foods cooking coach is sometimes as simple as helping a recently widowed man pick out the right ingredients to make a quiche.
How supermarkets influence the way people eat has come a long way from free samples on toothpicks. Over the years, Americans have become increasingly conscious and selective about what they eat and how to eat well in general, with a special focus on food that is healthy and tastes good. Many supermarket chains like Supervalu, Hy-Vee and others have hired in-store nutrition experts and dietitians who can give store tours and assist customers looking to eat healthier diets or those who have special dietary needs due to such health conditions as diabetes or celiac disease.
Consumers continue to pamper their pets
Consumers may have tightened their belts in the current economy, but they aren’t skimping when it comes to their pets. The American Pet Products Association’s annual review of spending data revealed that overall spending in the pet category grew more than 6% to more than $48 billion in 2010.
More Americans own pets than ever before. The APPA said that the number of U.S. households that own a pet has increased by 2.1% to an all-time high of 72.9 million. And those pet owners are pampering their pets. Dog owners spend the most on their pets — an average of $364 a year. In 2010, there was a 30% gain in dollars spent on dog gifts, according to the APPA.
The APPA projected overall pet spending will increase 5% to exceed $50 billion in the coming year.
Pet owners are hungry for the “next big thing,” according to Bob Vetere, president of APPA. Pet foods offering more complete and balanced diets have grabbed a bigger share of the pet food market. Pet owners also are purchasing more pet health and beauty care products, including mouthwash and electric toothbrushes for dogs.
The APPA predicted strong growth for programmable feeding and drinking systems, automatic and battery-operated toys, self-cleaning litter boxes and self-warming pet mats.
The article above is part of the DSN Category Review Series. For the complete Pet Care Mid-Year Report, including extensive charts, data and more analysis, click here.