ACNielsen Research Finds U.S. Sales of Private Label Consumer Packaged Goods Growing Much Faster Than Branded Products.Business Editors SCHAUMBURG Schaum·burg A village of northeast Illinois, a suburb of Chicago. Population: 74,900. , Ill.--(BUSINESS WIRE)--Sept. 18, 2003 Branded Products Still Dominate, But Private Label Expanding Into and Leading Sales in More Categories ACNielsen ACNielsen is a global marketing research firm, based in Schaumburg, Illinois. This company was founded in 1923 in Chicago, Illinois, by Arthur C. Nielsen, Sr., in order to give marketers reliable and objective information on the impact of marketing and sales programs. U.S., an operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon of ACNielsen, a VNU VNU Volontaires des Nations Unies (French) VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch) VNU Virtual Network User business, today released its U.S. Trends in Private Label report, which shows that sales of private label consumer packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one (CPG CPG central pattern generators. ) are growing much faster than branded products. While branded products still constitute the majority of all CPG sales, private label products, also known as store brands, are not only enjoying faster sales growth, they are expanding into an increasing number of categories, becoming the share leader in more categories, and gaining an increased presence in more retail channels. Today's release of the ACNielsen U.S. private label study follows the release earlier this week of the ACNielsen global private label study. The chart below, based on an analysis of ACNielsen Homescan Homescan is a service provided by the ACNielsen company where members scan the barcodes on all their purchases with a special barcode reader. The store, price, quantity, and special deals are recorded with the products scanned and the information is transmitted weekly to the (R) consumer panel data, shows the five-year growth rate of private label products in the U.S. compared to that of branded products.
2002 vs. 1997 PL Products Branded
Products
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$ Volume Growth Rate 38% 19%
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Source: ACNielsen Homescan, all CPG products across all channels Since 1997, private label products have grown from having a presence in 69% of the categories tracked by ACNielsen to 75%, entering 88 new categories in that time. In 2002, private label had the dollar volume share lead in 25% of the categories in which it competed - up from 21% in 1997.
1997 2002
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Categories Tracked by ACNielsen 1,022 1,058
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Categories With PL Presence 709 797
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Percentage of Categories With PL
Presence 69% 75%
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Categories in Which PL is the $ Sales
Share Leader 146 197
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Percentage of Categories in Which PL
is the $ Sales Share Leader 21% 25%
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Source: ACNielsen Homescan, all CPG products across all channels Private label's initial success came from commodity-type products, such as milk, bread, cheese, and eggs. More recently, private label has begun to make inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into categories traditionally dominated dom·i·nate v. dom·i·nat·ed, dom·i·nat·ing, dom·i·nates v.tr. 1. To control, govern, or rule by superior authority or power: by branded products, such as cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). and baby food. However, Gail Zielinski, ACNielsen Homescan account director and author of ACNielsen's annual U.S. private label study, says the vast majority of private label's overall growth is coming from expanded sales in established categories. "Private label manufacturers are driving sales growth by focusing on categories that have been traditional strongholds for store brands. They're they're Contraction of they are. they're be introducing different package sizes and types, new flavors New Flavors - An object-oriented Lisp from Symbolics, the successor to Flavors, it led to CLOS. ["Reference Guide to Symbolics-Lisp", Symbolics, March 1985]. , and adding new, higher-priced premium private label products. In addition, several retailers are increasing their focus on providing in-store samples of their products and using other promotions to boost sales." The grocery channel owns the largest share of total private label consumer packaged goods sales. However, its lead is decreasing as other retail channels add private label products to their shelves. The dollar store, warehouse club store, and supercenter channels are generating the strongest growth in private label sales, albeit off of sales bases that are still relatively small.
Channel 1997 Share of 2002 Share of % Growth in PL
Total PL CPG Total PL CPG CPG $ Sales
All-Outlet All-Outlet 2002 vs. 1997
$ Sales $ Sales
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Grocery 80% 67% 16%
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Mass 6% 7% 59%
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Supercenters 4% 12% 284%
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Drug 4% 4% 29%
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Warehouse Club 1% 5% 460%
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Dollar 0% 1% 1,082%
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Convenience/Gas 0% 0% 11%
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Source: ACNielsen Homescan, all CPG products across all channels For information about purchasing the U.S. Trends in Private Label report, contact Jan Crawford at 847-605-5000. The news release about ACNielsen's global private label study and the study itself may be viewed at http://acnielsen.com/news/corp/2003/20030916.htm. ACNielsen, a VNU business, is the world's leading marketing information company. Offering services in more than 100 countries, the company provides measurement and analysis of marketplace dynamics and consumer attitudes and behavior. Clients rely on ACNielsen's market research, proprietary products, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns Noun 1. sales campaign - an advertising campaign intended to promote sales ad blitz, ad campaign, advertising campaign - an organized program of advertisements sales campaign n → campaña de venta . Note to Editors: Look for this press release and other ACNielsen news on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://acnielsen.com/news. |
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