Brian Sharoff: the president of the private label manufacturers association says that store brands continue to offer an alternative to cash-strapped consumers seeking quality products.

What is the state of the private label category?

Brian Sharoff: Actually, the industry is feeling very, very good. Market share trends have been extremely favorable. The statistics coming out of Nielsen and IRI both confirm that store brands have grown considerably over the past year. The gain has been nearly 10% in dollars. Obviously, many consumers are turning to store brands as a result of the recession but surveys are showing that consumers expect to stay with store brands when good times return. Our own PLMA study, which was done by GfK Roper, indicates that 90% of consumers will stick with retailer brands and analysis of past recessions in the early 1990s and early 2000s confirms that consumers stay with private label when recession pressures ebb.

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For retailers and manufacturers, this trend means more opportunities than ever before for products that can carry the store brand. That's good news for suppliers. For retailers, the trend means they must pay greater attention than ever before to shelf allocation and in-store promotion.

How is the current economic situation helping or hurting the category?

There is no doubt that the sudden downturn in the market last fall left many people without jobs or with tremendous fear of losing their jobs. That undoubtedly pushed consumers to try to save money and that, in turn, encouraged many shoppers to buy store brands for the first time. The statistics indicate this clearly.

However, it would be a mistake to believe that the economy is the sole reason for the surge in store brands. The fact is that retailers have been building their own brands for many years and with that commitment to quality in products and packaging, the result has been a transformation in public attitudes. Fifteen years ago, less than 20% of consumers considered themselves frequent private label shoppers. Today that percentage is nearly 60%. That is the basis of store brands growth and popularity.

Tell us about the private label show. Why should retailers go to the show?

Trade shows can be very special experiences, especially when they reflect and represent an industry with a mission. PLMA's Private Label Trade Show, which is being held in Chicago this year from Nov. 15 to 17, is a unique chance for buyers, sellers and everyone else involved in the making and distribution of store brands to come together to share ideas. From a practical point of view, retailers benefit by seeing products and making contacts. But it goes beyond that; PLMA offers an unusual Idea Supermarket, which enables retailers and wholesalers to see private label programs from supermarkets, drug chains and mass merchandisers around the world.

PLMA's Executive Education Program facilitates discussions among retailers and manufacturers to address common concerns. The New Product Expo that PLMA organizes gives retailers a chance to identify new product concepts. Some retailers come to the show to meet new suppliers. Others come to meet their existing suppliers. There are many different reasons for attending but one reason is overriding: retailers and manufacturers need to have a place to concentrate on their private label objectives and PLMA's annual trade show has been providing that for 30 years.

Tell us about the new program at the show. Who benefits from this?

The new program at this year's show is PLMA's Innovation Hall. It has become evident that as store brands become more popular, everyone has to be more conscious of logistics, shelf allocation, market research, quality control and a host of other factors above and beyond product assortment. Innovation Hall brings together companies who specialize in technology and services so that manufacturers and retailers alike can see what is available and how it can help their companies. Who benefits? Everyone, including the consumer who will be able to find more store brands and the best possible prices.

How can private label manufacturers keep the momentum going?

Momentum is very important and the best way for manufacturers to keep moving forward is to manage their private label programs as brands. This means working closely with retailers to identify new products and categories that will appeal to consumers. It means learning how to be best-in-class. It means changing the company mindset from being a private label supplier to being a store brand marketer. Many PLMA manufacturers are doing just this and it is one more reason why private label has grown over the past year.