How Store Brand Perishables Measure Up.

Buying store-labeled meat, milk, and chicken is as familiar and comfortable to most shoppers as buying branded hot dogs, branded yogurt, branded cereals, and branded laundry products. In the context of growing up in America, branded meats and poultry are new kids on the block.

Added value and highly differentiated perishables are seen differently -- for most shoppers, buying store brands of yogurt, hot dogs, take out foods and refrigerated pizzas involves making a quality trade-off to get the lower price. With the exception of Kraft cheese and Wonder bread, national brands don't have the long and strong consumer relationships in perishables that they have in groceries and other consumer products.

The ratings and comments suggest that products in any category can be differentiated by stores or by brands. Shoppers are beginning to talk about exceptional store brand products that they or their families actually prefer to national brand versions. Mothers are also telling us that they aren't paying much attention to kid's brand preferences for products that are eaten at home -- they are using brand names like Cheerio's as cereal flavor designators and saving money on the store brand versions -- a happening which is reflected in the growing sales of store brands in these categories.

* "We love Schnuck's bacon but it's the only store brand food we buy."

* "I've had more comments on my Giant brownies than any other kind at double the price. I'll never change."

* "My kids love ValueWise (Jewel) mac and cheese."

* "Store brand Weis real mayonnaise is the best."

Ratings of store brand perishables comparability with national brands where 5=Store brands are as good or better

In the table above, Columns 2 and 3 show the mean store brand ratings by consumers aged 31-49 and 50+. Note that the older consumers rated store brands lower (or less equivalent) than the younger respondents in almost all categories.

Columns 4 and 5 show the mean ratings for middle and higher income consumers. There was less rating difference by income than by age. Higher income respondents gave store brands higher ratings in several categories but significantly lower ratings on take-out foods. Since higher income respondents are better able to afford and more likely to use take out foods, this difference suggests a problem for super-markets.

More processed foods in long-advertised categories such as hot dogs; yogurt, pizza and packaged lunchmeats were rated lower or further from national brand quality.

In the U.S., national brands have more appeal and stronger consumer relationships than store brands. But their power is much weaker in some categories than in others. Today shoppers are more likely to feel like free agents about their brand choices. The future appears to be open to whoever consistently delivers the best product at the best price and is able to develop relationships with their shoppers.

Product          Mean    Ages   Ages  Middle  Higher
                for All  31-49  50+   Incone  Income
Fresh meat        4.5     4.6   4.3    4.5     4.5
Fresh poultry     4.3     4.5   4.1    4.3     4.4
Cakes             4.1     4.0   4.0    3.9     4.3
Deli-type
salads            4.1     4.5   3.5    4.2     4.0
Deli-sliced
meats             4.0     4.1   3.6    3.9     4.0
Shredded
cheeses           4.0     4.1   3.8    3.9     4.0
Variety bulk
cheeses           4.0     3.9   4.0    3.8     3.8
Sliced cheeses    3.9     3.9   3.6    3.9     3.4
Breads            3.8     3.7   3.6    3.5     4.3
Cookies           3.8     3.9   3.5    3.7     3.9
Take-out
Foods             3.8     3.9   3.3    3.9     3.3
Packaged
lunchmeats        3.5     3.7   3.1    3.2     3.6
Refrigerated
pizza             3.5     3.8   2.9    3.5     3.5
Sausage           3.4     3.4   3.2    3.0     3.7
Yogurt            3.4     3.7   3.0    3.5     3.2
Hot Dogs          3.1     3.2   3.0    2.9     2.9