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Big gains chalked up in consumables.

NEW YORK -- The expanding convenience food departments in chain drug stores are creating new opportunities for sales of private label products.

The Private Label Manufacturers Association reports that seven of the top 10 categories in terms of private label dollar sales gains in drug stores were food categories.

Sales of private label milk in drug stores increased 88.2% in 2014, to $26.4 million, according to PLMA's 2015 Private Label Yearbook. Milk ranked second on the list of private label dollar volume gainers in drug stores, and first in unit volume gains. Private label products account for 5.1 % of drug store milk sales.

Drug store sales of private label ready-to-serve prepared food increased 67.8%, to $1.6 million. (Only categories with sales of at least $1 million were included in the list.) That represents 3.6% of category sales.

Other food categories on the top 10 list were: dairy snacks, spreads and dips (sales up 49%, to $1.3 million); cereal (up 47.3%, to $4.9 million); shortening and oil (up 40.7%, to $5.2 million); table syrups and molasses (up 37.2%, to $2.2 million); and frozen vegetables (up 28.4%, to $2.6 million).

Among these categories, private label market share is highest in the table syrups and molasses category, where store brands account for 56.7% of sales.

In terms of unit sales, all of the top-10 categories for private label sales growth were grocery categories, if ice is included. In addition to the dollar sale gainers mentioned above, unit gainers included pasta, prepared food, breakfast food and cottage cheese, sour cream and toppings.

Market Track data shows that drug chains are including their store brands when they promote grocery products in their advertising circulars.

For the 52 weeks ended October 17, store brands accounted for 10.5% of the ad blocks in CVS/pharmacy circulars, 6.3% in Rite Aid Corp. circulars and 8.9% in Walgreens circulars.

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Publication:Chain Drug Review
Date:Nov 9, 2015
Previous Article:Promos reflect increasing clout of PL at drug chains.
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