Study: Consumers Can Save 35 Percent On Fall Grocery Bill Buying Store Brands

NEW YORK, Oct. 27 /PRNewswire-USNewswire/ — With the kids back in school and winter just around the corner, a new survey of supermarket prices on twenty-five commonly purchased items found that shoppers could save more than 35 percent by buying the retailer’s brand instead of the national brand.

Want a hearty breakfast for the family without breaking the bank? Store brand breakfast cereal and refrigerated orange juice cost only $4.91 in the store survey compared to a whopping $7.13 for the same national brand products.

How about lunch? You can save $3 by choosing the store brand. Hot dogs and hot dog buns, along with a 12-pack of soda costs $10.53 for the national brand items, but only $7.52 for the private label products.

But store brand savings go beyond the food aisles. When kids bring home the germs, the survey shows that shoppers buying cold and flu medication, hand sanitizer and nasal spray could spend $18.47 for national brands, but only $10.65 for the same products sold under the retailer’s brand.

The research, conducted by the Private Label Manufacturers Association, tracked the pricing on grocery and household items at a typical supermarket. The results indicate that consumers buying the store brand would save $32.93 on average on the total market basket, representing savings of 35.3 percent when compared to weekly purchases of national brands in the same categories. (Click here to download the full release and price comparison chart).

Included in the survey were food items such as fruit cups, peanut butter, grape jelly and juice boxes, in addition to non-foods such as vitamin C, cough drops and facial tissue. Savings on individual products ranges from 13 percent (hot dogs) to 66 percent (nasal spray).

A leading national brand product was compared to a similar store brand product in each category and prices were adjusted to account for all known discounts, coupons and promotions available for each of the weeks included in the study. The survey was repeated on a weekly basis during a recent 4- week period in a suburban supermarket located in the northeast.

Annual sales of store brands have climbed to $85 billion in 2009, according to the latest industry statistics, and the products accounted for an unprecedented 23 percent of items sold in U.S. supermarkets. Rather than a temporary effect of the economy, there are indications that retailers are winning new adherents to their brands – even among die-hard national brand loyalists – as more and more shoppers give them a try and find satisfaction with the high quality of the products.

Demonstrating the products’ growing appeal to America’s shoppers, the October 2009 Consumer Reports magazine documented in blind tests how consumers time and again found that retailer’s brands were equal to or better than leading national brands in terms of taste. (Link to the full story here)

A recent study by GfK|Roper found that 91 percent of shoppers who say they switched from buying name brands to buying store brands during the past year will continue buying the store brand after the recession ends. Based on a poll of 800 grocery shoppers, the survey identified quality as a major factor influencing the decision to purchase store brands.

The Private Label Manufacturers Association is the industry trade association devoted exclusively to store brands. Founded in 1979, PLMA today represents over 3,000 companies who are involved in the manufacture and distribution of store brand products. The products supplied by PLMA members include food, beverages, snacks, health and beauty aids, over-the-counter drugs, household cleaners and chemicals, outdoor and leisure products, auto aftercare and general merchandise.

Source: Private Label Manufacturers Association