Growth Of In-House Brands Squeezes Big Food

Supermarket private label brands in the U.S. historically have not been as important as in European countries. Private label accounted for 17 percent of U.S. sales last year, less than half their share in the U.K. and Germany. But supermarket shoppers are increasingly switching to generic brands, and big food companies are beginning to feel the pinch. Retailers like Walmart are already seeing a rise in sales of their own brands. As retailers allot greater shelf space for their own items, traditional manufacturer brands will see sales volumes decline. And retailers in a fierce competitive environment can point to the growth of their in-house brands to coerce suppliers to cut prices. [ Image credit: © Walmart  ]