Retail Grocer Private-Label Brands Are An Evolving Threat To Major CPG Brands

Big CPG companies in the U.S. are beset on all sides by competition – from fast-moving start-ups exploiting evolving consumer eating trends, and also from private-label or retail store brands. Industry expert Victor Martino says the threat from grocery chain private-label is serious. It represents a paradigm shift in consumer attitudes about products and brands. Martino says U.S. consumers are getting more like Europeans who generally view private brands as simply brands. Private brand penetration there is approaching a 40 percent share of branded CPG sales. In the U.S., store-brand innovators like Trader Joe's, Kroger, Albertsons, Costco and Whole Foods – and now Walmart and German grocery chains Aldi and Lidl – are offering something beyond private label: they are quality, lower-price products that compete seriously with the big brands. Martino offers some insights for the name brand players on how to compete effectively. [Image Credit: ©   Kroger]