‘Inexpensive store brands’ threaten big name food brands

An article in the Wall Street Journal yesterday recounted the struggles of venerable American food brands such as Kraft Macaroni & Cheese, Campbell’s Soup and Conagra Brands’ Chef Boyardee line while noting the value of private brand food products.

“High-end consumers are shifting toward fresher items with fewer processed ingredients while cost-conscious shoppers are buying inexpensive store brands,” the article emphasized.

The Wall Street Journal pointed out that leading manufacturers of consumer packaged goods have been slow to respond to changing consumer tastes, including the demand for less-processed, clean label products. “At the same time, they faced low-cost store brands — or ‘private label’ products — from retailers such as Costco Wholesale Corp., Wal-Mart Stores Inc. and regional grocers that sell copycat products,” the article stated, adding that private brand shelf space has grown 3.5 percent a year since 2012.

To learn, more read the article in the Wall Street Journal.