Nine in 10 food retailers and manufacturers expect to “significantly” or “moderately” increase investment in private brands over the next two years, according to FMI’s 2021 Power of Private Brands report.
FMI — The Food Industry Association, Arlington, Va., released findings from its annual industry survey and report, demonstrating that store brands expect to play a big part of the food industry’s future. The report finds a renewed commitment to investing in private brand programs such as more than half of respondents said they will be investing in boosting private brands via e-commerce and nearly 60% said they will be adding innovative new private brands.
The report found an urgency for suppliers and retailers to work together too, with more than three-fourths saying they will make a strategic investment in changing or rethinking private brand assortments and supplier strategies in response to the pandemic, and 70% said they will be making longer-term commitments to supplier arrangements and engaging more closely with existing suppliers.
Last year’s Power of Private Brands report sang a different tune, as retailers and manufacturers dealt with impacts of the pandemic. The report showed brands focusing more on value propositions and cooking at home, which certainly played out during the year. In that report, 83% of food retailer executives said fresh foods, such as bakery and deli, represented a major opportunity for private brands.
Including educational sessions on private label trends in 2021, FMI recently announced registration is open for its Private Brands Summit coming up in September.
“During the pandemic, many more consumers gave private brands a try, and this has resulted in new acceptance among today’s shoppers,” said Doug Baker, vice president of industry relations for FMI. “At the same time, the rise of e-commerce and home cooking offer the food industry an opportunity to further grow their private brands programs.”