Why The Timing is Right for Private Label Pet Foods
Offering a premium private label pet food is in tune with shopper purchasing patterns, but also builds store loyalty.
Retailers’ private brands accounted 23.4% of all units sold in mass market doors in 2020, according to NielsenIQ—maintaining and in some categories exceeding market share even during the pandemic.
Private label pet food produce 11.1% of private label dollar share and 15.4% of overall pet care in all retail doors (which jumps to 18% in just mass, club and dollar stores), according to the PLMA. There is ample potential to grow that share with well-positioned owned brand ranges.
Data from Alphia supports accelerated growth in private label pet food brands in all major channels while brand names decline. Today’s private labels are no longer lower price alternatives to name brands, but rather respected labels.
The truth is, according to Alphia, more and more consumers perceive private label brands as equal to national brands. Consumers looking to save money without skimping on quality can turn to the alternatives that private label pet food offers.
Retailers including Target, Costco and Kroger are just a few examples of those who are building their own private label pet brands to serve the escalating demand. Target, in fact, rolled out Kindfull last year with a natural positioning akin to its Good & Gather food and beverage assortment.
With supply chain issues lingering and the threat of higher prices looming, private labels can offer alternatives to out-of-stocks on national brands while serving up value-pricing. Value doesn’t necessarily mean the least expensive to today’s shopper rather a fair price for quality products.
Without the need for supporting national advertising budgets, retailers can control pricing and margins with proprietary brands. Because retailers are in control of the assortments, they can adjust quickly to market demands—and test out new items seamlessly.
Especially in today’s market, house brands are trusted by loyal consumers who go to that retailer specifically for a preferred product. That can be the case with premium products where there are few established national brand names. And shelf adjustments can be made quickly without the need to deal with manufacturers.
To learn more about why private label is the biggest opportunity in pet food at retail read the post here.