Store Brands Market Share
Transcription
Store Brands Market Share
EXECUTIVE SUMMARY Store brands gains widen vs national brands. Sales hit new highs in all outlets. Store brands sales in all major retail channels continue their upwards trend, setting new records across the board for annual revenue. When 2014 came to a close, store brands had accounted for nearly three billion dollars in incremental sales overall, an increase of +2.5% over the previous year and more than twice the gain recorded by national brands. Total sales of private label were $115.3 Annual Percent Rate Sales Growth billion according to the latest industry data from Nielsen. As a result, store brand dollar share moved up across all outlets combined – consisting of Store Brands All Outlets Combined +2.9% +2.2% +2.2% +1.2% supermarkets, drug chains, mass merchandisers, and the club and dollar National Brands 2012 2013 +2.5% +1.1% 2014 store channels. Source: Nielsen/PLMA © Copyright 2015 PLMA Over a three-year period, store Dollar Volume in Billions brands sales across the combined retail outlets have increased by $5.5 billion, moving store brand dollar Total Store Brands: All Channels Combined $109.8 $112.4 $62.1 $61.0 $59.6 market share from 17.3% to 17.7%. $47.7 $44.8 $42.1 The run-ups are much the same in the $115.3 individual channels. Over that period, the annual sales volumes for $8.1 $8.3 $8.3 2012 2013 2014 store brands have risen by $2.5 billion in supermarkets and risen by $200 million in drug chains. Supermarkets Drug Chains Mass, Club & Dollar When it came to units, store brands and national brands alike saw total unit volumes decline across all channels for 2014 and store brands unit share was slightly lower at year’s end. Data for PLMA’s 2015 Private Label Yearbook were compiled by Nielsen for the 52 weeks ending December 27, 2014. Numbers and percentages have been rounded by Nielsen where necessary and totals may exceed 100% in some instances. Source: Nielsen/PLMA © Copyright 2015 PLMA The contrast between dollars and units was particularly pronounced in the supermarket channel, where annual store brand sales rose +1.8% – for an increase of $1.1 billion – while volume in terms of units tapered by -2.1%. Store Brands Market Share Dollar Share 23.1% Measured across all brands and outlets reported by Nielsen, unit 19.5% volume fell off as national brands Unit Share 16.5% 17.3% 21% 17.7% units dropped 550 million and store brands lost 530 million units, for a total loss of nearly 1.1 billion units. The disparity between revenues increasing while overall unit volume remains flat or declines may be reflective of several factors, especially in a year when price inflation did not Source: Nielsen/PLMA Supermarkets Drug Chains All Outlets Unit market share for store brands was 23.1% in U.S. supermarkets, while dollar share increased to 19.5%. In drug chains unit share was 17.3% and dollar share increased to 16.5%. Unit share was 21% for all outlets combined as dollar share grew to 17.7%. Source: PLMA/Nielsen © Copyright 2015 PLMA have a particularly negative impact on Savings for Consumers consumers. These factors could range Last year, shoppers who reached for the store brand version from trading up to specialty and of their favorite food and non-food grocery products rather premium priced items at the high end – whether organic, sustainable, gourmet, better-for-you, or simply “new” and innovative products – to shoppers across the economic spectrum pursuing savings by purchasing larger sizes and club packs, or by migrating their regular shopping to patronize limited assortment stores and discount than the national brand enjoyed an estimated $27 billion in savings. Ongoing research by PLMA consistently reveals that on a trip to a typical supermarket, shoppers save about one-third on basic grocery and household items by choosing store brands over national brands. The difference is marketing costs incurred by national brand makers that are passed on to consumers. Big CPG companies spend about 25 cents of every dollar to build brand equity. They do this to satisfy shareholders and Wall Street analysts who place a premium on the perceived value of their brands. channels not counted by Nielsen. Source: Nielsen/PLMA © Copyright 2015 PLMA Undoubtedly, it’s a combination of such factors at work to produce the statistical results. But the clear evidence that consumers overall are buying less in the combined channels is almost certainly an indication that some of the cautious behaviors that were adopted post-recession by shoppers at the value end continue, in spite of a general return of optimism with regard to the economy and the future. Irrespective of trends affecting unit volumes, however, the fact remains that according to the benchmarks most closely watched by industry analysts – dollar growth and dollar share – 2014 was once again a strong year for store brands growth in U.S. grocery retailing. Supermarkets Store brands sales gains brought U.S. supermarkets a $1.1 billion dollar increase in annual revenues in 2014. Private label sales were ahead +1.8%, outpacing the national brands at +1.1%. As a result, store brand dollar share rose to 19.5%, an all-time high. The gain brought annual sales of store brands to $62.1 billion, also a record. National brands were up about $2.8 billion. Store brands accounted for 28% of all new dollars coming into the channel last year. Source: Nielsen/PLMA © Copyright 2015 PLMA Over the past three years, annual store brands sales in supermarkets have increased $2.5 billion – more than +4% – pushing dollar share from 19.1% to 19.5%. During the same period, annual sales for national brands gained +2%. Unit volume in supermarkets in particular, which has declined for a number of years, continued to trend negative. A loss of nearly 890 million units overall impacted store brands and national brands alike, which were off 560 million units and 330 million units respectively. Private label unit share came in at 23.1%; it has remained above 23% for the past three years. Looking at individual departments across the store, store brand dollar share was ahead or even in seven of the eleven sectors, led by fresh meat (+3.4 points), packaged meat (+0.6 points), dairy (+0.4 points), and deli (+0.2 points). In terms of units, store brand market share was up or even in nine of the eleven, led by fresh meat (+7.6 points), deli (+1.2 points), fresh produce (+1.1 points), and general merchandise (+0.7 points). Dairy, which was down -0.7 points in private label share, accounted for one third of the total channel decline in unit sales for the year. The top ten categories for private label dollar volume gains in supermarkets were: fresheners & Source: Nielsen/PLMA © Copyright 2015 PLMA deodorizers; fresh meat; nuts; coffee; Supermarkets by Region dairy snacks; spreads & dips; ready-to- In the nine geographical divisions that Nielsen tracks, store serve prepared foods; fresh eggs; brand dollar share in supermarkets grew in six, with the packaged meat; baby food; and kitchen gadgets. best performance in the Middle Atlantic, which was up +0.5 points. The highest shares per se were in the East South Central (23%) and Mountain (22.8%) sectors of the Seven of these ten likewise appeared U.S.; both were significantly higher than the national on the top ten list of categories for average of 19.5% for the channel. One region was even in gains in private label unit volume – a dollar share and two of the regions declined. list that also included motor vehicle In units, store brand share was up only modestly (+0.1 care & accessories, family planning, points) in two sections, the West South Central and the and bottled water. Middle Atlantic. The highest overall unit market shares were recorded in the East South Central (26.7%) and Mountain regions (26%), both ahead of the channel-wide average of 23.1%. Seven of the regional divisions ceded unit share. Source: Nielsen/PLMA © Copyright 2015 PLMA Drug Chains As they have for nearly a decade, store brands continued to be the principal growth engine in the drug chain channel. Private label dollar volume was up +0.3% compared to a decline of -0.1% for national brands. Consequently, store brand dollar share rose to 16.5%, a new high. The 2014 performance raised the annual sales of store brands in the channel to $8.3 billion, another high. Over the past three years, annual private label sales in the drug channel have increased by some $200 million. Private label has accounted for 40% of all annual revenue growth in the entire channel during that period. As in supermarkets, units retreated despite the increase in dollar sales. National brands and private label fell about the same: national brands were off -1.8% and store brands gave up -2.2%. As a result, store brand unit share declined slightly from 17.4% to 17.3%, though it remains considerably improved as compared to 2012, when it was 16.7%. Looking at the eleven departments in the drug channel, store brands gained in dollar share in six and declined in five. The largest gains were seen in dairy (+1.8 points), general merchandise (+0.8 points), non-foods grocery (+0.7 points), deli (+0.5 points) and fresh produce (+0.4 points). However, a drop of Source: Nielsen/PLMA © Copyright 2015 PLMA four tenths of a point in the largest Drug Chains by Region single department, health and beauty Looking at the nine geographical regions tracked by aids, which accounts for more than Nielsen, store brand dollar share in drug chains was up in half of channel sales, weighed heavily on the overall outcome. As for departments in store brand unit share, seven were down and four were up or even; again, health and beauty aids, which was off five tenths, depressed the channel-wide total for private label. three divisions: the Middle Atlantic region (+0.4 points), New England (+0.3 points), and South Atlantic (+0.2 points). The highest dollar shares were in New England and the West North Central region, both at 17.6% – considerably higher than the 16.5% national average for dollar share in the drug channel. Six sections were off in dollar share. As for units, three regional divisions were up, led by the Middle Atlantic, which tacked on +0.4 points. Leading the In individual product categories, the regions for overall unit market share was the West North top ten for store brand dollar volume Central at 19.2%, as compared to the national average of growth in the drug channel was a 17.3%. Six of the nine regions saw private label unit share mixed bag of large and small, familiar decline. Source: Nielsen/PLMA © Copyright 2015 PLMA and unfamiliar, food and non-food sectors: watches & timepieces; milk; ice; ready-to-serve-prepared foods; dairy snacks; spreads & dips; cereal; light bulbs & telephone accessories; shortenings & oil; table syrups & molasses; and frozen vegetables. Looking at the leading unit volume gainers, five of these were also on the top ten list, and were joined by coffee; pasta; prepared foods (dry mixes); breakfast foods; and cottage cheese, sour cream & toppings. PLMA’s 2015 Private Label Yearbook © Copyright 2015 PLMA Editor Executive Summary Production Director Research Director Dane Twining Joe Azzinaro Alisa R. Svider Tom Prendergast Published by : Private Label Manufacturers Association 630 Third Avenue, New York, NY 10017 Telephone: (212) 972-3131 Fax: (212) 983-1382 www.plma.com