ARLINGTON, VA. - FMI – The Food Industry Association released its 2020 Power of Private Brands report, which identified that there is an increased consumer demand for private brands amid the COVID-19 pandemic.
“The rise in demand for private brands in part due to the COVID-19 pandemic has created a tipping point,” said Doug Baker, vice president of industry relations for FMI. “Now is the time for senior leaders in private brands to energize their company and create private brand ambassadors from the C-suite to marketing and merchandising to frontline store-level personnel.”
The report was compiled with sales data, consumer and industry survey responses and industry interviews. Key findings include:
Ecommerce and private brands: The majority (83%) of food retailers expect to boost private brand strategies for ecommerce as more consumers utilize online grocery shopping options. Retailers are looking to enhance the merchandising and assortment of private brands in their online grocery shopping experiences.
Assortment Opportunity: Almost all retailers (97%) are rethinking private brand assortments and supplier strategies because of experiences during the COVID-19 pandemic. About 77% of private brand retailers said they plan to focus more on price/value-oriented items and 73% are focused on items that support home cooking and meal preparation. More than 83% of food retailers said fresh foods, such as bakery and deli, represent a major opportunity for private brands.
A Role for the C-Suite in Private Brands: When asked how important private brands are to their organization, 93% of food retailers said either extremely or very important. Building on enhanced shopper interest in private brands, food retailers can emphasize private brands from the store level up through the C-Suite.