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The Premiumization of Private Label

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Two years ago, we examined the long-term growth trends and structure of the private label food marketplace. At the time, we found distinct patterns based on permutations of market share and growth. In this issue, we will revisit those performance segments and see how they have been doing more recently, but we will also ask a more targeted set of questions related to the quiet hope that private label is now ready to premiumize: is private label actually experiencing the post-recession price premiumization that some foretold? If so, why are certain categories exhibiting this phenomenon while others aren’t and how much of this premiumization can be attributed to premiumization of product quality?

What we have found should be inspiring to retailers in general but very concerning to CPG companies, which should be very careful not to assume that, in historically brand-dominated categories, private label is still not a competitive issue.

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