FMI – The Food Industry Association has released its 2020 Power of Private Brands report which finds increased consumer demand for private brands due to the COVID-19 pandemic and opportunities for senior leaders in food retail and manufacturing to expand their private brands programs.
“The rise in demand for private brands in part due to the COVID-19 pandemic has created a tipping point,” said Doug Baker, VP 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 2020 Power of Private Brands report, which compiles sales data, consumer and industry survey responses and industry interviews, finds food retailers and suppliers have an opportunity to build on this momentum around private brands and plan to do so.
E-commerce and private brands
The majority (83 percent) of food retailers expect to boost private brand strategies for e-commerce 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.
Almost all retailers (97 percent) are rethinking private brand assortments and supplier strategies because of experiences during the COVID-19 pandemic. About 77 percent of private brand retailers said they plan to focus more on price/value-oriented items and 73 percent are focused on items that support home cooking and meal preparation. More than 83 percent 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
Executives should look to foster a culture of private brands within their companies. When asked how important private brands are to their organization, 93 percent 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. The 2020 Power of Private Brands outlines ways to prioritize private brands and key questions for senior leaders to further enhance private brands programs. Learn more at FMI.org/PrivateBrands.