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Private Label Beverages - US - December 2013

Published By :

Mintel

Published Date : Dec 2013

Category :

Non-Alcoholic Drinks

No. of Pages : 121 Pages


Stiff competition from global beverage companies means retailers have to work very hard to compete in the private label beverage category. Addressing the needs of key demographic groups, offering products that meet consumer needs for value, quality, and more, as well as playing on the inherent advantages of being a retailer will help address these challenges.
Table of Content

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations

Executive Summary
The market size and forecast for private label beverages
Figure 1: Total US sales and fan chart forecast of private label beverages, at current prices, 2009-18
Milk dominates but rising stars offer opportunities
Figure 2: Private label beverage sales as a percentage of total MULO sales, by top five segments, 2013
Innovation drives growth segments
Figure 3: MULO sales of private label beverages, by top five segments, 2011 and 2013
The consumer
Figure 4: Proportion of store brand beverages bought in a shopping trip, by gender and age, September 2013
Store brands need more than low price to maintain sales
Figure 5: Consumer attitudes toward store brand drinks, September 2013
What we think

Issues and Insights
How can retailers increase household penetration of private label drinks?
Issues
Insight: Tailor products to high-user potential demographics
What can be done to improve the quality perception of private label drinks?
Issue
Insight: Position products for more than just value
How can retailers better compete with name brands?
Issue
Insight: Capitalize on retailer advantages

Trend Applications
Trend: Guiding Choice
Trend: Make it Mine
Mintel Futures: Brand Intervention

Market Size and Forecast
Key points
Share of overall MULO market decreasing
Figure 6: MULO sales and forecast of total and private label beverages, at current prices, 2009-13
Sales and forecast of private label beverages
Figure 7: Total US retail sales of private label beverages, at current prices, 2009-18
Figure 8: Total US retail sales of private label beverages, at inflation-adjusted prices, 2009-18
Fan chart forecast
Figure 9: Total US sales and fan chart forecast of private label beverages, at current prices, 2009-18

Market Drivers
Key points
Shrinking food budgets lead many to store brands
Product innovation may convince more consumers to try store brand
Figure 10: Growth in new beverage product launches, 2008-2012

Segment Performance
Key points
Some segments grow, some fall as private label beverage sales hold steady
Sales of private label beverages, by segment
Figure 11: MULO sales of private label beverages, by segment, 2011 and 2013

Segment Performance – Milk, Non-dairy Drinks, Yogurt Drinks
Key points
Private label market share shrinking after gaining ground in 2011
Figure 12: MULO sales of total and private label milk, non-dairy drinks, and yogurt drinks, at current prices, 2009-13
Figure 13: MULO sales and forecast of private label milk, non-dairy drinks, yogurt drinks, at current prices, by segment, 2009-18

Segment Performance – Water
Key points
Private label water continues to gain ground
Figure 14: MULO sales of total and private label water, at current prices, 2009-13
Figure 15: MULO sales and forecast of private label water, at current prices, by segment, 2009-18

Segment Performance – Juice and Juice Drinks
Key points
As sales drop, so does private label’s share of market
Figure 16: MULO sales of total and private label juice and juice drinks, at current prices, 2009-13
Figure 17: MULO sales and forecast of private-label juice and juice drinks, at current prices, by segment, 2009-18

Segment Performance – Tea and Coffee
Key points
Despite growth, private label share of tea and coffee remains constant
Figure 18: MULO sales of total and private label tea and coffee, at current prices, 2009-13
Figure 19: MULO sales and forecast of private label tea and coffee drinks, at current prices, by segment, 2009-18

Segment Performance – Others
Key points
Figure 20: MULO sales of total and private-label carbonated beverages and energy drinks, at current prices, 2009-13
Figure 21: MULO sales of total and private label alcoholic beverages, at current prices, 2009-13
Figure 22: MULO sales of total and private label sports, nutritional, performance drinks, at current prices, 2009-13

Retail Channels and Leading Companies
Key points
Two thirds of store brand beverage sales are in the supermarket channel
Figure 23: Supermarket sales of total beverages and private label beverages, at current prices, 2009-13
Consumers not committed to single channel
Great Value, Target represent differing private label strategies
Figure 24: Consumer purchase of selected store brands, by company, by store brand usage levels, September 2013

Innovations and Innovators
Private label beverages leading innovation growth until 2013
Figure 25: Change in new product launches, by brand versus private label, 2008-13*
Figure 26: Share of new beverage product launches, by brand versus private label, 2008-13*
Most private label categories show growth in new products
Figure 27: New product launches of name brand beverages, by category, 2008-13
Figure 28: New product launches of private label beverages, by category, 2008-13*
Retailers keep pace with name brands in flavored water introductions
Flavored, seasonal coffee varieties enhance quality perceptions

Marketing Strategies
Overview of the brand landscape
Consumer recognition of name brands versus store brands
Figure 29: Consumer brand recognition, September 2013
Theme: Generic replaced by authenticity
Brand example
Figure 30: Archer Farms by Target, Youtube ad, 2013
Theme: Positioning store brand as a brand in and of itself
Brand example

Consumer Purchasing of Store Brand Beverages
Key points
Store brand beverage buying still lags behind store brand food
Figure 31: Proportion of store brand beverages bought in a shopping trip, September 2013
Young consumers, particularly men, drive store brand sales
Figure 32: Proportion of store brand beverages bought in a shopping trip, by gender and age, September 2013
Milk, juice, bottled water lead store brand drink categories in consumer use
Figure 33: Consumer use of store brand drink, by category, September 2013
Figure 34: Consumer use of store brand drink, By frequency, by category, September 2013
Retailers need new approach in some categories to appeal to women
Figure 35: Consumer use of store brand by drink category – Frequent usage, by gender, September 2013
Hispanics and non-Whites present market opportunity
Figure 36: Proportion of store brand beverages bought in a shopping trip, by race/Hispanic origin, September 2013
Figure 37: Consumer use of store brand by drink category – Frequent usage, by race/Hispanic origin, September 2013

Change In-store Brand Purchasing Behavior
Key points
Consumers, particularly young, buying more store brands in 2013
Figure 38: Change in store brand purchasing behavior, by age, September 2013
Reasons for changing buying habits vary slightly by age
Figure 39: Consumer reasons for buying more store brand drinks in 2013, by age, September 2013
Figure 40: Consumer reasons for buying less store brand drinks in 2013, by age, September 2013

Store Brand Purchasing Behavior
Key points
Improving quality perceptions may mean opportunity for market growth
Figure 41: Consumer attitudes on store brand quality, by age, September 2013
Higher-quality store brands will drive retailer business
Figure 42: Store brand purchasing behavior, by gender, September 2013
Figure 43: Store brand purchasing behavior, by age, September 2013
Taste perceptions still holding store brand beverages back
Figure 44: Consumer attitudes toward store brand drinks, September 2013
Figure 45: Store brand purchasing behavior, September 2013

Consumer Attitudes toward Store Brand Beverages
Key points
Store brands need more than low price to maintain sales
Figure 46: Consumer attitudes toward store brand drinks, September 2013
Most consumers comfortable with others knowing of store brand use
Figure 47: Consumer attitudes toward store brand drinks, September 2013
Those most likely to use store brands also most secretive about it
Figure 48: Agreement with consumer attitudes toward store brand drinks, by age, September 2013
Figure 49: Agreement with consumer attitudes toward store brand drinks, by store brand usage levels, September 2013
Figure 50: Agreement with consumer attitudes toward store brand drinks, by race/Hispanic origin, September 2013

Cluster Analysis
Unengaged Consumers
Demographics
Characteristics
Opportunity
Value Driven Purchasers
Demographics
Characteristics
Opportunity
Undercover Users
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 51: Target clusters, September 2013
Figure 52: Proportion of store brand beverages bought in a shopping trip, by target clusters, September 2013
Figure 53: Incorrect identification of food and drink brands, by target clusters, September 2013
Figure 54: Consumer purchase of selected store brands, by company, by target clusters, September 2013
Figure 55: Consumer use of store brand by drink category – Frequent usage, by target clusters, September 2013
Figure 56: Consumer use of store brand by drink category – Casual usage, by target clusters, September 2013
Figure 57: Store brand purchasing behavior, by target clusters, September 2013
Figure 58: Change in store brand purchasing behavior, by target clusters, September 2013
Figure 59: Agreement with consumer attitudes toward store brand drinks, by target clusters, September 2013
Figure 60: Consumer attitudes on store brand quality, by target clusters, September 2013
Cluster demographic tables
Figure 61: Target clusters, by demographics, September 2013
Cluster methodology

Appendix – Market Drivers
Consumer confidence
Figure 62: University of Michigan’s index of consumer sentiment (ICS), 2007-13
Unemployment
Figure 63: US unemployment rate, by month, 2002-13
Figure 64: US unemployment and underemployment rates, 2007-13
Figure 65: Number of employed civilians in US, in thousands, 2007-13
Food cost pressures
Figure 66: Changes in USDA Food Price Indexes, 2011-14
Obesity
Figure 67: American adults by weight category as determined by body mass index (BMI), 2008-Oct. 28, 2013
Childhood and teen obesity – highest in decades
Figure 68: Prevalence of obesity among children and adolescents aged 2-19, 1971-2010
Racial, ethnic population growth
Figure 69: US population by race and Hispanic origin, 2008, 2013, and 2018
Figure 70: Households with children, by race and Hispanic origin of householder, 2012
Shifting US demographics
Figure 71: US population, by age, 2008-18
Figure 72: US households, by presence of own children, 2002-12

Appendix – Other Useful Consumer Tables
Figure 73: Proportion of store brand beverages bought in a shopping trip, September 2013
Figure 74: Proportion of store brand beverages bought in a shopping trip, by age, September 2013
Figure 75: Proportion of store brand beverages bought in a shopping trip, by presence of children in household, September 2013
Figure 76: Incorrect Identification, by age, September 2013
Figure 77: Incorrect Identification, by race/Hispanic origin, September 2013
Figure 78: Consumer use of store brand by drink category, September 2013
Figure 79: Consumer use of store brand by drink category – Frequent usage*, by age, September 2013
Figure 80: Consumer use of store brand by drink category – Frequent usage, by presence of children in household, September 2013
Figure 81: Consumer use of store brand by drink category – Casual usage*, by household income, September 2013
Figure 82: Store brand purchasing behavior, by gender and age, September 2013
Figure 83: Store brand purchasing behavior, by household income, September 2013
Figure 84: Store brand purchasing behavior, by store brand usage levels, September 2013
Figure 85: Change in store brand purchasing behavior, by gender, September 2013
Figure 86: Change in store brand purchasing behavior, by age, September 2013
Figure 87: Consumer reasons for buying more store brand drinks in 2013, by gender, September 2013
Figure 88: Consumer reasons for buying more store brand drinks in 2013, by age, September 2013
Figure 89: Consumer attitudes toward store brand drinks, September 2013
Figure 90: Agreement with consumer attitudes toward store brand drinks, by household income, September 2013
Figure 91: Agreement with consumer attitudes toward store brand drinks, by race/Hispanic origin, September 2013
Figure 92: Agreement with consumer attitudes toward store brand drinks, by presence of children in household, September 2013

Appendix – Trade Associations

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