Posted on 03/30/2022 9:50:48 AM PDT by blam
U.S. consumers’ loyalty to brand names at supermarkets is quickly evolving as they try new grocery products amid snarled supply chains and high inflation.
Top food companies like Kraft Heinz Co. and Kellogg Co. are at dire risk of losing market share as supermarket operators grapple with shortages and fill empty store shelves with lower-cost brands, industry insiders told WSJ.
American households are money-conscious more than ever as inflation hits four-decade highs and takes a bite out of their monthly spending budgets. Some consumers have broken ranks of years and years of brand loyalty only to buy whatever is on the shelf, often generic brands.
“We see people make more choices on items because they are available,” said Tony Sarsam, chief executive officer of grocery chain SpartanNash Co.
Sarsam said SpartanNash had reduced shelf space for food products from major brands because of shortages, allowing it to expand room for local brands, which had more dependable supply.
Private-label consulting company Daymon Worldwide Inc. conducted a survey between May 2020 and August 2021 and found 70% of U.S. consumers bought new or tried different brands in a post-pandemic world. This means brand loyalty could be collapsing as consumers buy what is available and the cheapest.
Even though consumers generally buy familiar brands, industry analysts show high inflation and belt-tightening by households have forced many to find a better deal to make their dollars go further, even if that means buying generic brands.
84.51 LLC, a data analysis business of supermarket giant Kroger Co., also confirms consumers are switching to low-cost brands.
Kroger’s 84.51 said that 90% of consumers are willing to try another brand if their primary brand is unavailable.
WSJ spoke with one consumer in Fort Lauderdale who has been, like many other Americans, trying out new brands because the ones they wanted were out of stock or because prices were too high.
The days of supermarkets carrying only top-shelf brands could be over as shortages and inflation open new opportunities for food companies that can deliver low-cost products.
The shift in shopping behavior is a significant warning for major brands as supermarkets are desperately trying to fill shelf space amid shortages. People are more inclined to try new brands, and many seek low-cost ones.
“There hasn’t been a lot of customer resistance,” said Jonathan Weis, chief executive of Weis Markets Inc., referring to consumers trying generic brands. “They’d rather get orange juice than no orange juice,” he added.
Big problem with generics I’ve looked at. They tend to have more sugar and/or salt.
I found at least with save-a-lot you can go in on the day fresh(non-frozen) meat or fish expires and they have marked it down for quick sale maybe 30%. Buy it up and shove in freezer. A bit of a savings there if it was going to be frozen anyway.
Also as I’m sure all freepers know, the can sizes are shrinking. cvs has even taken to cutting quantities IN HALF on many supplements. Especially free otc items that are available for medicare advantage plans.
Easy Fiber was in catalog at 14 oz last year, same price is now 7 oz this year. They get away with scamming seniors.
We were at Walmart yesterday. Not only did we find chicken wings they were several dollars less for a large pack than at our local Publix or even Aldi.
And speaking of Aldi, we do use them AND Trader Joe’s for alternative product brands.
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I’ve been shopping at Aldis for numerous items. Their Friendly Farms nonfat greek yogurt is $3.19 per container compared to Fage NF greek yogurt which last time I bought it was around $5-6. It’s probably gone up in price it’s been so long since I’ve purchased it. It tastes superior to Fage too. I’m glad I made that switch.
I also buy their 12 grain wide pan whole wheat bread for $1.49. It’s delicious. Their plain white bread or whole wheat bread is about $.60 per loaf. I get their knock off ritz crackers for $1.99. They have delicious animal crackers for $1.69 a big box. Their classic hummus for $1.75 a container. Unsalted butter for $2.71. Their artisanal cheeses are very good.
I never really bought brand name goods unless I wanted to make a dish where every ingredient had to be the best. Like, I buy White Lily SR flour to make biscuits. And King Arthur bread flour to make bread. Or Challenge butter to make cookies or other recipes where I want to use the best ingredients to please my family or friends. There are times when I don’t want to skimp, but Aldis has a lot of good products that are well-priced. They also have paper goods at reasonable prices. Toilet paper and paper towels and paper plates.
I’ve noticed a lot of new faces at Aldis. Some of the folks look irritated having to shop there. I mean, it’s in a low-rent area, but the company of poor people, immigrant people and old folks has never bothered me. Well, I’m in the old folks category myself so why should it? ;)
Been doing this forever. I don’t do Great Value though. I loathe walmart.
My wife could be a chef, and she is also a depression/WWII raised child. So good buys without a sacrifice in quality and taste has been one of her buying keys.
She has found out in her eyes, her tastes and mine, that for the most part, Costco and Raley’s brand names are often excellent buys.
Safeway can be iffy re their store brands except their excellent cheeses.
Walmart, stay away from their store brands.
The canned corn below comes from China. But it does say “premium quality”. So I guess I shouldn’t be worried.
90% of Kirkland brand is good. The albacore tuna is just as good as Bumblebee for a lower price. We have been living off of Kirkland brand for years.
With canned vegetables, I can’t tell the difference. But, if I ever found a brand that was consistently “fresh, tender” whole kernel corn, I’d pay $5 a can. Most brands taste just like field corn nowadays; it’s a real treat to find a good one.
That’s not the only reason they’re ditching brand names.
Be careful with Great Value brand veggies. I found bits of stems still in the can.
Also I remember back around 1980 when grocery stores stated carrying the “Generic” canned items. I believe “ALWAYS SAVE” brands of canned foods are still around. the others have faded away. Even the generic grocery stores are no longer around.
I remember items packed like that back in the late 1970s.
I bought a can of mixed vegetables not long ago. Opened it and there was less than half a can of vegetables in it. The rest was water.
Just wait until veggie gardens start producing and people start canning or dehydrating their own food.
Had lots of Campbell's as a kid, but it's a bit bland for my taste now. So I season it like a Bloody Mary; Worcestershire, dash of Tabasco, a bit of horseradish and a little celery salt.
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