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Rise of Private Label Brands Impacts Traditional Packaged Food Companies


Aaron Back reviewed the trends negatively impacting packaged food products in an incisive article published in The Wall Street Journal on June 6th. He noted clearly-defined trends in consumer preference. These include a shift towards fresh produce away from packaged foods, digital advertising and E-commerce. These changes in food retailing have provided competitive benefits to start-ups and small companies in addition to the rise of deep discounters including Aldi and Lidl and the entry of into food distribution.

Back notes that in the U.K., private brands are twice as common as in the U.S. suggesting greater pressure on traditional companies.

During the past 12 months, the S&P has risen slightly over 10 percent. In contrast, ConAgra Foods, the best performing of the traditional companies, has declined 8 percent in share price followed by Kellogg (-12 percent), General Mills (-27 percent), Kraft-Heinz (-38 percent) and Campbell’s Soup (-40 percent).

In the egg market private label is accorded increasing shelf space to the disadvantage of national brands.

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