It was a few months ago that I commented on how food manufacturers retain their profit margins. Well, much of that is now being played out - higher prices for food, smaller package sizes, and of course, pain at the pump (despite the recent drop in oil prices).
This is driving consumers to buy lower priced grocery items. Yes, Private Label!
Almost 90% of consumers surveyed by Deloitte recently said they believe prices of food are increasing and 75% of those respondents said the size of some packaged products are getting smaller. As a result of this, most consumers are purchasing private label and store branded products. There is nothing wrong with that, folks, because many of those manufacturers follow the same food guidelines for processing healthy, safe products. The only difference may be in the final specification of a food. For example, in the case of green beans, the stem defect action level may be raised by a small level or amount.
Consumers also said that they are paying attention to nutrition information. The front of package information (covered also several months ago in this blog) is helping those same consumers to trend towards healthier food purchases. I firmly believe that those consumer product companies that use healthy ingredients and are willing to share nutritional information can and will strengthen their customer base.
This is driving consumers to buy lower priced grocery items. Yes, Private Label!
Almost 90% of consumers surveyed by Deloitte recently said they believe prices of food are increasing and 75% of those respondents said the size of some packaged products are getting smaller. As a result of this, most consumers are purchasing private label and store branded products. There is nothing wrong with that, folks, because many of those manufacturers follow the same food guidelines for processing healthy, safe products. The only difference may be in the final specification of a food. For example, in the case of green beans, the stem defect action level may be raised by a small level or amount.
Consumers also said that they are paying attention to nutrition information. The front of package information (covered also several months ago in this blog) is helping those same consumers to trend towards healthier food purchases. I firmly believe that those consumer product companies that use healthy ingredients and are willing to share nutritional information can and will strengthen their customer base.
