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PLMA: CONSUMERS SAVED WITH STORE BRANDS

NEW YORK -- The 1998 annual yearbook published by Private Label Manufacturers Association here reported that U.S. consumers saved $15.8 billion by choosing store brands over national brands in 1997. Private labels, or store brands, reached record sales and penetration in U.S. supermarkets, drug chains and mass merchandisers in 1997, the report said. Cost savings is based on data compiled by Information

NEW YORK -- The 1998 annual yearbook published by Private Label Manufacturers Association here reported that U.S. consumers saved $15.8 billion by choosing store brands over national brands in 1997. Private labels, or store brands, reached record sales and penetration in U.S. supermarkets, drug chains and mass merchandisers in 1997, the report said. Cost savings is based on data compiled by Information Resources, Inc., Chicago.

"One sees that the store-brand industry is responsible for an extraordinary amount of money being pumped back into the economy to purchase other goods and services," said Brian Sharoff, president of PLMA.

"The multiplier effect can sometimes be 2 or 3 times as great," he added.

Savings were achieved by consumers throughout every major category in all three channels. In supermarkets, shoppers who bought store-brand carbonated beverages saved $1.1 billion, estimated by a calculation that compared the average cost per store brand unit and average cost per unit for national brands.

Other leading categories where consumer savings were similar included frozen vegetables (a $289 million estimated savings), ready-to-eat cereal ($226 million), diapers ($181 million), bottled water ($131 million) and vitamins ($109 million).

Store brands reached a record 20.6% unit market share in supermarkets, growing at a rate that was twice that of national brands, and accounting for more than one of every four new dollars coming into the channel, the PLMA said.

Store brands dollar volume gained $1.1 billion for a total of $35.3 billion (an increase of 3.1%) and unit volume increased by 0.7%.

National brand sales were up $2.9 billion to 1.6%, while national brand units declined by 2%.

Top categories for store-brand dollar gains included entrees and side dishes and frozen cookies. Sales of store brand entrees and side dishes in particular increased $80 million to $274.5 million.

At the same time, stunning gains in private label penetration were recorded for frozen cookie dough, which grew from 5.2% of units sold to 66% and from 5.15% to 63.8% dollar market share, according to the PLMA.