PRIVATE LABEL AND LOW-FAT PRODUCTS TAKE HITS

News & Solutions Consumer Preferences

ate label and low-fat products -- continue to boil, but appear to be losing just a little steam, according to the results of a SN consumer survey.

"We're beginning to see consumers a little less likely to buy private-label products overall," said Britt Beemer, founder and chairman of America's Research Group, which conducted the nationwide survey for the third consecutive year.

"This confirms a downward trend we've seen in the last 12 to 18 months in our research of other private-label consumer products," Beemer added.

As part of the survey, consumer were asked about their purchase intentions of private-label products. Canned goods took the hardest hit among the 10 store-brand areas specifically mentioned. Of those polled, 36.5% said they would be buying more canned goods. In a SN survey conducted last year, 50.7% reported they would be buying more private-label canned goods.

Other categories experiencing large declines were carbonated soft drinks (32.5% in 1995, 22.8% in 1996), chips and snacks (33.7% to 21.9%), cookies (32.5% to 22.4%) and food and trash bags (42.4% to 31.5%). The only exception to the downward spiral was frozen juice, up from 37.1% to 40.3%.

When asked if they were buying more or fewer store-brand products from supermarkets compared to a year ago, 38.4% reported they were buying more vs. a 43.5% finding in the 1995 survey.

Meanwhile, those reporting they were buying about the same amount rose from 32.7% to 38.7%.

On the other hand, 22.4% of the shoppers said they will be buying fewer store-brand goods in the near future. Last year's figure was 20.6%.

While the percentage of those expecting to buy more private-label products declined by 5%, the segment still remains strong, noted Chris Cooper, America's Research Group's vice president of research. "You still have nearly 40% of consumers who plan to buy more private-label products in the coming months," he said.

"If you draw the shape of the bell, we're still on the left half of the bell," he said, referring to a bell curve. "It's just that the rate of climb is slowing. If it had gone from 43.5% to 40.8%, that's half the amount of slowing as what we've got. It's all relative to the degree of angle. It's like when a rocket takes off; it's straight off and then it starts to lean over. Our rocket is leaning over."

While also remaining popular, low-fat and reduced-fat products appear to be losing a little of their luster.

The percentage of consumers reporting they are buying more low- or reduced-fat products fell from 54.1% in 1995 to 49.6% this year.

"Consumers are telling us that unless and until low-fat products taste better, they'll stick with the regular food," Beemer explained.

The number of shoppers choosing the same amount of low- or reduced-fat products as before jumped from 25.1% in 1995 to 31.7% in this year's survey.