Losing the store brand stigma.
When I was a young lad, I would cringe when my mother unpacked the groceries. We didn’t have much money and that meant scrimping and saving any way we could. So, out went the name brands and in came the store brands, or ‘generics’ as they are sometimes known. I can still remember the plain white cans with black army-surplus type covering the label. Baked Beans, carrots, tomato soup, dog food, you name it, we got it store brand. And I swear, as a child I knew they tasted awful. They really did.
Then I grew up. I went to college, struggled on little-to-no money and made do with store brands daily. They weren’t so bad. And now, I find them preferable to the big names like Heinz, General Mills, Proctor & Gamble and Campbells. Why? Well, quite simply, because they taste almost exactly the same (if not identical) and on average cost around 25-30% less than the big name brands. Sometimes, it’s almost 50%. Quite a margin for that can of soup or box of dish soap.
Now, the first reaction I get from people when I say this is usually this one…”there’s a reason they’re cheaper…they’re made from inferior ingredients or products.” Hmmm, really? I checked it out to confirm my suspicions, and I can sum up the major difference between store brands and name brands in one word – advertising.
When was the last time you saw a big budget ad campaign for Archer Farms, or Great Value? It never happens. It’s not that stores like Target and Wal-Mart are tight with their ad budgets. It’s simply because they don’t need to advertise store brands. The products sell themselves. If you need tomato soup, Campbells & Heinz have already spent the big bucks telling you all about the rich, creamy taste of their soups, and how wonderful they are on a cold winter’s day. So, what difference does it make if you get that same experience from a store brand?
Even more surprising is how well store brands fare in blind tests and Consumer Reports. Whether its zip-lock bags, foil or cooked ham, consumers are finding out that when it comes down to it, there’s very little difference except to your wallet. Even the labels and packaging of store brand products have evolved into something not just ‘ok’ but sometimes downright elegant (Target in particular, with Archer Farms & Market Pantry, do a great job).
Another question I often get asked when I champion store brands is “well who makes them then?” Some are made by companies that specialize in generic products for stores. But an awful lot are made by National Brand companies. That’s right, the same folks responsible for that aluminum foil you trust, or the canned tuna you put in your salads, is making the same product for the grocery store. They slap on a different label and you pay a lot less for what is basically the same product. Here are some companies you know well that also produce store brands:-
KNOWN FOR: Reynolds Wrap aluminum foil
STORE BRAND PRODUCTS: Foil, wrap, plastic bags, disposable storage containers
Bausch & Lomb
KNOWN FOR: Contact lenses & eye medicines
STORE BRAND PRODUCTS: Eye-care products, nonprescription nasal remedies
KNOWN FOR: Frozen veggies
STORE BRAND PRODUCTS: Frozen veg, canned soup, chili, pie filling
Chicken of the Sea
KNOWN FOR: Canned tuna (unless you’re Jessica Simpson)
STORE BRAND PRODUCTS: Canned tuna, salmon, specialty seafood, fruit and vegetables, pet food
KNOWN FOR: Canned fruit and veg
STORE BRAND PRODUCTS: Canned soup, broth, gravy
KNOWN FOR: Spices, seasonings, extracts
STORE BRAND PRODUCTS: Spices, seasonings, extracts, salad dressings, dips
I could keep going, but you get the picture. You may wonder why so many major labels are producing store brands. If you think about it, they’re cannibalizing on their own sales. Trouble is, this is a case of play ball or lose out. Manufacturers everywhere know that store brands are growing and growing in popularity. If they don’t help supply them, they’re still going to lose sales to the generic products. Better to be involved for a lower profit margin than no profit at all.
But what does this all mean to you? Well, it’s only good news. Store brands taste and perform better than ever, often outperforming well-established national brands. Their impact is forcing major labels to reduce their pricing to remain competitive. And at the end of the day, you’re filling your house with groceries at a much lower cost, for no noticeable difference in quality. If you can get over the ‘shame’ of buying store brand, you’ll find yourself laughing all the way to the bank.