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BevNet
Private Label Functional Beverages Taking Root in Grocery
Although dollar and unit share growth has stalled for most private label food and beverages, a report from market research firm IRI indicates that private label functional and better-for-you drinks are making modest gains, with potential for even stronger growth in the future. According to IRI’s November 2016 report titled “Private Label: The Journey to Growth Along Roads Less Traveled,” private label brands are showing signs of a slight decline over the last 24 months after outpacing industry average dollar sale growth for several years. From 2012 through 2016, private label’s dollar share in multi-outlet plus convenience retailers peaked at 14.8 percent in 2015, falling to 14.5 percent in last year. Unit share has been decreasing at a rate of about 0.1 percent per year since 2012, dropping from 17.4 percent to 17.1 in 2016.
