Ad Age’s Emily York reports that private label gains are not attributable to the recession and, in fact, private label was on the rise before the economy’s sonic boom.
However, whether the rise started before or after the crisis was declared, the fact remains that private label is infringing on the positioning of package food companies. “When we come out of this economic slide, this is probably the single biggest thing that’s going to be facing branded-food manufacturers,” said Harry Balzer, chief industry analyst at research firm NPD. Fortunately, according to the article, CPG’s are beginning to realize this as challenge to their future sustainability. Read more here.
