Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on private label
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- Figure 1: Short-, medium- and longer-term impact of COVID-19 on private label, February 2021
- Opportunities
- Younger shoppers’ perception of store brands differs from older shoppers
- Store brands drive traffic
- Having a good experience with one store brand product can resonate across categories
- Challenges
- National brands’ best defence can be found in their brand equity
- Store brands have evolved beyond being ‘rip-offs’ to name brands
The Market – Key Takeaways
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- COVID-19 widens the divide between the ‘haves’ and ‘have nots’
- Store brands can help make home more entertaining in a dark time
- Private label allows retailers greater control of their brand narratives
Market Factors
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- COVID-19 widens the divide between the ‘haves’ and ‘have nots’
- What brands ‘stand for’ matters more than ever
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- Figure 2: Percent of Canadians who agree it’s ‘very important’ that a company acts morally/ethically, by age, December 2019
- Mental and emotional wellbeing takes on heightened importance during the pandemic
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- Figure 3: Importance of eating healthy for one’s physical and emotional wellbeing, (% any agree), September 2020
Market Opportunities
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- Private label can help make home more entertaining in a dark time
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- Figure 4: PC President’s Choice Barbecue Chicken Steamed Buns (Canada), January 2021
- Figure 5: Irresistibles Falafel Bowl with Spiced Rice & Quinoa (Canada), January 2021
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- Figure 6: Kirkland Signature Premium Strawberry Margarita (Canada), January 2021
- Figure 7: Panache Sweet Chili & Sour Cream Flavour kettle-Cooked Potato Chips (Canada), December 2020
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- Figure 8: Great Value Poutine-Style & Bacon Breakfast Bowl (Canada), December 2020
- Figure 9: PC President’s Choice East Cook! Cod in Miso & Yuzu Butter Sauce (Canada), January 2021
- Private label allows retailers greater control of their brand narratives
- A more sophisticated store brand shopper heightens the need for transparency
- Investment in brand equity and innovation is national brands’ best defence against store brands
The Consumer – Key Takeaways
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- Private label’s popularity is driven by the perception that it has improved over time
- COVID-19 has bolstered private label purchasing
- Nearly all Canadians purchase private label products
- Value is store brands’ biggest selling feature
Attitudes toward Private Label
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- Private label’s popularity is driven by the perception that it has improved over time
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- Figure 10: “The quality and variety of store brands have improved over time” and “Store brands are just a rip-off of national brands” (% agree), December 2020
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- Figure 11: “Store brands are just a rip off of national brands” (% agree), by age, December 2020
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- Figure 12: Great Value Gluten Free Fusilli Pasta (Canada), July 2019
- Figure 13: Great Value Organic Side Dishes Rotini Pasta (Canada), December 2019
- Private label is its own best ally (or worst enemy) in promoting products across categories
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- Figure 14: Attitudes toward the impact of a store brand’s reputation across food and non-food categories (% agree), December 2020
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- Figure 15: Compliments Buffalo Cauliflower Bites (Canada), January 2021
- Figure 16: PC President’s Choice Cajun Seafood Bake (Canada), January 2020
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- Figure 17: PC President’s Choice Beefless Strips (Canada), December 2020
- Store brands help drive traffic
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- Figure 18: Attitudes around store brands driving traffic and openness to store carrying mostly store brands (% agree), December 2020
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- Figure 19: “I'm willing to shop in grocery stores where the product assortment is mostly or entirely made up of store brands” (% agree), by age, December 2020
- Private label helps shoppers save where they want to
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- Figure 20: Attitudes on price, quality and tiering, December 2020
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- Figure 21: No Name Strawberry Jam with Pectin (Canada), January 2021, PC Blue Menu Twice the Fruit (Canada), November 2017, PC Black Label British Columbia Strawberry Fruit Spread (Canada), June 2015
- Figure 22: “I'm willing to compromise on quality when it comes to store brand products if I can save money” (% agree), by age, December 2020
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- Figure 23: “I'm willing to compromise on quality when it comes to store brand products if I can save money” (% agree), by age and household income, December 2020
COVID-19’s Impact on Private Label
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- COVID-19 has bolstered private label purchasing
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- Figure 24: Change in store brand purchasing behaviour since the start of the COVID-19 pandemic, December 2020
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- Figure 25: Purchasing more store brand products since the start of the COVID-19 pandemic, by age, December 2020
- Habit and price represent store brands’ main appeal during the pandemic
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- Figure 26: Reasons for buying more or the same amount of store brand products since the start of COVID-19, December 2020
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- Figure 27: Reasons for buying more or the same amount of store brand products since the start of COVID-19, December 2020
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- Figure 28: Select reasons for buying more or the same amount of store brand products since the start of COVID-19, 18-34s vs over-35s, December 2020
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- Figure 29: Reasons related to habit and grocery spend as reasons for buying more versus the same amount of store brand products since the start of COVID-19, December 2020
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- Figure 30: Welcome to the Haulerverse, November 12, 2020
- Other reasons also impact store brand purchases
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- Figure 31: Reasons related to safety, trial and uniqueness as reasons for buying more versus the same amount of store brand products since the start of COVID-19, December 2020
- Store brands are a vehicle for culinary exploration
Private Label Usage and Penetration
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- Nearly all Canadians purchase private label products
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- Figure 32: Percent of grocery shoppers who purchase store brand products by category, December 2020
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- Figure 33: Percent of grocery shoppers who purchase store brand products by category (select), men vs women, December 2020
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- Figure 34: Percent of grocery shoppers who purchase store brand products by category (select), 18-44s vs over-45s, December 2020
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- Figure 35: Percent of grocery shoppers who purchase store brand products by category (select), by parental status, December 2020
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- Figure 36: Percent of grocery shoppers who purchase store brand products by category (Select), Quebec vs overall, December 2020
- Name brands remain the primary go-to for store brand shoppers
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- Figure 37: Percent of grocery shoppers who purchase store brands vs national brands, December 2020
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- Figure 38: Percent of grocery shoppers who purchase store brands, by category and age, December 2020
- Ample room for store brands to grow by winning over ‘flexible’ shoppers
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- Figure 39: Percent of grocery shoppers who are more or equally likely to buy store brands, by category, December 2020
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- Figure 40: Percentage of grocery shoppers who are equally likely to buy store brands and national brands by category, men vs women, December 2020
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- Figure 41: Percent of grocery shoppers who are more likely to buy national brands by category, men vs women, December 2020
- Figure 42: Percent of grocery shoppers who are more likely to buy store brands by category, men vs women, December 2020
Reasons for Choosing Store Brands over National Brands
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- Value is store brands’ biggest selling feature
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- Figure 43: Reasons for purchasing store brands over national brands, ranked first to third, December 2020
- Younger shoppers show greater interest in innovative store brand offerings
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- Figure 44: Reasons for purchasing store brands over national brands, by age, December 2020
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- Figure 45: Reasons for purchasing store brands over national brands (any rank), by household income, December 2020
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- Figure 46: Reasons for purchasing store brands over national brands (any rank), South Asians & Chinese Canadians vs overall, December 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Mintel Trend Drivers
- Abbreviations and terms
- Abbreviations
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