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Consumer Attitudes towards Private Label Food and Drink - Canada - February 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Impact of COVID-19 on private label
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
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 
COVID-19 widens the divide between the ‘haves’ and ‘have nots’
What brands ‘stand for’ matters more than ever
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
Figure 3: Importance of eating healthy for one’s physical and emotional wellbeing, (% any agree), September 2020
MARKET OPPORTUNITIES 
Private label can help make home more entertaining in a dark time
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
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
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  
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
Private label’s popularity is driven by the perception that it has improved over time 
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
Figure 11: “Store brands are just a rip off of national brands” (% agree), by age, December 2020
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
Figure 14: Attitudes toward the impact of a store brand’s reputation across food and non-food categories (% agree), December 2020
Figure 15: Compliments Buffalo Cauliflower Bites (Canada), January 2021
Figure 16: PC President’s Choice Cajun Seafood Bake (Canada), January 2020
Figure 17: PC President’s Choice Beefless Strips (Canada), December 2020
Store brands help drive traffic
Figure 18: Attitudes around store brands driving traffic and openness to store carrying mostly store brands (% agree), December 2020
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
Figure 20: Attitudes on price, quality and tiering, December 2020
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
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
COVID-19 has bolstered private label purchasing
Figure 24: Change in store brand purchasing behaviour since the start of the COVID-19 pandemic, December 2020
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
Figure 26: Reasons for buying more or the same amount of store brand products since the start of COVID-19, December 2020
Figure 27: Reasons for buying more or the same amount of store brand products since the start of COVID-19, December 2020
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
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
Figure 30: Welcome to the Haulerverse, November 12, 2020
Other reasons also impact store brand purchases
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 
Nearly all Canadians purchase private label products
Figure 32: Percent of grocery shoppers who purchase store brand products by category, December 2020
Figure 33: Percent of grocery shoppers who purchase store brand products by category (select), men vs women, December 2020
Figure 34: Percent of grocery shoppers who purchase store brand products by category (select), 18-44s vs over-45s, December 2020
Figure 35: Percent of grocery shoppers who purchase store brand products by category (select), by parental status, December 2020
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
Figure 37: Percent of grocery shoppers who purchase store brands vs national brands, December 2020
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
Figure 39: Percent of grocery shoppers who are more or equally likely to buy store brands, by category, December 2020
Figure 40: Percentage of grocery shoppers who are equally likely to buy store brands and national brands by category, men vs women, December 2020
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
Value is store brands’ biggest selling feature
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
Figure 44: Reasons for purchasing store brands over national brands, by age, December 2020
Figure 45: Reasons for purchasing store brands over national brands (any rank), by household income, December 2020
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
Data sources
Consumer survey data
Consumer qualitative research
Mintel Trend Drivers
Abbreviations and terms
Abbreviations

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