U.S. makers of name-brand foods are making some inroads on cheaper store brands, according to research issued late Sunday from Citigroup.
For the four-week period ended Sept. 5, branded food manufacturers gained 20 basis points of dollar market share from private-label brands over the same period last year -- marking the first time since late 2006 they have gained share, Citigroup said.
The share gains stemmed from food makers sticking to price increases in their branded food, despite lower ingredient and energy costs, as well as more stable volume shipments, the analysts said. Private-label prices have been falling.
"Sales and volume trends for branded food manufacturers have been strengthening, while private-label sales and volume trends have lost steam the past several months,"analyst David Driscoll said in the research report.
