Private label food manufacturers focus on quality, convenience, health

So far in 2009, Mintel GNPD has seen nearly 1,800 new US private label foods appear on retail store shelves: 27% of all food products introduced this year. In 2005, private label foods comprised only 13% of new food product launches.

“Not only have private label introductions increased, but product innovation is reaching unprecedented highs,” states Krista Faron, senior analyst at Mintel. “Retailers no longer only launch ‘me-too’ products to compete against major national brands. Instead, private label lines are hotbeds of creativity, driving markets and establishing themselves as trend leaders.”

As over half of Americans try to spend less at restaurants, Mintel sees private label retailers creating premium in-home meals that boast restaurant quality and fresh ingredients.

Convenience remains a driver for private label prepared foods, but Mintel GNPD sees health and nutrition increasingly influencing product development. Lucerne Foods gives shoppers convenience, nutrition and private label pricing with its Eating Right brand. Products span the store, including kids’ Whole Wheat Mini Ravioli with fiber and protein, plant sterol-fortified Apple Cinnamon Granola, and Light Ice Cream Cups containing probiotics.

“Private label manufacturers realize ‘value’ means more than ‘low price’ to consumers, so they’re wisely creating new products that deliver on some of today’s most exciting food trends,” comments Krista Faron.