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TMCNet: Chattanooga: Store brands gain edge Chains say own labels save 30%

[December 10, 2008]

Chattanooga: Store brands gain edge Chains say own labels save 30%

(Chattanooga Times (Free Press, TN) Via Acquire Media NewsEdge) Dec. 10--They go by names like Millville, Hearty Harvest and Fit & Active instead of Quaker, Del Monte and Dannon, but shoppers at German-owned discount grocer Aldi say they can't tell the difference.

What they notice is the money they save by buying unfamiliar brands in place of the household names.

"They have good deals," said Tom Roberts, who shopped at Aldi in Fort Oglethorpe earlier this week. "One of the best tasting things is their chunky soup."

The soup is not Campbell's but a brand exclusive to Aldi called Chef's Cupboard. Shoppers who buy the less familiar version of chunky-style soup or choose the L'Oven Fresh bread, or any of Aldi's select brands, can save up to 50 percent on their grocery bill, according to store officials.

As families tighten their belts and continue to look for savings any place they can find it, more shoppers are turning to store brands. Chattanooga area stores Aldi and Save-A-Lot specialize in carrying cheaper alternatives to name brands.

Bi-Lo, Food Lion and Publix Supermarkets also carry their own store brands, which are sold at a discount from the name brand counterparts.

"What we are able to do is build in savings on advertising and other costs," said Martha Swaney, spokeswoman for Aldi, which has its U.S. headquarters in Batavia, Ill.

As consumers turn to store brands more, they are beginning to change the way they view those less expensive brands. More than 70 percent of consumers report they believe the store brand is a good alternative to the name brand, according to a survey by the Nielsen Co. About 62 percent of people say store brands are just as good as national brands, an increase from 2005.

"In today's economy, consumers are looking for ways to save money and for many of them, that means taking a new look at private label products," said Todd Hale, senior vice president at Nielsen in a release.

Store brand, or private label products, make up more than $81 million in the United States, up 10 percent over last year, according to Nielsen.

Food Lion launched a program called Switch and Save in the early summer. The program encourages shoppers to try the Food Lion brand over national brands to save money.

"You can save money by switching from national lines and buying private brand products," said Roger Blair, district manager for Food Lion in the area.

Food Lion stores are displaying two specially-created shopping carts filled with holiday food items comparing savings from the cart filled with Food Lion brands to the cart featuring equivalent national brands. The savings have been nearly $30 or more, Mr. Blair said.

East Ridge resident Judith Hovland said she first shopped at Aldi in Illinois in the 1950s, and believes the quality of the store brands is just as good as the higher-priced item -- though she may not recognize the other brand names.

"For the holiday season, I've got to shop places like this," she said.

To see more of the Chattanooga Times/Free Press, or to subscribe to the newspaper, go to http://www.timesfreepress.com.

Copyright (c) 2008, Chattanooga Times/Free Press, Tenn.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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