Store Brand Drinks - US - April 2005

Contents

Introduction and Abbreviations

Introduction

Other relevant reports

Definition

Note on IRI data adjustment

Abbreviations & Terms

Abbreviations

Terms

Executive Summary

Top five beverage groups account for $9.5 billion in sales at FDM

Household income impacts likelihood of buying store brands

Store brands perform strongest in staple segments

Consumers purchase beverages from a wide range of channels

Store brands compete for the attention of the growing Hispanic population

Milk accounts for largest percentage of store brand sales

Store brand products account for one out of four FDM sales

Supermarkets are top channel for store brands

The store brands consumer

Store brands have room to grow

Some store-brand drinks categories more popular than others

Respondents have positive opinions of store brand products

Income will remain impetus for store brand purchases

Market Drivers

Income and spending on food

• Figure 1: Average expenditures of all CUs for food and beverages at home, by income before taxes, 2003

Brand loyalty vs. store loyalty

Innovation

Consumers purchase beverages from myriad channels

• Figure 2: Source of non-alcoholic beverages purchased in past week, May 2004

Hispanic shoppers are not more brand loyal than average

• Figure 3: U.S. population by race and Hispanic origin, 2000-2010
• Figure 4: U.S. population, by age and race/Hispanic origin, 2005

Market Size & Trends

• Figure 5: FDM sales of top 5 store brand beverage categories, at current and constant prices, 1999-2004
• Figure 6: Graph: Trends in FDM sales of store-brand drinks, at current and constant prices, 1999-2004
• Figure 7: Total FDM sales of beverages in selected categories, at current and constant prices, 1999-2004
• Figure 8: Graph: Trends in FDM sales of store-brand drinks vs. trends in overall FDM drink sales, 1999-2004

Store brand as a percentage of overall sales

• Figure 9: FDM sales of store-brand beverages as a percentage of overall FDM beverage sales, 1999-2004

Market Segmentation

Overview

• Figure 10: FDM sales of selected store-brand beverage products, by product type, 2002 and 2004
• Figure 11: Graph: FDM sales of selected store-brand drinks, by product type, 2004
• Figure 12: Total FDM sales of selected beverage products, segmented by type of beverage, 2002 and 2004
• Figure 13: Graph: Trends in sales of store-brand drinks, by product type, at current and constant prices, 1999-2004

Milk

• Figure 14: FDM sales of store-brand milk, at current and constant prices, 1999-2004
• Figure 15: Total FDM sales of milk, at current and constant prices, 1999-2004

Store brand sales as a percentage of overall sales

• Figure 16: FDM sales of store-brand milk as a percentage of overall milk sales, 1999-2004

Juice and juice drinks

• Figure 17: FDM sales of store-brand juice and juice drinks, at current and constant prices, 1999-2004
• Figure 18: Total FDM sales of juice and juice drinks, at current and constant prices, 1999-2004

Store brand sales as a percentage of overall sales

• Figure 19: FDM sales of store-brand juice and juice drinks as a percentage of overall juice and juice drink sales, 1999-2004

Carbonated beverages

• Figure 20: FDM sales of store-brand carbonated beverages, at current and constant prices, 1999-2004
• Figure 21: Total FDM sales of carbonated beverages, at current and constant prices, 1999-2004

Store brand sales as a percentage of overall sales

• Figure 22: FDM sales of store-brand carbonated beverages as a percentage of overall carbonated beverage sales, 1999-2004

Bottled water

• Figure 23: FDM sales of store-brand bottled water, at current and constant prices, 1999-2004
• Figure 24: Total FDM sales of bottled water, at current and constant prices, 1999-2004

Store brand sales as a percentage of overall sales

• Figure 25: FDM sales of store brand bottled water as a percentage of overall bottled water sales, 1999-2004

Tea/coffee

• Figure 26: FDM sales of store-brand tea/coffee, at current and constant prices, 1999-2004
• Figure 27: Total FDM sales of tea/coffee, at current and constant prices, 1999-2004

Store brand sales as a percentage of overall sales

• Figure 28: FDM sales of store-brand tea/coffee as a percentage of overall FDM sales, 1999-2004

Supply Structure

Private-label beverage manufacturers

Cott Corporation

Inter-American Foods, Inc.

OmniBrands, manufacturing division of Safeway, Inc.

Dean Foods Company

Vitality Foodservice Inc.

Clement Pappas & Co., Inc.

Retail Distribution

Introduction

• Figure 29: FDM sales of store brand beverages, by channel, 2002 and 2004

Supermarkets

• Figure 30: Supermarket sales of top 5 store-brand beverage groups, at current and constant prices, 1999-2004
• Figure 31: Supermarket sales of top 5 beverage groups, at current and constant prices, 1999-2004

Supermarket store brand activity

Kroger

Safeway

Albertsons

H-E-B

Spartan Stores

Giant Eagle

Publix

Delhaize America

The Consumer

Introduction

Responsibility for grocery shopping

• Figure 32: Responsibility for grocery shopping, January 2005
• Figure 33: Responsibility for grocery shopping, by gender, January 2005
• Figure 34: Responsibility for grocery shopping, by age, January 2005

Weekly grocery spending

• Figure 35: Amount spent on weekly grocery shopping trip, January 2005
• Figure 36: Amount spent on weekly grocery shopping trip, by presence of children, January 2005
• Figure 37: Graph: Amount spent on weekly grocery shopping trip, by presence of children, January 2005
• Figure 38: Amount spent on weekly grocery shopping trip, by age, January 2005
• Figure 39: Amount spent on weekly grocery shopping trip, by household income, January 2005

Percentage of shopping basket made up of store-brand items

• Figure 40: Percentage of shopping basket comprising store-brand food and drink items, January 2005
• Figure 41: Percentage of shopping basket comprising store-brand food and drink items, by age, January 2005
• Figure 42: Percentage of shopping basket comprising store-brand food and drink items, by household income, January 2005

Preference for store brand vs. national brand

• Figure 43: Preference for store brand vs. national brand, January 2005

Dairy products

• Figure 44: Purchase of store-brand and/or nationally branded dairy products, by age, January 2005
• Figure 45: Purchase of store-brand and/or nationally branded dairy products, by household income, January 2005

Juice

• Figure 46: Purchase of store-brand and/or nationally branded juice products, by gender, January 2005
• Figure 47: Purchase of store-brand and/or nationally branded juice products, by age, January 2005
• Figure 48: Purchase of store-brand and/or nationally branded juice products, by household income, January 2005

Bottled water

• Figure 49: Purchase of store-brand and/or nationally branded bottled water, by age, January 2005
• Figure 50: Purchase of store-brand and/or nationally branded bottled water, by household income, January 2005

Soft drinks

• Figure 51: Purchase of store-brand and/or nationally branded soft drinks, soda, or pop, by age, January 2005
• Figure 52: Purchase of store-brand and/or nationally branded soft drinks, soda, or pop, by household income, January 2005

Attitudes and opinions concerning store brand vs. national brand products

• Figure 53: Attitudes and opinions regarding store-brand and national brand products, agree summary, January 2005
• Figure 54: Attitudes and opinions regarding store-brand and national brand products, agree summary, by age, January 2005
• Figure 55: Attitudes and opinions regarding store-brand and national brand products, agree summary, by household income, January 2005

Purchase venues for store-brand products

• Figure 56: Purchase venues for store-brand food and drink items, January 2005
• Figure 57: Purchase venues for store-brand food and drink items, by age, January 2005
• Figure 58: Purchase venues for store-brand food and drink items, by household income, January 2005

Summary

Store brand shopping behavior

Respondent opinions regarding store brands vs. national brands

Future & Forecast

Future Trends

Income and spending on food and drinks

Innovation

Store brands for minorities

Market forecast

Overview

• Figure 59: Forecast of FDM sales of the top-five store-brand beverage categories, at current and constant prices, 2004-2009
• Figure 60: Graph: Forecast of FDM sales of store-brand drinks, at current and constant prices, 2004-2009

Milk

• Figure 61: Forecast of FDM sales of store-brand milk, at current and constant prices, 2004-2009

Juice and juice drinks

• Figure 62: Forecast of FDM sales of store-brand juice and juice drinks, at current and constant prices, 2004-2009

Carbonated beverages

• Figure 63: Forecast of FDM sales of store-brand carbonated beverages, at current and constant prices, 2004-2009

Bottled water

• Figure 64: Forecast of FDM sales of store-brand bottled water, at current and constant prices, 2004-2009

Tea and coffee

• Figure 65: Forecast of FDM sales of store-brand tea/coffee, at current and constant prices, 2004-2009

Forecast factors

Price competition

Economic factors

Product innovation and improvement

Appendix: Trade Associations

Appendix: New Product Briefs

H-E-B: H-E-B Mootopia 2% Reduced Fat Milk

Foodhold USA: Giant Light Cranberry Raspberry Juice Drink

Safeway: Safeway Select Tea Sampler

Albertsons: Essensia Organic Cranberry-Berry Juice Drink

Aldi: Beaumont Gold Chai Tea

Wegmans: Wegmans Sparkling Mineral Water

H-E-B: Central Market Organics Italian Soda

Giant: Natures Promise Soymilk

Albertsons: Jewel Clear Excellence Sparkling Flavored Beverage

Appendix: Research Methodology

Consumer Research

Sampling & Weighting

Technometrica TechnoExpresssm

ICR Surveys EXCEL

Simmons National Consumer Surveys

Greenfield Online

Presentation & Definition

Further Analysis

Trade Research

Informal trade research

Formal trade research

Desk & Internet Research

Sources

Definitions

Forecasts

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