I have a confession to make. I used to be somewhat of a food snob. Not the kind of person who prefers Roquefort, gruyere and manchego over cheddar. Or one who only buys dried Italian pasta rather than Skinner macaroni. But one who would never–and I mean ever–buy store brand items. No, Dr. Perky for me, it was name Dr. Pepper all the way.

The Food Marketing Institute, an industry trade group, found this year that the number of shoppers who say they are buying more store-brand items has been steadily rising, now up to some 60 percent. Candace Corlett, president of the consulting firm WSL Strategic Retail, says her group has found that even upper-income shoppers are more willing to buy store brands, which have traditionally been seen as appealing most to people on limited budgets.
That shift comes as the chains are offering more store-brand products of better quality. Stores have been pushing their own brands in areas such as dairy products, meats and breads where prices have risen especially fast, and are also tapping into increased demand for organics and natural foods.
“Store brands have come a long way,” said Tod Marks, a senior editor at Consumer Reports, which has tested store brands against national brands for quality and customer response. “Over the years, retailers realized that store brands were not just something to be floated out during hard times … ‘This is a signature product of ours. We want to be known for this.’ ”
Stores generally reap better profit margins by selling their own brands — also called corporate brands, private labels or generics — and also use them to build customer loyalty.
“All of us are creatures of habit, and when things are going well, you just buy what you bought last week,” Kroger’s vice chairman, Rodney McMullen, said in an interview. “Customers are much more willing to try a corporate brand when the economy gets tough, and when we can get the customer to try it, they like it. It just makes it so much easier for us to get the customer to try it.”
I understand where the guy is coming from….recently I brought HyVee 1/2 & 1/2 to put in my coffee. Not only was it as good as the name brand I’d been using, it was a LOT cheaper. The same for my store brand toilet paper…LOTS cheaper and just as soft.
P&G, which has repeatedly raised prices to offset higher costs for energy and raw materials, has expressed confidence that product innovations and people’s loyalty to its generations-old brands such as Pampers, Tide detergent and Gillette shavers will keep sales growing.

“It’s all about value,” Clayton Daley Jr., P&G’s chief financial officer, recently told analysts. “It’s not just price, it’s all about product performance. … It’s about the trust that consumers have in your brands.”
I have to agree with Clayton. I love TIDE and I can’t imagine switching….unless, of course, the price is right.
How ’bout you? Are you thinking of joining me on the no-frills bandwagon?
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