2024年3月CPG自有品牌报告

CircanaInspire

CPGPrivate

BrandsUpdate

March1,2024

ExecutiveSummary

Theanticipatedgainsofprivatebrands(alsoreferredtoasstorebrandsorprivatelabel)amidhighinflationhavebeenrealized.ThisreportprovidesanupdateontheU.S.$217+billionstorebrandlandscapeandidentifiesretaileropportunitiesto

increasedemandfortheirownbrandandprivatebrandofferings.

CurrentDemandforPrivateBrands

•Totaldollarsalesofprivatebrandsincreased6%in2023,andunitsincreased0.9%.Privatelabelgainedshare

fromnamebrands,increasingfrom24.7%oftotalunitsalesin2022to25.5%in2023.SaleswerehigherforPLF&B,6.7%comparedtononedible5.1%Still,privatebrandsgainedsharefromnamebrands,increasingto24.7%oftotal

unitsales,upfrom25.5%in2022.

•Privatebrandsgrewunitandunitshareacrossgeneralfood,shelfstablebeveragesandrefrigeratedfoods,aswellas

beautyandhomedepartments.WithinF&B,privatebrandsoutperformednamebrandsbasedoncorepantrydollarandunits.

•HouseholdswithchildrenandMillennialandGenXhouseholdswithnochildren,eachrepresentmorethanathirdofprivatebrand

F&Bunitpurchases.Withinthosesamecohorts,middleaffluentshoppersarethemostengagedwithprivatebrandsyetotherafluenciesaregrowing.

•Retailersaretreatingtheirbrandslike“brands”,innovatingwithmorecleanlabels,premiumofferings,andmarketingsupporting.

PrivateBrandOpportunities

•Eveninthesaltysnackaisle,wherenamebrandsdominate,consumersarerecognizingthevalueofprivatebrands.Acommitmenttoincreasinghouseholdpenetrationonecategoryatatime,canpayoffforretailersinthelongrun.

•Retailerscanleaninfurtheronthewaysconsumersarecookingtoday.Demonstratehowprivatebrandsworkwithsmallappliances,likeairfryersandinstantpots,foreasy-to-preparemeals.

•Promotioniskey.Giventhatyoungershoppersaremorelikelytostarttheirshoppingjourneyonline,leveragedigitalmarketingtolockinthesevaluablecohorts.

•Leveragetrustinproductstopromotenewofferingsthatreflectthemissionofthestorebanner.

•Raceisonforstorebrandstoexpandshoppertrialtobuildtrustwithstorebrandsanddeepenengagement.

Circana,LLC|Forpublicuse2

Thecumulativeeffectofhigher

pricesfrustratesconsumers

25.0%

Food0.&0beveragepricerealizationYoYandindexedtoQ12019,MULO+withC-store

127.8

128.3

130.0

20.0%

AvgPrice%ChgYAPriceIndexvs2019WageIndexvs2019

119.3

118.1

120.0

15.0%

112.1

12.4%

11.6%

110.0

10.8%

10.0%

9.5%

7.9%

103.7

5.3%

3.7%

2.3%

1.2%

10.0%

100.0

100.0

7.3%

/

100.1

4.4%

5.0%

3.9%

4.2%

3.9%3.9%

90.0

1.9%1.7%1.6%1.7%

80.0

0.0%

Q119

Q219

Q319

Q419

Q120

Q220

Q320

Q420

Q121

Q221

Q321

Q421

Q122

Q222

Q322

Q422

Q123

Q223

Q323

Q423

Source:CircanaPOSMULO+andC-storedataendingDecember31,2023.Note:Pricepervolumechangescalculatedatacategorylevel(forcategoriesthathasequivalizedvolumes)andthendollarweightedtogettotalF&Bandaisles

3

Circana,LLC|Forpublicuse

Macroeconomicsarenomatch

forconsumersentiment

76.9inFebruary2024,up10ptsfromYA

TheGOODNews

Easinginflation

Solideconomicgrowth

SpendingremainshealthyEasinggasprices

Socialsecurity-3.2%increaseLowratesofunemployment

TheBADNews

Consumersarepaying~30%more

forgroceriescomparedto2019Highinterestrates

Savingsdepletion

StudentloanrepaymentHighhousingcosts

Creditcarddebt$1trillion+

Source:UniversityofMichiganConsumerSentimentIndex

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Circana,LLC|Forpublicuse

PrivateBrandsarea

retailpowerhouse

$217,000,000,000

Privatebrands’AnnualSales,U.S.TotalStore

Circana,LLC|Forpublicuse5

Totalstoreprivatebrandsalesare

upinbothdollarsandunitsvs.YAG

Units(Billions)

Privatebrandsareseeingunitgrowthlagdollargrowth,asimilarpatterntonamebrandproducts.

Dollars(Billions)

+6.3%

$216.8

$204.0

$179.2$180.5

$157.2

20192020202120222023

57.1

53.8

+0.9%53.5

53.1

52.7

20192020202120222023

PANDEMICSTOCKUP

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

Circana,LLC|Forpublicuse6

Privatebrandscontinue

togrowunitshareeveninachallenginggrowthenvironment

UnitShare

25.5%

74.5%

75.3%

24.7%

2022

Namebrands

2023Privatebrands

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

7

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Forpublicuse8

Circana,LLC

Acrossthestore,privatebrandfood

andbeveragesalescontinuetogrow

Shiftingtoprivatebrandsisamongthestrategiesconsumersemployduringuncertaintimes.

AllOutletSales($Billions)

+6.7%

$152.0

$142.4

$123.0

$106.7

$123.0

20192020202120222023

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Circana,LLC|Forpublicuse

IncreasingF&Bprivatebrandunitandunitshare

demonstratesstrongconsumerdemand

PLF&BUnits(Billions)

45.4

+1.2%43.2

42.7

42.6

41.6

20192020202120222023

F&BPLUnitShare

+1.0pt

26.0%

25.3%25.1%

25.0%

24.4%

20192020202120222023

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

9

Circana,LLC|Forpublicuse

Privatebrandscontinuetogaintraction

acrossfoodandbeveragedepartments

GeneralFood

+1.2%

PLUnits

+0.9pt

PLUnitShare

ShelfStableBeverages

+1.2%

PLUnits

+0.7pt

PLUnitShare

Refrigerated

+1.8%

PLUnits

+1.1pt

PLUnitShare

Frozen

-0.5%

PLUnits

+.9pt

PLUnitShare

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Morethanathirdofthecorepantry

spendisonprivatebrands

Thisaccountsaccountingfor40%ofcorepantryunits

CorePantryGrowth

DOLLARS

UNITS

+3.9%O

+1.7%

PRIVATEBRANDS

NAMEBRANDS+3.2%-3.1%

Coreprivatebrandpantryaccountsfor52%dollarshareand45%unitshareoftotalprivatebrandfood&beveragesales.

BreakfastMeatsMeatRFG

Poultry-FRZ/RFG

SeafoodFRZShortening/Oil

Butter/ButterBlends

Cookies

SaltySnacks

SnackNuts/SeedsPastry/DoughnutsFreshBread&RollsBakingNeeds

Coffee

BottledWaterDairyMilk

NaturalCheeseEggs

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Consumersareincreasinglyleaningintoprivate

brandvalueforeverydaycorepantryitems

CorePantryCategories*DollarShare

36.2%

63.8%

35.7%

64.3%

35.2%

64.8%

36.5%

63.5%

36.6%

63.4%

20192020202120222023

NameBrandsPrivateBrands

CorePantryCategories*UnitShare

40.1%

59.9%

39.4%

60.6%

38.6%

61.4%

39.3%

60.7%

40.5%

59.5%

20192020202120222023

NameBrandsPrivateBrands

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

CorePantry:topPrivateBrandCategories-BreakfastMeats,MeatRFG,Poultry-FRZ/RFG,,SeafoodFRZ,Shortening/Oil,Butter/ButterBlends,Cookies,SaltySnacks,SnackNuts/Sees,Pastry/Donuts,FreshBread&Rolls,BakingNeeds,Coffee,Bottled,Water,DairyMilk,NaturalCheese,Eggs

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Agrowingnumberofconsumersarefinding

valueinprivatebrandsacrossthesaltysnackaisle

HHPenetration-PointChange2023vs.YA

NamebrandsPrivatebrands

2.22.22.0

Tortilla/

TostadaChipsPretzelsPotatoChips

-0.6

-1.1

-1.2

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Circana,LLC|Proprietaryandconfidential14

DairyconsumersembracePL

Privatebrandsoutpacenamebrandsin11outof14dairycategories

Cottagecheese

isaTikTokwinforall

UNITGROWTH

+5.7%

PrivateBrand

+11.7%

NameBrand

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Privatebrandsareleaninginto

thewayconsumerscooktoday

NAMEBRAND

PRIVATEBRAND

FRZPotatoes/Onionsunitgrowth

+3.5%

-2.1%

FRZApp&SnackRollsunitgrowth

+0.2%○

-6.5%

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Privatebrandnonedible

salesarealsoincreasingacrossthestore

Yetprivatebrandnonediblesalesareincreasingataslowerpacethanfoodandbeverage

AllOutletSales($Billions)

$61.6

$64.8

$56.2

$57.5

$50.5

+5.1%

20192020202120222023

Nonediblepurchasesaremoresubjecttohouseholdbudgets

thannon-discretionaryfoodandbeverageitems.

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Acrossthestore,nonedibleprivatebrandsalesare

mixed,withunitsdown,butunitshareincreasing

UnitShare

Bothnamebrandsandprivatebrandsareimpactedbyunitconstriction.

Units(Billions)

-0.7%

11.7

11.0

11.1

10.4

10.4

20192020202120222023

+0.5pt

24.1%

24.2%

23.5%

23.4%

23.9%

20192020202120222023

PANDEMICSTOCKUP

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Privatebrandscontinuetogaintraction

acrossnonedibledepartments

Unitsalesaredowningenmerchandhealthdepartments.

Beauty

+2.1%

PLUnits

+0.3pt

PLUnitShare

GeneralMerch

-1.8%

PLUnits

+0.6pt

PLUnitShare

Health

-3.3%

PLUnits

+0.0pt

PLUnitShare

Home

+3.2%

PLUnits

+1.0pt

PLUnitShare

Source:CircanaMULO+,TotalU.S.,YEDecember31,2023

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Morethanhalfofshoppers

lookfordealsmoreoften

Shoppersareincreasinglymorelikelytolookforsalesordeals:

45%December2021

55%October2022

55%October2023

Source:CircanaOmnibusSurvey

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Cohortsimportantfordrivingprivate

brandsconsumerdemand

35%

ofprivatebrandF&Bunitpurchasescome fromhouseholdswithchildren

36%

ofprivatebrandF&Bunitpurchasescomefrom

millennialandGenX

householdswithnochildren

Source:CircanaOmniScanPanel,TotalU.S.,yearendingDecember31,2023

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Mid-affluentHHswithkidsindexhigheston

purchasesofprivatebrandfoodandbeverage

Yetotheraffluentlevelsalsodrivegrowth

HHwithKidsAges0-11HHwithKidsAges12+

Units

UnitIndex

Units

UnitIndex

LOWER

+14.0%

105

+5.3%

115

MIDDLE

-1.4%

123

+0.7%

130

UPPER+4.0%108-0.9%117

Affluency=householdincomepercapitaSource:CircanaOmniScanPanel,TotalU.S.,yearendingDecember31,2023

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Mid-affluentmillennialandGenXhouseholds

withoutkidsindexhigherwithPLfood&beverage

Lower-andupper-affluentmillennialhouseholdswithnokidsarealso

drivinggrowth.

MillennialHHs,NoKidsGenXHHs,NoKids

Units

UnitIndex

Units

UnitIndex

LOWER

+16.2%

106

+1.7%

119

MIDDLE

-1.8%

124

+0.9%

129

UPPER+5.0%110-2.8%115

Affluency=householdincomepercapitaSource:CircanaOmniScanPanel,TotalU.S.,yearendingDecember31,2023

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Consumersareleaningintoprivate

brandstomeettheirlifestageneeds

GenXwithnokidsHHpenetrationisincreasingforprivatebrandsacrossthewidestnumberofcategories

Somecategorieswhere householdpenetrationincreased,andthenumberofexclusiveprivatelabelbuyersofthecategoryincreased

HHwithKidsAges0-11HHwithKidsAges12+MillennialHHs,NoKidsGenXHHs,NoKids

RefrigeratedSideDishes

X

X

RefrigeratedEntrees

X

X

FrozenSeafood

X

MexicanSauces

X

OtherSnacks*

X

X

HotCereal

X

X

X

FrozenPlainVegetables

X

X

Butter/ButterBlendsX

*Applecrisps,carob/yogurtcoated,chocolatecoatedsaltysnacks,nutritionalsnacks/trailmixCircanaOmniScanPanel,TotalU.S.,yearendingDecember31,2023

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Anevensplit:StoreBrandLoyalists,Predominant

SwitchersandNameBrandLoyalists

Storebrandshareofwalletsegments:Amongalloutletshoppers,onethirdaremostcommittedtostorebrands,anotherthirdaremostcommittedto

namebrands,andathirdhaveagreatertendencytoswitchbetweenstorebrandandnamebrandpurchases.

33%

StoreBrandLoyalist

Storebrands>27%oftotaldollarsspent

33%

PredominantSwitchers

Storebrands>17%and<27%oftotaldollarsspent

33%

NameBrandLoyalist

Storebrands<17%oftotaldollarsspent

Source:CircanaOmniScanPanel,TotalU.S.-AllOutlets,Latest52WeeksOctober2023,NBDaligned

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Consumerstendtoconsiderstorebrands

asgoodorbetterthannamebrands

Particularlyforfoodandbeverageandover-the-countermedications,storebrandsandnamebrandsareconsideredsimilarinquality.

StoreBrandvs.NameBrandSuperiority

%StoreBrandLoyalists

StoreBrandSuperiorSBandNBSimilarNameBrandSuperior

PetFood

LaundryDetergentShampoo/Conditioner

CheesseSaltySnacks

OTCMedications

41%

49%

50%

67%

68%

80%

45%

45%

26%

26%

7%

6%

6%5%

53%

13%

5%

8%

%NameBrandLoyalists

StoreBrandSuperiorSBandNBSimilarNameBrandSuperior

PetFood

LaundryDetergentShampoo/Conditioner

CheeseSaltySnacks

OTCMedications

54%

47%

50%

32%

30%

22%

61%

65%

9%7%

7%

6%

44%

44%

35%

70%

11%

8%

Source:CircanaStoreBrandsThoughtLeadershipSurvey,October2023

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Consumershopping

behaviorsarefixed,

regardlessofthelevelofloyaltytostorebrands

Purchasedecisionsoftenoccurbeforeshoppersenterastore,withhabitualbranddecisionswidespreadacrossPrivateBrandLoyalistsandNameBrandLoyalists.

55%

Isticktoalistwhengroceryshopping

75%IalmostalwaysbuybrandsI’veboughtbefore

84%IusuallydecidewhatI’mgoingtobuybeforeIgettothestore

Source:CircanaStoreBrandsThoughtLeadershipSurvey,October2023

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Storebrandsinfluence

wherepeopleshop

Importanceisgrowingamongthosemostcommittedtostorebrands

%WhoFrequentlyorAlwaysChoose

aRetailerBasedonStoreBrandsCarried

Q32021Q32022Q32023

StoreBrandLoyalist

33%

35%

38%

Switcher

27%

29%

29%

NameBrandLoyalist

27%

29%

29%

Source:CircanaStoreBrandsThoughtLeadershipSurvey,October2023

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Brandtrustisfoundational

forallshoppers,butespeciallyforPrivateLabelLoyalists

ItmustbeabrandItrust:

84%PrivateLabelLoyalists

85%PL/NameBrandSwitchers

77%NameBrandLoyalists

Source:CircanaStoreBrandsThoughtLeadershipSurvey,October2023

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StoreBrandLoyalistsenjoyshoppingandhunting

forthelowestpricesmorethanothersegments

Feelsoverwhelmedbyshopping

3ptlowerthanbrandnameloyalists

34%

Makesproduct

decisionsquickly

2pthigherthanbrandname

loyalists

62%

24%

Enjoysshopping

6pthigherthanbrandnameloyalists

Sticktoabudgetwhenshopping

2ptlowerthanbrandnameloyalists

Paysattention

tonutritionandingredientlabels

9pthigherthanbrandname

loyalists

65%

43%

67%

Activelysearchesforlowestprice

1pthigherthanbrandnameloyalists

Source:CircanaStoreBrandsThoughtLeadershipSurvey,October2023

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Commonproduct

attributesrank

highinproductdecision-makingacrossloyalty

e

ng

1.Productperformance

2.Price

1.Productperformance

2.Price

Hom

Cleani

3.BrandItrust

4.PriorExperiencewithBrand

3.BrandItrust

4.PriorExperiencewithBrand

TIED

5.Ingredientlist

5.Ingredientlist

segments

On-trend,lifestyleandhealthandwellnessingredientsthatresonatewithyourtargetshoppersreflectopportunities.

ExtremelyImportanttoBuyingDecision-Top5RankedImportance

PrivateBrandLoyalist

NameBrandLoyalist

Food&

Beverage

1.Taste

2.Price

3.Ingredientlist

4.Priorexperiencewithbrand

5.BrandItrust

1.Taste

2.Price

3.Ingredientlist*

4.BrandItrust

5.Priorexperiencewithbrand

*significanthighervs.2021

NoPrescription

Meds

1.Productperformance

2.Price

3.BrandItrust

4.PriorExperiencewithBrand

5.Ingredientlist

1.Productperformance

2.Price

3.BrandItrust

4.PriorExperiencewithBrand

5.Ingredientlist

Source:CircanaStoreBrandsThoughtLeadershipSurvey,October2023

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Thepercentageofshoppersplanningtoswitch

toprivatelabelmoreoftenishigherthanYAG

Despiteincreasingconsumerconfidenceandeasinginflation,consumersareleaningintoprivatebrands.

50%

40%

30%

20%

10%

0%

%ofShoppersPlanningtoSwitchtoPrivateLabelBrandsMoreOften

2023

2022

JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC

SOURCE:CircanaOmnibusSurveys,2022-2023,

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Circana,LLCCPirapaie,tLaa|nocropnbidliecnisael32

Privatebrandimplications

•Investininnovationthatsupportsthestoremissionandcreatesap