The store brands business is booming

A major reason for the double-digit surge was that the inflationary environment motivated more shoppers to try, buy, like and remain loyal to store brands because of the quality and value they provide.

Last year’s impressive performance also comes at a time of heightened private brand innovation in areas like health and wellness, sustainability, convenience, indulgence and more. The industry has successfully introduced new product lines, expanded existing lines, and launched impactful marketing and promotional programs.

While private brand unit sales slipped 1% in 2022, they outperformed national brand unit sales, which dropped -4.1%.

Of the 17 departments IRI tracks, 16 showed store brand growth. Numerous categories even had double-digit sales gains. The fastest-growing segments are beverages, up 19% to $12 billion; deli prepared foods, 17% to $5.9 billion; refrigerated foods, 17% to $47.4 billion; liquor, 15.6% to $62 million; general food, 14% to $38.6 billion; floral, 13.5% to $883 million; bakery, 12.6% to $8.4 billion; produce, 11.9% to $13.5 billion and deli meat, 10% to $1.7 billion.

Strong sales were also reported in general merchandise, up 9% to $27.7 billion; frozen foods, 8.2% to $17.7 billion; deli cheese, 5.5% to $754 million; meat, 5% to $26.5 billion; health care products, 3% to $17.6 billion, beauty, 2.7% to $3.7 billion; and homecare, 2% to $2.7 billion.

The only category that saw a sales decline was tobacco - not surprising at a time of declining cigarette use.

The outlook for 2023 looks just as promising, as shoppers continue to make store brands their brand of choice.

WITH JAN VAN LIER PLMA’s International Trade Show Director

PLMA’s Jan van Lier Previews the World’s Largest Store Brands Event

The world’s largest private label show is just around the corner. And in spite of War, Earthquakes, Inflation and plenty of man-made disasters, it comes at a time when store brands are stronger than ever and showing no signs of slowing down. So what better time to sit down with Jan van Lier, PLMA’s World of Private Label Show Director. I’ve known Jan since 2003. He hasn’t aged a day since then. I’ve gotten shorter, slower and balder…but that’s life. Here are some highlights from our chat in early March.

Q. Good to see you Jan. You seem remarkably relaxed for someone in the middle of planning for the World’s largest private label event. How do you remain so calm?

A. Sometimes calmness only appears on the outside Phil, but I think you are right in your observation. I still remember how I felt before my very first PLMA show - very nervous - but with the experience gained since then and knowing myself surrounded by an equally experienced and highly motivated PLMA team, it’s hard to be anything else but calm.

Q. In January, a report on the BBC’s website stated that the Dutch are notorious for being direct, so why don’t you let us in on the “secret” to PLMA’s World of Private Label success?

A. The secret to the success of the show is not just one but instead a mix of many components. In addition to the motivated team I mentioned earlier, there are the clear opportunities that private label offer to suppliers, to retailers and to consumers; the dedication applied by the export boards of many countries to promote private label as a business model to boost export for their companies, and the highly international and pure B2B level of the event, just to name a few.

Q. But all kidding aside, we’ve exhibited at the show each year since 2003, that’s a least 100 shows and the 2022 event may have been the best. I’ve witnessed growth in exhibitors, attendees and quality year after year.

Aside from the hard work of the PLMA, how do you account for this phenomenon?

A. We have in fact seen growth on all fronts as long as I have been with PLMA, a few more years before you first visited the show in 2003. Our visitor numbers in 2022 were almost the same as in 2019, which was our last in-person before the pandemic, but I have heard many people say the same thing: ‘2022 was the best show so far’. I think that what added to the excitement for many was the impossibility to meet in person for such a long time, and it proves the ongoing importance of an in-person platform like the “World of Private Label”.

Q. What are some personal favorite moments over the years and when was your first show?

A. My first show was PLMA’s U.S. show in Chicago in 1997, followed by the 1998 “World of Private Label” in Amsterdam. Every show had its own favorite moments but one of the more recent ones was when we first made use of the Europa Plaza construction in 2015, built as a solution for extra show floor space specifically for PLMA, and a huge project. My most recent favorite moment was the opening of the 2022 show; after 2½ years of postponing and cancelling in-person shows, being back on that show floor and seeing all those people moving around and talking business to each other was unforgettable.

Global Retail Brands published a special issue last September based on PLMA’s research on European shopping trends. The essence was that European shopping habits have changed and will continue to do so. Do you think this ever-changing market fuels the demand for both attendees and suppliers?

From that research, it became clear that private label purchases were not only growing but were also showing signs of future expansion. In addition, the results showed that product attributes like organic, eco and health are more and more important to consumers. Retailers and suppliers need to work together to respond to the consumers’ wishes and for private label, the best place for retailers to meet with existing suppliers or find new ones is PLMA’s “World of Private Label”, and we see that reflected in the interest in exhibiting or attending.

Q. Getting to specifics, is there any exhibit space left for this year? If so, what should a company do right now to secure that space?

A. I am afraid not. Due to the high demand for exhibit space, we have had to use a waiting list procedure for many years already, and the 2023 show is no different in that respect. Any company seriously interested in exhibiting should make sure to apply for space as soon as exhibitor registration opens in October, as the show usually reaches a fully-booked status in November.

Q. The name World of Private Label suggests that you have retailers and attendees from around the globe, can you elaborate a bit? Any new countries or regions that retailers would be surprised to find?

A. The show welcomes exhibitors from some 70 countries and visitors from more than 120 countries. Whereas the majority of participants are from Europe, we see a growing interest from Asia as well as from the Americas and Asia. But eventually, it is all about the products offered by exhibitors, and that offer keeps on growing.

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WITH JAN VAN LIER PLMA’s International Trade Show Director

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Q. What advice would you give a first-time attendee or exhibitor?

A. To a candidate exhibitor, I always suggest visiting the show first. The PLMA show is quite specific in its setup and organization and the decision to start exhibiting should be based on a long-term view; without having seen the show first, one cannot prepare as one should. To a candidate visitor, I always suggest preparing a visit using our online Show Navigator. With more than 2500 exhibiting companies and without preparation, the show can be overwhelming otherwise.

Q. Please provide the facts Jan. Dates, time, location, favorite Amsterdam restaurants, etc.

A. This year’s show is held on Tuesday 23 and Wednesday 24 May, at the RAI Exhibition Centre in Amsterdam. The show opens at 09.00 on both days, closes at 18.30 on Tuesday and at 16.30 on Wednesday. Pre-show seminars are scheduled for Monday 22 May from 14.00-16.00 and are free to all registered exhibitors and visitors.

Amsterdam has a lot of good restaurants, including near the RAI, and new ones are opening up regularly as well. To first-time attendees or anyone else looking for suggestions, I would recommend checking www.iamsterdam.com.

Q. How do you unwind when it’s all over?

A. After my very first show, I thought it would be a good idea to take a week’s holiday but that didn’t work out well as I was too tired to enjoy it. We are fortunate enough for the show to take place in May though, so as the PLMA team and I work out all post-show details and start preparing for the next edition on a more relaxed schedule than we had before the show, I start preparing for my long summer holiday.