Private Label Growth Outpacing Brands
Across beer, wine, spirits, and cider, private label products are seeing stronger value growth than branded options.
Exception: RTDs currently favor brands, but private labels are making significant inroads.
Takeaway: Consumers are open to private labels, especially in emerging categories where innovation and lower price points are attractive.
Drivers of Private Label Success
No/Low Alcohol: Private labels are investing heavily in this category, offering a range of flavors and innovation, which challenges established brands.
RTDs: Retailers are creating exciting private label RTDs that appeal to off-trade consumers seeking variety and experimentation.
Changing Consumer Habits
Alcohol as a "Transitioning Essential": Due to rising costs of other staples, consumers are drinking less alcohol or seeking cheaper alternatives.
Premiumization: While drinking less often, consumers are opting for premium, indulgent brands for special occasions.
Retailer Advantage
Retailers with established food brands can leverage their reputation to drive interest in innovative private label drinks.
Potential Challenges
Merchandising: Retailers may move to energy-efficient chilled cabinets with doors, potentially reducing visual impact and making browsing more difficult.
Key Takeaways
Private labels are a serious competitor in the beverage alcohol market, especially in growth categories like no/low alcohol and RTDs.
Consumer demand for value and innovation is key to private label success.
Established brands need to up their innovation game to maintain market share against increasingly sophisticated private labels.
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