More consumers choosing store brands to save money

FARGO - Kimberly Onnen of Barnesville, Minn., swore she would never use store-brand ketchup.

Then she tried Walmart's Great Value brand to save some money and found that it tastes just like Heinz.

While not all store brands pass her ketchup test, Onnen has started switching to store brands and for the most part hasn't noticed much of a difference in taste or quality, she said.

"I think the only downside of buying store brand is that manufacturer coupons can't be used on them, but the overall savings of buying store brand compared to purchasing name brand with a coupon is so much better," Onnen said.

Onnen has joined the growing ranks of consumers forgoing name brands in favor of savings.

A 2010 Neilsen survey showed that 60 percent of North American consumers said they bought more store brands during the economic downturn, and 94 percent of those consumers said they would continue buying store brands when the economy improves.

In the past year, 84 percent of Americans purchased store brands, which accounted for almost one of four products sold in supermarkets and a record $55.5 billion in sales, according to Consumer Reports.

Neil Stern, a senior partner and retail consultant at McMillan Doolittle in Chicago, told McClatchy-Tribune Information Services that store brands typically become more popular during down times and keep their appeal.

"We see these spikes up, and then as consumers have more money again, they tend to stick with their (new) habits," Stern said, adding that the market share of private brands will continue increasing.

Store brand products can save a family that spends $100 a week on groceries more than $1,500 a year, according to a Consumer Reports study released in September.

Savings that could come in handy as food prices continue to increase.

Grocery prices are forecast to rise 3 to 4 percent due to higher food commodity and energy prices as well as stronger global food demand, according to the United States Department of Agriculture 2011 Food Price Outlook.

In evaluating five supermarket chains and comparing store- and name-brand prices for 30 everyday items, Consumer Reports found shoppers saved an average of 30 percent with store brands and as much as 52 percent on some items.

But some shoppers are not convinced.

Steve Shark of Fargo said his experience with store brands over the years has been "very much hit and miss."

"You can save money, but it can be an adventure with inconsistency," he said.

Some shoppers are reluctant to try store brands because they prefer name brands, they think name brands taste better, and they don't know if store brands are as high in quality, according to the Consumer Reports survey.

But in 21 Consumer Reports taste matchups, national brands and store brands tied 11 times, national brands won seven times, and store brands prevailed three times.

Consumer Reports also found nutrition similar for most of the tested products.

Matt Leiseth, president of Hornbacher's Foods, said that with the economic downturn, more people have been willing to try the private label lines and they're finding much better quality than they might remember from the generic black-and-white boxes of the 1970s.

Walmart has seen more of a movement toward store-brand products in the past three to four years, said John Pies, store manager of the Fargo Walmart on 55th Avenue South.

But that also depends on how familiar a shopper is with the brand, he said.

"Our frequent shoppers utilize the Great Value brand tremendously," he said. "The folks who haven't shopped with us consistently won't necessarily pick those up as frequently because they're not as familiar with them."

Pies said he expects more consumers to turn to store brand products as food prices increase because they're saving money without sacrificing quality.

Chris Svedberg of Fargo said certain store-brand products seem to have better quality or flavor than some name brands, but his family always buys whichever brand is cheaper, and it's not always the store brand.

"If you shop around, you often find that the name brand products are cheaper than the store brand, especially if coupons are available," he said.

Readers can reach Forum reporter Tracy Frank at (701) 241-5526

1/3: A customer reaches for Hornbacher's brand milk at the north Broadway location in Fargo. In the past year, 84 percent of Americans purchased store brands, which accounted for almost one of four products sold in supermarkets and a record $55.5 billion in sales, according to Consumer Reports. David Samson / The Forum

2/3: Hornbacher's brand orange juice is displayed at the north Broadway store location in Fargo. David Samson / The Forum

3/3: Frozen foods and dairy manager Jeremy Vogel restocks the supply of Hornbacher's brand milk at the north Fargo location. David Samson / The Forum