Grocery shoppers want deals. Store brands — the same or similar products under the store’s name — are a deal and cost less than national brands. Products made especially for the store are also called private label brands. Many of these products taste as good as national brands and the nutritional value is the same.
Ralcorp, which owns the Bemmer Food Group, Ry Krisp, Nutcracker, Carriage House, and Ralston, makes a host of private label products. According to the article, “Ralcorp: The Store Brand Story,” the inferior generic products of the past are gone. “Store brands have earned their rightful space next to national brand products.” The difference between national and store brands is “notable cost savings — about 25% for many products,” according to the article.
Mike Hooker, who is with CBS Television in Fort Collins, Colorado, described the advantages of store brands in the story, “Grocery Stores See Surge in Store Brand Sales.” He used the Kroger grocery chain as an example. In 2008 Hooker said Kroger stores had an eight percent increase in profits and credited the surge to store brands.
The Iowa-based Hy-Vee grocery chain carries thousands of store brands. In an interview, Scott Threlkeld, a manager at the Barlow Plaza store in Rochester, Minnesota, said these brands were chosen carefully. Hy-Vee stores have a test kitchen in West Des Moines, Iowa. Buyers find products, inspect them, and send them to the kitchen for quality assessment.
Products that fail to meet Hy-Vee standards are rejected. Hy-Vee store brands cost less than national brands because the does not have to pay for extra advertising, Threlkeld said. Though the labels say West Des Moines, many store brands are made by well-known companies. Hy-Vee milk, for example, is bottled by Kemps Dairy, the leading Midwest marketer of frozen desserts, milk, and dairy products.
Consumers are turning to bare bones stores like Aldi to lower grocery bills. Andrew Martin describes the Aldi approach in a “New York Times” article, “The Allure of Plain Vanilla.” Founded by two German billionaires, Theo and Karl Albrecht, Aldi stands for Albrecht discount. According to Martin, the stores are often located in nondescript shopping malls.
Aldi prices are lower because consumers do much of the work. You rent a grocery cart for 25 cents (which is refunded), bring your own boxes or bags, and bag your own stuff. No credit cards are accepted. Payment is by debit card or cash. Aldi stores occasionally carry small appliances and this week’s special is a camping tent. “What makes Aldi so special is that, quite simply, its prices are cheaper than just about everyone else’s,” notes Martin.
“Lookout Target and Wal-Mart: ALDI Stores are Coming,” an article on the Marketing Shift Website, also sings the praises of the chain. Aldi carries generic brands, though national brands like Healthy Choice are available. “You may not become a regular customer, but you’ll walk out with more cash in your pocket.”
That sentence aroused my curiosity.
I live in Rochester, Minnesota, and though it has an Aldi store, I had not been to it. Today I went to Aldi and found canned goods displayed in cardboard shipping boxes. The produce department was small, but the fruit and veggies looked fresh. Though I recognized a few brands, most of the brands were new to me. I got some real deals: lettuce for 99 cents, wheat bread for $1.19, honey and oats breakfast cereal for $1.89, boxed macaroni and cheese for a mere 35 cents.
One visit has made me an Aldi shopper. I will buy meat and poultry from the butcher shop, and check Aldi regularly for canned goods and produce. Like me, you may find that buying store brands is easier than clipping coupons. Many stores put national brands on eye level shelves, and store brands on lower shelves. So look low for high savings!
Harriet Hodgson has been an independent journalist for 30 years. She is a member of the American Society of Journalists and Authors, the Association of Health Care Journalists, and the Association for Death Education and Counseling. Her 24th book, “Smiling Through Your Tears: Anticipating Grief,” written with Lois Krahn, MD, is availble from Amazon.
Centering Corporation in Omaha, Nebraska has published her 26th book, “Writing to Recover: The Journey from Loss and Grief to a New Life.” The company has also published a companion resource, the “Writing to Recover Journal,” which contains 100 writing prompts. Please visit Harriet’s Website and learn more about this busy author and grandmother.
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