Albertsons, Stop & Shop launch private label brands

The data point: Roughly three quarters (72%) of consumers say the economy has directly impacted their grocery shopping habits, per a new Ibotta report.

• Roughly the same share, 75%, would try a different brand if it was offered at a lower price than what they usually purchase.
• Nearly two-thirds of consumers, 64%, said price is more important than a brand name.

Those findings aren’t surprising given that annual private label dollar sales are up 34% over the past four years ending in 2023, per the Private Label Manufacturers Association.

Why it matters: Grocers have taken note of consumers’ growing willingness to buy store brands.

• Albertsons this week launched Bee Lightly, a new wine label featuring a flat bottle package design made from 100% recycled polyethylene terephthalate that seeks to highlight the grocer’s sustainability efforts.
• That release came just weeks after Albertsons rolled out Overjoyed, its first major brand launch in several years. The brand focuses on baked goods, baking supplies, gifts, and decor, while an extension of the brand, called Overjoyed Boutique, includes giftable items like vases and candles.
• Stop & Shop this week launched Taste of Inspirations, a private label line of coffee that’s available in packaged bags or multipacks of individual servings.

Our take: Grocers are wise to lean into private labels to differentiate their offerings and build long-term loyalty.