February brought some good news for brand name food manufacturers. According to the article Branded Foods Tick Up from last Friday’s Wall Street Journal, branded-food unit sales increased 2.4% in February. This is a nice swing from the 0.2% decline in January. This isn’t necessarily bad for private label brands either, as mentioned in an excerpt from the article:
For grocers, giving back market share to pricier branded items is not a bad thing. Over the past year, supermarkets lowered private-label prices to widen price gaps with branded goods. Grocers sought to gain leverage when negotiating prices with big-name suppliers. Now, retailers are slowing those aggressive price cuts, according to a Morgan Stanley price survey.
Will the trend continue? Driven by increased promotional activity and narrowed price gaps, can brand name foods take back some of the market share lost amidst a volatile economy?

