Supermarket private-label groceries are encroaching on pantry real estate. Mine included. It may not be politically correct to admit that in food-loving circles. But i’ve decided to let the rat out of the rice bag.
Private labels have always had a place in my kitchen. Tinned sardines, which i feed to the chooks for a once a week tea-time treat, spring to mind. I’ve never bought anything other than private label raw sugar. And flour, which i use so irregularly (i’m a dud baker) that it usually goes out-of-date, is another likely private-brand candidate.
That used to be pretty much the extent of my private label habit. But a cursory glance in my pantry today uncovered a bag of Woolworths homebrand shredded coconut, a tin of homebrand corn kernels, and a bag of Woolworths Macro brand polenta. On the Coles front, there’s a tin each of diced tomatoes, 4 bean mix, and sardines. In the fridge is Coles beef stock.
Am i embarrassed to admit this? Slightly. I know that Australia’s supermarket duopoly, cost cutting, and under-cutting of branded products isn’t a good thing for smaller local producers. And in my defense my pantry, which actually spills across three cupboards (there’s a ‘hoarding for a global meltdown’ feel to it), is far more plentifully stocked with branded products.
But a private label shelf creep is certainly under way. And not just in my kitchen. Shoppers have doubled their spending on private-label groceries from $9.96 billion in 2008 to $19.7 billion in 2012, according to a new IBISWorld report. Private-label products will account for more than a third of grocery sales within the next five years, up from 24 per cent currently.
So what’s behind the trend? IBISWorld general manager Karen Dobie says the growth in private labels has been driven by increasingly frugal consumers seeking better value for their grocery dollars and the rapid expansion of private-label ranges by the major retailers, according to an article in The Australian Financial Review.
“Households have been reining in spending. This, coupled with an increase in the range of private-label products, has led many consumers to make the shift to home brands,” she said.
I can identify with both of those points. Supermarket private brands used to few and far between. Now they’re smack bang in your face, literally, in most aisles. They’re always at eye level, the best selling point in the store, or conveniently placed just where you need them. If you go into a supermarket for a quick “grab and bag” — and if you’re like me you’ll like to get to out as quickly as i can — private brands are convenient.
While we can avoid the convenience factor if we try — just a little — the cost issue is more difficult to ignore.
In recent years food prices have risen exponentially, and we keep being told to expect further hikes. My own food bill rise has largely been self-inflicted as i’ve opted to buy fruit and vegetables from small grocers or markets, meat from my local butcher or growers market, and artisanal bread freshly baked from small producers.
A weekly trip to the local grower’s market can empty a wallet in five minutes flat, and the bag of produce you leave with doesn’t necessarily go very far. I don’t make any apology for subsidising this more conscientious consumerism with some homebrand pantry staples.
The onus is on me, though, not to let either spending habit get out of hand.
At a time of huge global economic uncertainty and being employed in an industry that is in demise (newspaper publishing) it’s irresponsible — silly even — of me to spend frivolously on food. Plus, we’ve just moved house and will be on a tighter budget for some time. But it’s also irresponsible to turn one’s back on smaller producers.
The challenge then is to find a balance that i’m morally, and financially, comfortable with.
Do you face the same challenge? And what’s your stance on private-label brands?
Yes, on a less than average income, balance is the key for me. I’ll buy both branded and homebrand. I buy from supermarkets but also buy from smaller shops, providores and markets. It’s finding a comfortable spot between the personal budget and the bigger picture.
Already I can see that some of my favourite brands are sadly no longer stocked at the supermarket. Other items have gone up quite a bit in price, and suspiciously so, as I sometimes later find the same thing elsewhere for cheaper, at a place which doesn’t have the buying power of the duopoly. Also, I’ve found that fresh food is often cheaper at the markets, though I guess it does depend on which one you go to.
So I’d encourage everyone to shop around. Savings are important but so is the preservation of choice and quality. Keeping that in mind, I try my best.
There’s no cheaper way to source fresh produce than to grow it yourself, of course! I have Brussels sprouts, leeks, garlic, snow peas, lots of lettuce & other leaves, big clumps of celery and shallots growing currently. I’d love to get to the stage where vegetable purchases simply supplement what i grow myself. But still a way to go there! Thanks for your thoughtful response. I agree that balance is the key.
Just to balance that sanctimonious comment with some fresh air, I went to the supermarket today and came home with some Woolies “Select” tortillas … we all do what we can
Too funny. Thanks for letting us know. I feel slightly better about my bad buying habits, now!
Buying supermarket brands endangers small and innovative producers. They take all the risk to develop a product and a market for it, at which point the supermarket brand is introduced and the little producer is dumped. It’s not sustainable, and it contributes to the duoply reducing the scope of what’s available.
There’s a happy alternative for those who are near a Co-op, where you can buy bulk unpackaged goods. Suits if you don’t bake frequently because you can get only as much as you need with no waste. In general the products are organic. At my Co-op (in Canberra) one hour’s volunteering a month gets you a 20% discount. If you’re shopping with small children, Co-op shopping is a vastly superior experience to flouro-lit aisles of judgemental eyes.
There’s a list in the sidebar at http://foodco-opshop.com.au/
It wont suit everyone, and it’s not necessarily cheaper, but anything that keeps us out of the Big 2 supermarkets is a win for better food and the existence of diverse agriculture.
Thanks for the excellent link. Co-ops certainly sound like a good option. I think there is room in my trolly for both private label and branded products. I just have to make sure the former continue to take up MUCH less space. I enjoy the variety of my shopping trip – markets, suburban shopping strips, my small local butcher and a brilliant IGA close to where i work. A large supermarket does factor into that trip, though i think the number of other pitstops and trouble taken to spread my shopping $$ is a pretty good balance.
Interesting post, as always, Rachel. I have to admit that I try to shop at the Farmer’s Markets as much as possible, though you are right about it emptying the wallet quickly. That said, we are doing less trips to Coles or Woollies. I aim NOT to buy Coles or Woolworths brands, including home brand and the fancy labels. While I can afford it, I prefer to support the smaller suppliers… or the better brands of product. Oh, the other thing with market shopping is that the produce lasts longer. The stuff from the majors rots in no time!
Hi Lizzy, I agree, the quality of fresh produce often seems better at my local grower’s market. And i’m much more likely to buy fresh produce from a market or small grocery store – there are quite a few in my neck of the woods, so i’m quite lucky there. I’ve just moved to a new area and there is a supermarket called SuperBarn … it may be my new port of call. Going to check it out this morning. Will report back!
My work mates and I were just having a discussion about this and lo and behold, I have your wonderful article to send to them now!
I have loyalty to certain brands which I am finding are sadly unavailable now, forcing me to buy the private brands which I grugingly have to do if I am out of something and need it straight away. Like everyone above, I prefer to buy my produce from the butcher, grocer or farmers markets. I am just going to have to be more organised when stocking my pantry….
Hi Anna,
I think much of it comes down to time … how much or little of it we have when we’re out shopping. Do we have the time to make an additional journey to another store to buy the brand we really want? Have we got time to rake around the supermarket shelves for a product that it feels more ethical to buy? I know we should MAKE time, but that’s often easier than said. Having said that, typing this now i realise it sounds like i’m making excuses. Maybe i am. Maybe i’m just being realistic.
I have also bought private label frowzen sweetcorn but the taste cannot be compared to the branded super sweetcorn. Since i only live once and have more years behind me than infront I cannot justify eating lower quality food just to save say maybe $0.50c? I rather opt for quality vs quantity
I agree that 50cents may not seem like much – for an individual item. But the cost mounts when you take into account entire grocery list. And multiply that by 4 for a monthly bill, and it sure stacks up. I also agree the the taste of fresh corn over frozen can’t be compared. I cut the kernels off four fresh cobs last weekend and sautéed and buttered them – pure bliss. Fresh (nearly) always is certainly best!
Hey Rach
Great article – on the peas and corn we stopped buying peas and corn altogether when we found main brands were passing China grown peas (with pesticides banned here) through New Zealand as New Zealand produce – Birds Eye have now Australian peas and corn – the only one I have found so far. Also the corn was fantastic and you converted me to mussels so many thanks.
Haven’t seen any discussion on the health of these home brands. Do we trust the origin of home brand. Does the processor need to take short cuts or over process or under or add things to make it cheap enough make it onto the home brand shelves. An article lately challenged that the food we grow or buy from a farmers market is a little bit dirty. Good for our immune systems but would never ever make it into a supermarkt. Our health is being constantly compromised by the food we eat these days. Think obesity allergies diabetes etc. What is cheap now will cost us in the long term
Excellent points, John. I have to admit, whether these brands are actually trustworthy – haven’t cut safety and nutritional corners, etc – isn’t something that has been front of mind. But it certainly should be. And you’ve given me more to think about. It’s a more convoluted issue than it seems, isn’t it?
Rachel- Great post as usual. I think it’s great that you’re happy to admit that you’ve got a place in your pantry for homebrand items. Too often people seem to think that being a food lover means you can’t also want to save a bit of money at the grocery store. I just checked my pantry and I’ve got homebrand canned tomatoes, white beans, flaxseeds and sugar. I use all these things regularly and don’t notice a massive lack of quality. I don’t buy meat from Coles or Woolies and I try to get all my fresh veg from the green grocer, but I’m not perfect. There’s a time and a place (and a budget!) for all foods. Let’s stop judging each other’s grocery baskets!
Well said. There is too much grocery basket judging going on!!