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YONKERS, NY – Buying store brands can not only get you high-quality products, it can save you hundreds, sometimes thousands, of dollars a year, according to the August 2005 issue of Consumer Reports. Comparison tests performed by CR experts of 65 grocery products in six categories (peaches, yogurt, plastic bags, facial tissues, paper towels, French fries) for the Ratings report demonstrate that store brands are at least as good as national name brands. And consumers are also starting to notice, as many of them are growing hesitant about paying more for some name brands because they don’t see a difference to justify the higher price.
CR’s findings will be news to anyone weaned on the no-frills "generics" of the late 1970s, when double digit inflation prompted consumers to put price ahead of other considerations. Today, many store brands are aggressively competing with name brands in quality, packaging, and variety, and even in select product lines such as organic and natural foods. Indeed, during the past several years CR’s tests often found that store brands are as good as name brands. At the same time consumers are also changing their attitudes about store brands: 1 in 5 products sold in supermarkets, mass merchandise stores and drugstores carry the chain’s own label.
When CR averaged the amounts that staff shoppers paid across the U.S. for many samples of each product tested, the experts found that national brands cost an average of about 25 to 50 percent more than similar-quality store brands.
How to Choose
Trying store brands carries little risk — most stores offer a money-back refund if you are dissatisfied — and the rewards can be considerable: 15 to 20 percent average savings across all categories of store brands sold in supermarkets. If you are thinking about buying more store brands, CR has the following tips to make the best decisions:
Consider quality and value. The fact that a national brand also makes store brands doesn’t mean the products are identical. Quality also depends on the retailer’s specifications. If a store brand wants to emphasize value, it might opt for lower-grade ingredients.
Know the differences within the same national brand. A national-brand manufacturer might make several formulations of the same product to appeal to consumers with different needs — and snatch valuable shelf space from competitors. Don’t expect the same performance from all of them.
Know the differences within the same store brand, too. Most store brands come in several tiers to dispel the notion that store brands are strictly for penny pinchers.
Try over-the-counter remedies. Store-and name-brand versions of aspirin, cold and cough remedies, antihistamines, and other such medications are likely to be even more similar than other types of products. If the active ingredient is the same in name-brand and store-brand products both must have met regulatory standards for efficacy.
Who’s Behind the Store Brands?
Of the thousands of manufacturers of store brands, many are national-brand companies. But, neither retailers nor big-brand manufacturers are anxious to reveal that information, and you won’t find any clues on product labels. That doesn’t mean that national brands simply change the label on the same products. They sometimes manufacture a different type of product to be sold as a store brand, and even if it’s the same type, they make it to the store’s own specifications, which could mean a change in ingredients or quality.
© Consumers Union 2005. The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes.
