ConAgra & the Future of Private Label

Recently, ConAgra Foods announced it would be divesting its private-label business, Ralcorp, which it acquired less than three years ago. While some news outlets attributed the divestiture to investor pressure and poor management or execution on ConAgra’s end, others highlighted an overall stagnation trend in private label.

In fact, private label market share hasn’t budged since 2011.

Source: IRI

Source: IRI

Consumers continue to recognize the unique value branded products deliver. As long as private label growth remains flat, brand marketers should focus on differentiating their products and firmly establishing their unique value proposition. As we pointed out recently, price isn’t necessarily the be-all and end-all for consumers, particularly those looking for healthy solutions.