In a blind taste test conducted by the Washington Post last year to determine the best bottled marinara sauce, Rao’s Homemade emerged as the top pick, priced at $10.59 a bottle.

However, the surprising runner-up was Trader Joe’s Tomato Basil, which retails for just $1.99.

Store brands have transformed from subpar generic options to private-label products that can rival national brands in terms of quality and price. Today, these products are thriving in supermarkets.

According to the Private Label Manufacturers Association, private label items accounted for 20.7% of grocery sales in 2023, marking a record high. Last year, store brands generated $236 billion in revenue, once again a new record. As of mid-July, this trade group estimates that sales in 2024 could surpass $250 billion.

Younger consumers, accustomed to private labels, haven’t experienced a time when store brands were synonymous with poor quality.

“Store brands currently fulfill a vital need for consumers,” remarked Elizabeth Hasle, 31, from Seattle, who favors Costco’s Kirkland Signature brand.

“For example, you can buy three liters of their olive oil for twenty bucks, and it’s genuinely good quality,” she noted. “That makes me very happy.”

‘The flavor’s improved. The carbonation’s enhanced.’

Taylor Harms, 28, from Fresno, California, found store brands while attending college and has stuck with them ever since. His current favorite is Walmart’s store-brand seltzer water.

“They cost about 89 cents for a liter,” he explained. “I find that for similar products from big brands like Schweppes or Perrier, this is way tastier and has better carbonation.”

Analysts note that decades ago, store brands were typically viewed as bottom-shelf offerings. They were cheap, yes, but also looked down upon as bland and lacking in flavor compared to pricy name brands.

Now, many store brands not only compete well with well-known brands but also with high-end gourmet options like Rao’s.

“I believe store brands have become trendy,” stated Phil Lempert, a grocery industry expert. “It’s satisfying to discover high-quality items that are also cost-effective. That’s a winning combination for store brands.”

Another recent taste test conducted by the New York Times’s Wirecutter showcased store-label frozen pizzas successfully competing with some of the nation’s top brands. Notable choices included a $6 wood-fired pizza from Trader Joe’s and a $7 Good & Gather pizza from Target.

The Transformation of Store Brands: ‘It’s a Significant Shift.’

“Research shows that 85% of consumers believe that the quality of private brands is equal to or better than that of national brands. This marks a significant shift,” said Jim Griffin, president of Daymon North America, a company that assists supermarkets in developing private brands.

In the inflationary 1970s, store brands provided a solution to rising prices but often at the expense of taste.

“Those brands had yellow and black labels,” Lempert remarked, often designed in a plain style without any appeal. “They represented the lowest quality food available, despite their low prices.”

The change began with leading chains like Loblaw in Canada and A&P in the U.S., which launched store brands that could rival name brands in flavor while offering more competitive pricing.

When Loblaw introduced chocolate chip cookies under its President’s Choice brand, it set a high standard: using real butter and double the amount of chocolate chips compared to leading brands. This line became Canada’s best-selling cookie.

In the ’90s, Trader Joe’s and Whole Foods Market became prominent chains featuring store brands that boasted gourmet flavors at more affordable prices.

Almost Every Grocery Store Chain Now Features a Private Label

Today, it seems every notable grocery store chain has its own private label. Here are a few of the best,

In addition to various brands mentioned earlier, Real Simple magazine highlights:

• ALDI Simply Nature: “Affordable, organic, non-GMO, and free from artificial preservatives.”
• Kroger Private Selection: “Aims to provide the finest culinary experience at competitive prices.”
• Albertsons Signature Select: “Popular items include mac n’ cheese, bacon, wine, pasta sauce (the black truffle pasta sauce sells out regularly), and ice cream.”

According to Griffin, grocery store chains are increasingly offering store brands at various quality tiers. For instance, Walmart has the Great Value line that goes head-to-head with national brands. This year, Walmart introduced bettergoods, a gourmet label designed for food enthusiasts.

With this new brand, “they’re appealing to a wealthier customer base than they would have attracted four or five years ago,” stated Griffin.

However, not every store brand becomes a runaway success. Washington Post tasters noted that while Walmart’s Great Value Marinara sauce ($1.59) is undeniably affordable, it “didn’t adhere to noodles properly.” Similarly, Wirecutter reviewers described Costco’s Kirkland Signature Pepperoni Pizza as “too sweet” with a “slightly bitter taste.”

Inflation Drives Interest in Store Brands

Nevertheless, the inflation surge over the past couple of years has pushed shoppers to actively seek out store brands, similar to how diners search for value meals at fast-food joints.

“Today’s consumers are knowledgeable, having grown up with store brands,” said Peggy Davies, president of the store brand association, via email.

“When a consumer samples a store brand product and has a good experience, they are likely to continue using that brand,” she explained. “This loyalty, combined with increased competition among retailers to foster brand loyalty, is driving growth.”

Some grocery stores primarily feature their own brands. For example, at ALDI, 90% of products are private labels, which necessitates a strong commitment to quality.

“For us, this is truly the only choice available in the store,” commented Scott Patton, vice president of national buying at ALDI. “It absolutely must be excellent.”

A successful store brand can foster customer loyalty for grocery chains in ways that national brands cannot, suggested Lempert.

For instance, Trader Joe’s sells store-brand Chili & Lime-Flavored Rolled Corn Tortilla Chips, which continuously rank as some of their top-selling products. These chips can only be found at Trader Joe’s.

“Retailers examine leading name brands and aspire to provide a better quality product at a more attractive price,” said Lempert, “because you can’t find it anywhere else.”