Store Brand vs Name Brand and How You Can Save Big When Shopping
When I first wrote about private label store brands, it was all about getting to know the name brand that are specific to certain retailers, such as the companies behind the Kirkland Signature store brand at Costco. However, since then I’ve learned how popular it has become for people to shop a store brand as a money-saving technique. Thus this article on store brands vs name brands and what you need to know.
Store Brand vs Name Brand
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In this article on private label store brands, I discussed generic brand names you might find at retailers like Target or Walmart and how you can even buy organic food for cheaper if you stick with the store brand. It’s true when finding Girl Scout replicas, dupes or knock-offs. Outside of cookie season, you can get the same-tasting cookies when you buy the store brands at Dollar General or Family Dollar — shocking, I know.
Not surprisingly, shoppers are going for the store brands these days, primarily because of cost. A recent Chain Store Age article, based on a Numerator survey, showed that nearly 100 percent of American households are buying store brands over name brands. I’ll say that again for the people in the back — nearly 100 percent. That’s almost unheard of in surveys but hey, it’s the economy, stupid. That Chain Store Age article says that, on average, you’ll pay $2 more per item if you chose the name brand vs the store brand. Hey, that $2 can add up over a typical shopping trip.
In which categories are they buying the store brand most often? Survey says:
- grocery (99.9%)
- health & beauty (99.2%)
- household (98.9%) — I’m guessing this includes things like toilet paper, paper products and cleaners
- home & garden (98.0%)
- tools & home improvement (86.3%)
- apparel (84.8%)
- party & occasions (82.9%)
- office supplies (79.7%)
What are store-brand products?
Store-brand products are those sold under the retailer’s own label. These items typically mirror their name-brand counterparts in terms of packaging and functionality but at a lower price point.
These products typically look the same but have different packaging that is generally associated with a particular retailer, such as Kirkland Signature for Costco or Great Value for Walmart. They are often placed near the branded products but often on lower shelves to entice you to purchase the higher-priced brand-name products.
For instance, when researching that article for knockoff Girl Scout Thin Mints, I found the Great Value Fudge Mint cookies nearly next door to Keebler Grasshopper cookies on the shelves at Walmart. As you know Great Value is the Walmart store brand. Keebler is clearly a name brand. The cookies tasted identical. The cost, not so much.
At the time I wrote that article, the Walmart store brand Great Value Fudge Mint cookies cost $1.73. They’re now $2.26. The Keebler name brand Grasshopper Mint & Fudge cookies were $4.99. They’re now $5.11.
That’s significantly more than the average $2 price bump for a brand name over a store brand. Both packages were 10 ounces so, clearly, you get more bang for your buck going with the Walmart store brand for a Girl Scout Thin Mint dupe.
Many shoppers used to consider generic products an inferior quality, but retailers have made significant investments over the years to improve the taste, quality and appearance of the products they now market under their own private-label brands. In fact, you can now find organic products, gluten-free items and other niche foods under stores’ brands that provide consumers with significant savings.
How are store-brand products different?
Beyond the obvious price difference, store-brand products can differ in a few key ways. Packaging and ingredients are the two other major differences you may notice as a consumer.
Store-brand packaging is usually simpler and less flashy compared to name brands, reducing marketing costs passed on to consumers. You will not generally see private-label products advertised outside the store.
While the core ingredients are often similar, there might be slight variations in specific components or sourcing depending on the retailer’s contract with the manufacturer. Some of these differences may be noticeable to the consumer, while others make the product essentially a twin of the name-brand item.
Do store-brand products taste the same as name-brand food?
Blind taste tests conducted by consumer advocacy groups have repeatedly shown that there is little to no discernible difference in taste or quality between store-brand and name-brand products for many everyday grocery items. Years ago, the folks at Giant supermarkets reached out to me to do such a taste test with Giant store brand products. This was when I was living in Eastern Pennsylvania, in a Philadelphia suburb, and Giant was the primary grocery store. Bottom line: my family couldn’t tell the difference between the Giant store brand items I used to make for dinner versus the name brand items that I served side by side.
Pasta and rice are a great first choice to swap to a private label. Flour, sugar, milk and frozen vegetables and fruits are other relatively unprocessed foods that are virtually identical to their more expensive cousins.
Many canned goods, such as vegetables and beans, are also very similar to the name-brand versions. Where products have more flavors, such as some soups and even diced tomatoes, the name-brand quality can have improved taste, depending on your individual preferences.
Similarly, you may prefer name-brand canned tuna over store-brand, as the private-label tuna tends to have less desirable portions of tuna and has a noticeable difference in its appearance and taste. On the other hand, private-label snacks tend to taste and look almost identical to their name-brand counterparts, whether you purchase pretzels or cupcakes.
The same holds true for cereal, where some name-brand cereals may contain unique flavor profiles or fortified ingredients not readily available in private-label brands. You cannot compare premium ice cream to store-brand ice cream, but that doesn’t mean store-brand ice cream can’t compare to many other brands out there. This is where personal preference plays a major role.
In the baking aisle, products such as spices and baking soda are similar, as well. Expert home cooks may notice a difference in items they cook or bake that use private-label products, but most people will not notice that their chocolate cake didn’t rise quite as much when they used store-brand baking powder instead of the name brand.
Final thoughts on store brand vs name brand products
Choosing between name-brand and store-brand products is a personal decision that depends on individual preferences and priorities. While name brands may offer familiarity and certain unique products, store brands provide excellent value for money and can help consumers save significantly on their grocery bills.
If you’re looking to save money, start by swapping a few items for private-label products. As you learn which name-brand items you prefer and which store-brand products perform just as well, you can reduce the impact of inflation on your wallet.
Portions of this article first appeared on Food Drink Life.