Private label growth (PRGO)
According to the Private Label Manufacturers Association store brand sales grew 11.3% to $228.6B in 2022, a new record. The inflationary environment was behind the growth with higher prices and more consumers trading down. The gap in sales growth between store brands and national brands widened beginning in March as seen in the chart below.
- Store brand sales accounted for 29% of all new dollar sales from U.S. retailers in 2022.
- Store brand growth was strongest in beverages with 19.1% growth in 2022, followed by deli-prepared items and refrigerated items.
- The largest category for store brands was refrigerated which grew 17.1%, followed by general food which grew 14.0%.
Categories with large inflationary price increases saw significant gains in store label sales like eggs which saw store brands grow 49.6% in 2022. Perrigo is the largest manufacturer of OTC store label products and remains a Best Idea Long at Hedgeye.