:. Food Industry News


US: Rising Gas Prices Fuel Explosive Growth of Store-Brand Baby Formula

Source: PBM Products
11/06/2008

Gordonsville, VA, June 10, 2008 - Rising gas prices have prompted many U.S. consumers to save money by buying store brands instead of national brand products. Data from a recent MORI survey supports this growing confidence in store brands, with nearly 70 percent of respondents believing store brands are as good as or better than national brands. More statistics support this growing confidence in store brands and a surge in store-brand baby formula sales:

Daily News Alerts
  • Nearly 25 percent of respondents in a new Nielsen consumer spending habits survey admitted they now buy less expensive brands because of gas prices.*
  • Store-brand baby formula sales have grown 35 percent in the last 12 weeks.**
  • A recent report released by IRI found that 50 percent of consumers have bought more store brands in the last six months.***

The IRI report also reveals consumers from all income levels are buying store brands:

“Rising costs have encouraged consumers across income segments to allocate more of their spending to private label – providing retailers with a unique window of opportunity to extend reach beyond the core lower-income market.”

“Americans are being hard-hit now that gas prices have exceeded four dollars a gallon,” said Paul B. Manning, CEO of PBM Products, the largest U.S. supplier of store-brand baby formulas. “If consumers really want to save money on infant nutrition, mother’s milk is best and the most cost-effective means to feed babies. If parents choose baby formula, there is no better infant formula than a store brand, just more expensive formulas.”

About Store-Brand Baby Formula

PBM Products introduced the first store-brand baby formulas to the $2.8 billion U.S. infant formula category in 1997. Since then,
PBM Companies have been supplying baby formulas to more than 20,000 leading retail locations in the United States, Canada, Mexico, China, Europe, and South Africa.

Store-brand baby formulas are sold under a retail store's private label and, like name-brand formulas, meet the same strict infant formula nutritional guidelines determined by the FDA. Choosing a store brand can save parents up to $500 a year on baby formula.

About PBM Products

PBM Products is privately owned and based in Gordonsville, VA. The PBM family of companies specializes in manufacturing, distributing, and marketing consumer food, nutritional, and pharmaceutical products. PBM has been named among Entrepreneur magazine’s fastest-growing companies in America. For more information, visit
www.pbmproducts.com and www.pbmnutritionals.com.

*Accessed June 9, 2008, from
http://app.subscribermail.com/dspcd.cfm?ec=7723dea9c98e42c684afe5ce4695fe78&email=3ad031abc4d540c88678b19ce2d9ad9c

**AC Nielsen FDMx Total U.S. Sales for the 12 weeks ending 5/17/08.

***Accessed June 9, 2008, from
http://us.infores.com/filelib/timestrends/TT_May_2008_Tranforming_Economy.pdf



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