Erin Novosad | Generic Foods Today | Composition 1 EN 1320 |

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Generic foods today

We all enjoy a great meal, who doesn't like to eat? Half of what we see on Television is food related, i.e. "Food Porn". Whether you go out, or make something at home you are wanting the best for your buck. It had better be good. Generic foods or, private-label foods help us to endure the crunch while still enjoying lunch, breakfast and dinner.
Consumers have cut back sharply on food spending, shunning restaurants, opting for generic products over brand names, trading in lattes for home-brewed coffee and shopping for bargains. We are all under the economic crunch, food expenditures have dropped but it is not because people have stopped eating! This is having a big effect on sales and profits at many food processors, grocery chains and restaurants. In 2008 consumer food spending fell to the steepest decline in the 62 years the government has been compiling figures. Wow! U.S. sales of generic or "private-label" foods as they are known, rose significantly at more than 15%. At the same time, branded food products saw sales rise 2.8%. that says a lot. Generics first appeared on the market in the 1970s; the first items were paper goods and canned foods and beverages. Today, generics have moved well beyond just food products, ranging from cigarettes to pet food. Anyone who has filled a prescription in the last five years or so has been told that a generic drug is available.

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Generic foods today

If the public begins to the perception that there's not much difference, then you can't hold your prices. his also pertains to the pet food industry. The bottom line is this, "Commoditization is the real enemy of branding. A common practice in consumer products is they are often made by the same manufacturer. From jeans to diapers to frozen fruits and the same is true for pet foods. The sheer magnitude of how many products come from one source erodes the whole basic premise of what branding is in the eyes of the consumer-- they feel duped, says a Los Angeles-based brand-strategy firm. In the past, branded pet foods had an emotional advantage; many owners were unwilling or loath to give a low-quality food to their pets. I eat well, I certainly love my animals, so how could I feed them junk? I have fed Eukanuba or Science Diet/ Iams for as long as I can recall. Recently, veterinary nutritionists say they have difficulty tell brands apart. The money you spend on a (premium-brand) diet does not always equate with the quality of the food. Also, there are no requirements around calling something a 'premium' or 'super-premium' product.

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Generic foods today

Pet owners have been reeling the tainted pet food incident which led to the confirmed deaths of more than a dozen dogs and cats, likely sickened many more. Adding to the concern, many brands are made by the same manufacturer and when a problem occurs, it is harder for consumers to find a safe substitute.

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Generic foods today

Nearly every store has them generic or private-label branded foods. Remember the colorless boxes, plain-labeled jars, packages and cartons? Yikes, were those unappealing or what? The main store brands, often comparable in quality with national products, cost less than national brands because less is spent on development, advertising, marketing, packaging and distribution.

These days there are private-label foods at 25% to 30% cheaper than the national brands. Some products with the same characteristics of the national brand are priced are priced 15 to 20% less; and premium products priced at the same as national brands but positioned as better or unique because they can't be bought elsewhere. Supermarket chains are trying to differentiate themselves and build customer loyalty by quality products unavailable anywhere else. Big retailers produce some of their own food by operating bakeries, dairy plants or other facilities. But they also outsource much of the work to third party suppliers.

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Generic foods today

Chains have improved the taste of private-label foods over the years by tapping customers for taste tests. They also hire staff and food scientists to help create products. The following is an example of one such taste test conducted on breakfast cereals. more specifically, Kellogg's Frosted Flakes. The challenger was great Value Frosted Flakes. What did they find out?

For the taste test, consumers were not told which cereal was the national brand and which was generic. Tony was the star, so they started with Tony. Frosted Flakes. Tony proved he was the king of the cereal jungle. But not by a landslide. Only one point separated Kellogg's Frosted Flakes form Great Value Frosted Flakes. Appearance: only one tester said both cereals looked appealing. They both received comments such as slightly fake, slightly crunchy, too sweet and sugary, good and fine. The corn taste scored well on both, while the matter of the ability to "stand up" in milk was 50/50. Some said too soggy, some said too hard.

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