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CAPITAL REGION
Local brands aim for savings, quality and loyalty
BY AMEERAH CETAWAYO Gazette Reporter
Reach Gazette reporter Ameerah Cetawayo at 395-3040 or acetawayo@dailygazette.net.

    As the cost to put food on the table continues to rise for consumers, local supermarkets and stores — both large and small — say the demand is growing for store brands that help families pinch pennies and stretch grocery budgets.
    To consumers grappling with feelings of uncertainty while watching for signs of economic recovery, every dollar counts; price matters.
    In June, New York’s grocery prices increased 1.8 percent over year ago levels, according to the U.S. Bureau of Labor Statistics. But in 2008, grocery prices rose more in one year than they have in nearly a decade, 6.7 percent.
    Research firm IBISWorld recently released a study that gauged costs for the average grocery cart in New York, Los Angeles and Chicago, comparing store brands, name brands, and organic brands.
    Overall, store brands were the cheapest, followed by name brands. Organic brands constituted the most expensive cart of the three, with an almost $40 difference in cost, according to the study.
    George Van Horn, senior analyst with IBISWorld, said large supermarkets are choosing to bypass wholesaling activities as much as possible by taking control of the entire supply chain, which allows the stores to offer lower prices with store brands, also known as privatelabel brands or corporate brands.
    Companies like Price Chopper, Hannaford, Stewart’s Shops and Wal-Mart, as well as smaller grocers like Moorfield’s Green Grocers in Clifton Park and Consumers Cooperative in Niskayuna all said growth in private labels is more than just a trend — it’s become a part of the business model, taking up more shelf space as an overall growth strategy.
    Schenectady-based Golub Corp. owns and operates 119 Price Chopper grocery stores in New York, Vermont, Connecticut, Pennsylvania, Massachusetts and New Hampshire.
    The family-owned company began selling its own brand of food to customers almost 80 years ago through a private label called Sweet Life, a house brand from wholesaler Springfield Sugar.
    Price Chopper brands began in 1973.
    “Corporate brands have been and continue to be essential to our corporate growth strategy,” said Price Chopper spokeswoman Mona Golub.
    “The nature of today’s economy has made it more important than ever for consumers to save money.”
    Price Chopper’s store brands are on average 15 percent to 20 percent less expensive than similar items from a commercial brand. The savings enjoyed by shoppers helps the local economy at the same time, Golub said, because many of the chain’s private brand items come from New York State suppliers.
    For example, Organic Valley, which holds Price Chopper’s half gallon milk contract, keeps 14 New York state farms in business, Golub said.
    “Certainly our accounts with local suppliers help to employ people. We pride ourself on the trade partner relationships that intrinsically understand the consumers’ needs.”
    More than a dozen full-time employees at the company headquarters are dedicated to the development of private label merchandise, Golub said, including the researching of consumer trends, sourcing and testing products.
    The company even handles its own packaging.
    “We’ve developed hundreds of new corporate brand items over the past year alone that cross multiple categories,” Golub said. “The development is based on the changing needs of consumers.” .............>>>>........................>>>>....................http://www.dailygazette.net/De.....r00600&AppName=1

Wow, there's a nice piece of advertising for Golub, eh?

Odd, I don't see places like Sal's, Gabriels, Pede, etc. mentioned