Wednesday, June 10, 2009

Generic versus brand-name

Posted by Owen Morris on Wed, Jun 10, 2009 at 12:00 PM

grocerycartwhiskeyboytx_thumb_510x382.jpg


Let it be said once and for all that when it comes to ketchup, no restaurant should mess around with anything but Heinz. Sure, it's all well and good to have premium house-made ketchup but if some people don't want that (and they won't) you better have that classic awkward-pouring glass bottle ready just in case.

There are only a few other food basics that merit such loyalty. Hershey's chocolate syrup, Oreo cookies, Tabasco, Frank's Red Hot Sauce and Sriracha, for instance. Yet in categories where there's no one correct product people still buy name brands over store brands. Is it worth it to spend the extra 50 cents on Jolly Green Giant spinach versus the grocery store's brand?
 
The financial Web site The Street looked into the question and came up with a surprising conclusion: As the difference in quality between name brands and store brands has declined, the social stigma of buying the cheaper store brand has all but disappeared.

Name brands may be contributing to their own demise by also

producing the cheap store brands in their factories.

Alcoa,

the maker of Reynolds Wrap Aluminum foil, produces store brand foil.

McCormick produces herbs and spices without its signature label, and

Birds Eye, known for its frozen vegetables, produces a number of frozen

and canned vegetable products.

In other words, there's no

reason to pay extra for the above products and the savings are no

laughing matter. Store-brand health-and-beauty products are often more

than 50 percent less expensive than the category leader. In the tight-margin

food industry, store brands are still 25 percent cheaper.

Sometimes,

though, there are big differences (such as with Heinz Ketchup and

Hershey's syrup). When in doubt, check the ingredient list:

Store brands that emphasize value may contain cheaper ingredients,

and even when national brands manufacture a different type of product

to be sold as a store brand, they make it to the store's own

specifications, which could mean a change in ingredients.

(Image via Flickr: Whiskeyboytx)

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coscto kirkland brand won many tests in consumer reports in food and other categories. I have my car and home insurance through costco, buy tires, contacts, electronics,food,and because of my executive membership I get a 2% rebate which covers the cost of said membership and more.aldi is also good and they kicked walmart's ass in europe

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Posted by meesha.v on June 11, 2009 at 9:57 AM

Basically, all of your big stores are going to be the ones with the best quality store brands because the store itself is a viable brand. WalMart, Target, Costco, Kroger, Safeway, etc. are all going to demand high quality product to put their store brand label on.

Best Choice sucks because AWG has minimal focus on developing their store brand due to so many different chains of stores pulling from their warehouses. None of those chains are going to help pitch in for the development, so I'm sure AWG doesn't see the point.

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Posted by Chimpotle on June 11, 2009 at 9:55 AM

You're right about Costco. I just wouldn't make enough purchases to justify a membership.

Target's store brands are usually really good too. They always have something interesting to try.

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Posted by jjskck on June 11, 2009 at 7:28 AM

Store brands like Always Save or Best Choice can be pretty crappy depending on what you're buying. (Best Choice frozen fruit is the pits, for example) But macaroni is macaroni no matter who makes it.

Shop at Aldi, however, and you'll see almost no brands you've ever seen before. Most of it is pretty good stuff, too - I've had almost nothing there I didn't like, including their ketchup. (it's almost as good as Heinz and way cheaper)

Another good place for store brands is Costco. If they have a store brand, it's every bit as high quality as the brand names and costs about a third as much or even less. For less than a 48-pack of Claritin costs at the drug store, you can buy a bottle of 300 at Costco.

As someone else mentioned, it's not unheard of for the brand name manufacturer to also make the off-brand stuff, so in some cases the only difference is the name - literally.

It's always worth a try - just make sure you only buy one the first time you try something. You can stock up if you like it.

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Posted by Realist on June 11, 2009 at 7:20 AM

Yes, Josh! Last night the bartender at Harlings mixed my Skyy Cherry with Always Save diet cola... it's definitely not the same.

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Posted by sweetbeamoney on June 10, 2009 at 1:09 PM

I just can't buy store brand sodas. No matter what, I can't see myself with a can of generic soda rather than a Coke or Sprite.

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Posted by Josh on June 10, 2009 at 12:55 PM

I'm fine with store brand products in lots of cases...beans, broths, pizza sauce, etc...

The one time I found a store brand that just wasn't worth the savings was when I tried buying pizza dough in a can that was store brand instead of the Pilsbury I usually got. I saved over $1.50, but the dough cooked into a hard, inedible crust for the delicious pizza I planned to eat for dinner. I wound up having to eat tuna salad instead that night. I was pretty peeved about it.

Holla on the Hellman's (or "Best Foods" as it is in most stores outside the midwest).

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Posted by Faith on June 10, 2009 at 12:30 PM

I despise mayonnaise but I have often heard it said that there is no substitute for Hellman's.

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Posted by DLC on June 10, 2009 at 12:12 PM

One of the main brands to not deviate from is Lea & Perrins Worcestershire sauce.

Most of the time, you will find that the brand manufacturer that is also producing the store brand is the number 2 or 3 brand in the category. It makes sense to get into the store brand because while you may cannibalize some of your own business, you're taking more business away from your toughest competition who has the higher selling label.

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Posted by Chimpotle on June 10, 2009 at 12:11 PM

Is it universally known that there is no substitute for Heinz and Oreos? Those are the first two items I will not go cheap on.

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Posted by jjskck on June 10, 2009 at 11:39 AM
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