Innovation on Display At 2009 PLMA Show
The success of store brands across the country and their increasing popularity with consumers fueled expansion and innovation for PLMA’s 2009 Private Label Trade Show.
tore brands in U.S. supermarkets reached an unprecedented 23% market share in 2009, according to the latest statistics. Total sales of store brands surpassed $85 billion as industry recorded annual sales gains from 6-10% in supermarkets, drug stores and mass merchandisers. Rather than a temporary effect of uncertain economic times, there are clear indications that retailers are winning new supporters to their brands.
Many products showcased at the 2009 PLMA Trade Show were perfect examples of the high quality and innovation of today’s store brands.
Chairman’s Welcome
After Brian Sharoff, PLMA president, introduced the board members at the Keynote Breakfast on Monday morning of the show, Tom Chaffee, PLMA’s first vice chairman and director of business development/trade relations for Strum Foods, Inc., gave the official welcome.
“By almost any measure, this is an extraordinary time to be in the private brand business. Over the past twelve-months, practically everyone – the media, consumers, and especially retailers – have focused their attention on store brands growth. More and more shoppers are giving the products a try and finding satisfaction with their high quality.
At the same time, retailers are measuring the gains in revenue and profits as a result of winning over new customers to their brands… even among die-hard national brand loyalists.
“To say it’s the economy driving private label’s fortunes, however, is mistaken. It is the 30-year commitment to value and quality improvements by the makers of private brands, fueled by the dedication of retailers and wholesalers to building their own brands, that has brought store brands to its unprecedented 23% market share in 2009.
“What’s going to take store brands to the next generation? The answer is one word: Innovation. And that is what this year’s PLMA show is all about. With its Innovation Hall, PLMA is opening new doors for the industry, as well as for a whole new range of companies with the capabilities that retailers and manufacturers require to support the continued growth and success of store brands.
“Meanwhile, there is an ongoing program of seminars and workshops to focus on the many ways that real innovation is being achieved… in areas from retailing to market research, marketing, promotions, technology, packaging, design, testing and certification.
“Of course there’s plenty of innovation to see on the show floor, with new companies and new products in the both the food and non-food areas… including more natural and organic products, options for health and convenience, refrigerated and frozen foods, plus new international pavilions, licensing and more.”
Speaker Highlights
Keynote Speaker: Scott Lucas, executive director of Interbrand, provided his views on the potential for private brands to use innovation as a way to leverage private label growth and gain consumers and market share.
“The private label brands that take advantage today of shoppers seeking value and consumers open to starting brand-based relationships, will have the greatest potential to retain these new value-seeking customers long after the economy improves and life returns to normal,” said Lucas.
He challenged listeners to build brands on a foundation of shopper insights and consumer understanding and create meaningful and profitable relationships with consumers that will thrive and survive.
The Winning Formula to Achieve Rapid Private Label Growth: presented by Jeremy Whinnett, Business Solutions Director for Agentrics Product Lifecycle Management, and Frederic VanRoie, Agentrics Business Development Manager.
The presentation shared insight into what retailers are seeking: controlled and sustainable growth, to leverage brand appeal to increase sales and loyalty, guarantee product consistency and compliance, to boost speed to market, and to increase volume while controlling costs. Agentrics is a leading provider of business solutions to retailers and manufactures with over 500 employees across 24 countries.
In addition to the breakfast presentations, there were a number of concurrent workshops offered in the areas of retailing, marketing, market research, packaging and design, and testing and certification. Putting innovation into practice was the focus of many of the speeches and seminars from leading companies. Presenters included A.T.
Kearney, Agentrics, Aisle 9 Group, Audit Recovery, Inc., Avery Dennison, BRC Global, Datamonitor, GfK Custom Research, HP Indigo, ILS, Interbrand, Logix 3 LLC, Marketing Management, Inc., MeadWestvaco, Miller Zell, Mintel, The Nielsen Company, North Cliff Consultants, QMI-SAI Global, Retail Optimization, Inc., Silliker, STR - Specialized Technology Resources, United* DSN, Vestcom International, Wallace Church, and Willard Bishop Consulting.
Show Overview
The nation’s largest marketplace for store brands presented more than 2,000 exhibit booths from the leading manufacturers of private label products, reflecting year-to-year growth of more than 15% for the show over all. More than 4,500 visitors to the show included private label buyers and executives from virtually every major retail chain and wholesaler. This year’s show also included international pavilions from Canada, Italy, Mexico, India, Taiwan and Brazil, and a World of Private Label Pavilion with exhibitors from the PLMA Trade Show in Amsterdam.
Making its debut at the 2009 show was PLMA’s Innovation Hall. The new exhibit area highlighted companies that provide services and expertise to the private label industry that focus on innovation – including market research and consulting, software and technology, logistics, product development, testing and certification, packaging and promotion, store design and management. For a complete list of exhibitors at Innovation Hall see the PL Nov-Dec 2009 issue.
Attractions of the new hall included PLMA’s Video Center, an open multi-media studio set from which breaking news off the show floor, live commentary and interviews with industry experts were broadcast by internet video streaming in real time at www.plmalive.com. Private Label editor-in-chief Peter Berlinski presented a treasure hunt of innovation from companies such as US Nonwovens, Clement Pappas & Co., Ralston Foods, United Design, and Premier Brands.
The Idea Supermarket is a separate resource center to showcase what innovative things retailers around the globe are doing with products and packaging. There were more than 60 gondolas of products from the U.S., Canada, Europe, Asia, and South America to explore. Products were presented under the categories of eco/green, home, children, office supplies, new packaging, ethnic, value brands, international and premium beauty care and food. Some products featured included Delhaize’s value brand, Smart Option, Smart & Final’s new First Street packaging, Kroger’s new Mirra beauty line, Wallgreens’s Studio 35 beauty accessories and Lotte Mart from South Korea.
PLMA’s New Products Expo, located inside the Idea Supermarket, gave a glimpse into what’s new from exhibitors this year. The New Product Expo displays the latest ideas from exhibitors of food, health and beauty, kitchen and household and other major product categories.
2010 PLMA will be held November 14-16 at Chicago’s Rosemont Exhibition Center.
For more information contact PLMA at 212-972-3131 or visit www.plma.com.
