Saving with store brands Many shoppers turn to more affordable alternative in an effort to cut spending

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Lucky Charms or Magic Stars? Oreos or chocolate sandwich cremes? Pop Tarts or toaster pastries?

When the price difference is measured in quarters or dollars rather than pennies or nickels, the choice is easy for many.

“I never used to seek out store brands, but I can save more than a dollar each on bread, cereal, milk. Those are things I buy every week,” said Paulette Evans, a Hampden resident who was shopping this week at Shaw’s on Main Street in Bangor. “And I care about what I buy, but milk is milk.”

As budgets get tighter and food gets more expensive, shoppers in Maine and across the country are increasingly switching to store brands – even upper-income consumers who may not have been inclined to give them a try before.

Judy Chong, a spokeswoman for Shaw’s Supermarkets, which operates grocery stores all over New England, said she couldn’t reveal specific numbers for competitive reasons but that, anecdotally, there is indeed a trend.

“In general terms, we started seeing our shoppers looking for more value when the gas prices started to rise,” Chong said in a telephone interview. “Many people are willing to buy what we call private-label products, and they are discovering that they are just as good.”

Shaw’s carries its own label on many items but also is responsible for Shopper’s Value and Wild Harvest products. Wild Harvest products, typically natural and organic options, are priced approximately 15 percent lower than their brand-name equivalents, according to Chong.

“The advantage of establishing that connection with our customers is that you can only buy Shaw’s or Wild Harvest at these locations,” Chong said.

Evans said she, too, has been considering Wild Harvest products more seriously.

“If the prices are reasonable, I’ll consider natural or organic with some things, but most items are still out of my price range,” she said, laughing.

Hannaford, another popular and prevalent grocery chain in Maine, is experiencing the same phenomenon with store-brand items.

“There are a couple of trends that are pretty distinct,” Hannaford spokesman Michael Norton said. “Our Hannaford brand has always been strong and it’s continuing to do well, but one that’s really taking off is our Nature’s Place line. People clearly want more choices of organic and natural products, but they still want the value.”

The nation’s biggest grocery-sellers, Wal-Mart, Kroger, Supervalu Inc. and Safeway Inc., also report that sales of their own brands are jumping, as customers can’t stop regularly buying food and household items but need to reduce spending.

The stores have been pushing their own brands in areas such as dairy products, meats and breads where prices have risen especially fast, and also are tapping into increased demand for organic and natural foods.

“Store brands have come a long way,” said Tod Marks, a senior editor at Consumer Reports, which has tested store brands against national brands for quality and customer response. “Over the years, retailers realized that store brands were not just something to be floated out during hard times [and said], ‘This is a signature product of ours. We want to be known for this.'”

The Food Marketing Institute, an industry trade group, found this year that the number of shoppers who say they are buying more store-brand items has been steadily rising, now up to some 60 percent. Candace Corlett, president of the consulting firm WSL Strategic Retail, says her group has found that even upper-income shoppers are more willing to buy store brands, which have traditionally been seen as appealing most to people on limited budgets.

That shift comes as the chains are offering more store-brand products of better quality.

Gone, for the most part, are the gray, no-frills cans with nondescript labels such as “peas,” packaging that evoked cheap, bland taste. Many now sport colorful labels with names such as Kroger’s “Private Selection” and “Naturally Preferred” that don’t shout “store brand!”

Trying to capitalize on what Safeway CEO Steve Burd recently called “an extraordinary shift,” stores are offering more new products and increasing their marketing. Not surprisingly, Hannaford has increased its marketing efforts, particularly with regards to Nature’s Place, and Shaw’s has been actively promoting its own labels in fliers and other advertisements.

At Shaw’s on Main Street in Bangor, a prominently displayed sign this week proclaimed, “We’ve slashed our prices on Shaw’s brand milk.” At Hannaford on Broadway, two giant signs at the store entrance advertise Hannaford brand toilet paper and 5-pound bags of sugar.

The price differences are stark on some items. For instance, at Hannaford this week, a gallon of store brand milk is $3.61, while Oakhurst was running at $4.01. For Nature’s Place wheat bread, Hannaford charged $2.29 per loaf while an equivalent from Pepperidge Farm was $3.89.

Norton said it’s difficult to quantify whether Hannaford makes more profits from selling store brands over name brands. In general, though, stores reap better profits by selling their own brands and also use them to build customer loyalty.

“We’re happy with the trends we’re seeing,” Norton said. “It’s a little early to say there is a massive shift, but there certainly is more trial. There has been a lot of discussion about the effects of the economy, but price and value never go out of style.”

The Associated Press contributed to this story.

erussell@bangordailynews.net

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Because of the increased cost of living, many shoppers are choosing store brands, such as these canned tomato products at Shaw’s on Main Street in Bangor, over name brands.

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