This report examines sales of store-brand beverages--products that are sold under a retailer’s private label instead of national or regional brand name. The label may be the same as the retailer or may bear a separate brand name owned exclusively by that retailer. Store brand beverages are available through supermarkets, drug stores, and mass merchandisers.

The five beverage product categories with the highest store brand sales have been chooses for this report-- milk, juice, bottled water, coffee/tea, and carbonated beverages. These categories exemplify the current position of store brands, and their potential to become stronger players in the market. While some smaller product classes may see more store brand activity (for example, more retailers are launching store brand isotonic beverages), this categories chosen for this report are long-term store brand investments.

This report examines sales of store-brand beverages--products that are sold under a retailer’s private label instead of national or regional brand name. The label may be the same as the retailer or may bear a separate brand name owned exclusively by that retailer. Store brand beverages are available through supermarkets, drug stores, and mass merchandisers.

The five beverage product categories with the highest store brand sales have been chooses for this report-- milk, juice, bottled water, coffee/tea, and carbonated beverages. These categories exemplify the current position of store brands, and their potential to become stronger players in the market. While some smaller product classes may see more store brand activity (for example, more retailers are launching store brand isotonic beverages), this categories chosen for this report are long-term store brand investments.

Retailers take different approaches to their store brand lines. Some may offer only the basics in store brands, while others have highly developed programs. The relative success of store-brand drinks varies not only from segment to segment, therefore, but also from channel to channel and retailer to retailer.

Overall FDM sales of the five store-brand beverage segments included in this study were $9.5 billion in 2004, up 5% from 1999 sales (a decline of 8% in inflation-adjusted 2004 dollars). At the same time, overall FDM sales of all products in these segments totaled $39.0 billion, up 11% from 1999 (an inflation-adjusted decline of 2%). While consumers still rely on conventional supermarkets for their beverage purchases, they have also cast their nets wider to purchase beverages in convenience stores, restaurants, and other channels. This report examines the hypothesis that as consumers widen the array of channels through which they buy beverages, store-brand products sold through FDM channels will face increased competition

This report does not include alcoholic beverages (beer, wine, and spirits), isotonic beverages, functional beverages, or sports drinks.