STORE BRANDS l PAPER PRODUCTS
THE PAPER CHASE ECO-FRIENDLY OPTIONS AND VALUE PACKS ARE DRIVING SALES IN PAPER PRODUCTS By Nora Caley
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ears ago, experts believed consumers mostly wanted paper products that were durable. It mattered how much food a plate could take, or the size of the coffee spill a paper towel could hold. Times have changed, and consumers are looking for paper products that score high in sustainability, design and value. Retailers have responded by expanding their sets, including boosting their private label offerings in a wide range of paper products. Take paper towels. According to the Private Label Manufacturers Association and Nielsen, for the 53 weeks ending December 28, sales of all brands of paper towels totaled $5.4 billion in all outlets combined (food, drug, mass, Walmart, club, dollar and military stores) — an increase of 4.2% compared to the same period a year ago. Sales of private label paper towels, which accounted for one third of those sales, increased 7.7% to $1.8 billion. “The state of private label paper is as strong as ever, and getting stronger,” said Jeff Leaf, director of U.S. sales for Edgewood, N.Y.-based U.S. Alliance Paper. “Retailers 42
Store Brands
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across all channels continue to support their private label paper programs as a key destination category in their stores.” One way retailers are driving sales in private label paper is by offering tiers of products. Among the household and tissue products that U.S. Alliance manufactures, the tiers are value, mainstream, ultra and green. Retailers that allocate enough shelf space to merchandise the wide selection of features and price levels can attract consumers who are looking for more than just less expensive paper towels or napkins. “The growth of the category is being driven inherently by the consumer who is more educated about private brands now more than ever, thus making decisions at the shelf about value and quality much more apparent,” Leaf said. “Today private brand paper offers the same quality and choices as the national brands, making it much easier for the consumer to see the built-in value every day.” Retailers should keep up with other trends in the marketplace, and become fast followers, which means to react quickly and offer the same in a private brand. One specific trend,