The document discusses private label trends in the U.S. It finds that private label dollar share is increasing more due to rising food prices than consumers switching from brands. Key insights include: private label sales growth is outpacing unit growth; the top private label categories are dairy, eggs, and packaged meat; organic private label sales are growing despite economic challenges; and retailers like Walmart are expanding their exclusive private label brands across many product categories to increase market share.

1. Private Label in the U.S.

3. Private Label Growth And The U.S. Economy

4. 5 Years of Private Label Share Trends Source: Nielsen Strategic Planner, Total U.S. Food/Drug/Mass Excluding Wal-Mart Private Label Share of Total Store Dollars for Each 4-Week Period The increase in Private Label dollar share is driven more by commodity pricing than a shift away from brands. Private label UNIT share is relatively flat. Starting Aug-07

5. Private Label Sales Vs. Year Ago Source: Nielsen Strategic Planner, Total U.S. Food/Drug/Mass Excluding Wal-Mart Private Label Share of Total Store Dollars for Each 4-Week Period Private Label UNIT sales remain relatively flat vs. year ago.

8. Private Label Share Across Grocery Markets Source: Nielsen Strategic Planner, Grocery Channel, 52 Weeks Ending 3/22/08 San Antonio has the highest private label for any U.S. market.

9. Key Private Label Categories

19. Health & Wellness

20. 5 Years of Healthy Eating Trends – Organic Foods Source:Nielsen LabelTrends, Total U.S. Grocery/Drug/Mass Excluding Wal-Mart Organic sales continue to grow despite the struggling economy 4-Week Period End Dates

21. 5 Years of Healthy Eating Trends – Natural Foods Source:Nielsen LabelTrends, Total U.S. Grocery/Drug/Mass Excluding Wal-Mart Natural foods have grown at a slower rate than organics, but generate nearly five times the dollar sales. 4-Week Period End Dates

27. Private Label Execution and Opportunities

29. Categories with Highest PL Share at Wal-Mart WM Private Label Share of Dollar Sales Category PL Milk $1,773 Million 71% PL Sugar/Sugar Substitutes $280 Million 62% PL Unprep Meat/Seafood - Frzn $501 Million 51% PL Cot Chs/Sour Crm/Topping $151 Million 41% PL Dessert/Fruit/Tops - Frzn $75 Million 40% PL Fruit - Canned $123 Million 39% PL Vegetables & Grains - Dry $66 Million 38% PL Shortening/Oil $177 Million 36% PL Cheese $725 Million 36% PL Juices/Drinks-Frzn $40 Million 36% Source:Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 Wal-Mart PL share is 15.3% across all Nielsen categories.

30. Categories Where Wal-Mart Private Label Out-Performs Grocery Channel Share of Category Grocery Share Wal-Mart Channel Gap PL Soft Drinks - Non Carb 28.6% 8.0% +21 Pts. PL Vitamins 35.2% 16.1% +19 Pts. PL Candles/Incense & Acces 22.7% 3.9% +19 Pts. PL Sugar/Sugar Substitutes 62.2% 43.8% +18 Pts. PL Snacks/Spreads/Dip-Dairy 30.9% 14.2% +17 Pts. PL Lawn And Garden 22.2% 9.6% +13 Pts. PL Bottled Water 33.7% 21.2% +13 Pts. PL Seafood-Canned 22.3% 10.4% +12 Pts. PL Disposable Diapers 27.9% 16.0% +12 Pts. PL Pkg'd Milks & Modifiers 28.4% 16.9% +12 Pts. Source:Nielsen Wal-Mart Channel, 52 Weeks Ending 12/29/07 Wal-Mart PL share can be a benchmark for other retailers.

32. Retailers With a Private Label Focus ?

38. Private Label as an Exclusive Destination

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