19. The development of private brands
National and regional brands of processed and packaged foods dominated the market before World War II. Following the war, expansion into the suburbs led to the expansion of supermarkets in the new neighborhoods. Many introduced private brands, available only within stores of their chain. They eventually led the larger retailers to also become processors and packagers of foods. By the end of the 20th century, the growth of private brands exceeded that of the better known, and often more expensive, national brands. Some, such as Eight O’clock Coffee, survived the demise of the chain which created them. A&P created Eight O’clock Coffee, and though the chain is gone the brand is still sold in other stores.
By the 1970s, large national brand companies, such as Campbell’s Soup, used extra plant capacity to manufacture private brands that competed directly with their own label. Other companies manufactured private brands for numerous chains, under different labels. Still others, such as retail giant Kroger, owned plants where foods sold under their private brands were processed and packaged. Kroger created several private food brands in the late 20th century and continues to do so today, many of which compete with higher-priced luxury brands, rather than simply offering a lower-priced alternative to national brands.