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The Private Label Manufacturers Association (PLMA) has released a new study saying, not surprisingly, that shoppers can save roughly 30 percent on the average supermarket bill by purchasing own label products rather than national brands.

The 43-item market basket examined by PLMA included cereal, soda, pasta, orange juice and cookies, facial and bathroom tissue, cold and flu medications, dog food and aspirin. The top five products in the study found to have the largest gaps in pricing by percentage were aspirin, sinus spray, soda, saltine crackers and body lotion.

National brands cost a total of $147.21, according to the study, and equivalent private label items cost a total of $100.82.

“Prices may vary from market to market, but the savings that consumers will achieve will follow the same pattern across the country,” said PLMA President Brian Sharoff.

KC's View:
Not be overly cynical here, but it seems likely that if the same study were conducted, say, by the Grocery Manufacturers Association (GMA), the price differential might be a little less dramatic.

Still, the trend seems clear, both from this story and reports like the one we had yesterday about Walmart upgrading its Great Value line. Private label is gaining momentum…and one wonders to what extent retailers are going use this trend to build their own margins and heighten their leverage over manufacturers.