Brand vs Store Brand

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 Big-brand consumer products companies are starting to win the battle for shoppers who traded down to store brands by cutting prices, rolling out both lower- and higher-priced new products, and pumping up promotions. Even with new Brand name products many are still higher priced than store brands that are the same product or very similar. Although some name brand products

Procter & Gamble Co., Colgate-Palmolive Co. and Unilever NV all showed strong sales growth in Thursday's quarterly earnings report, although P&G's results were hurt by charges including from the U.S. health-care overhaul, and Colgate took a hit from the currency devaluation in Venezuela. While consumers are still minding their budgets, the rising sales are an encouraging, if tentative, sign of economic rebound after more than a year of shopper cutbacks.


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"These are companies that sell everyday household products," said Jack Russo of Edward Jones, who covers P&G and Colgate. "Procter has been introducing products that have more of a value equation. I wouldn't say that consumers are jumping back in on the premium products."

The three companies' sales surged overall, particularly in emerging markets and after price cuts meant to lure consumers back from cheaper private label and store brands.

"We are doing what we have to do price-wise to stay price-competitive," Bob McDonald, P&G chairman and CEO, told investors on a conference call.

Colgate shares fell 20 cents to $84.80 Thursday, while P&G was off 97 cents, or 1.5 percent, at $62.20.

P&G is trying to combine brand strength with lower-priced alternatives while also grabbing shoppers' attention with upgraded products and marketing. The maker of Tide detergent and Pampers diapers says revenue rose 7 percent, to $19.2 billion, while profit dipped 1 percent to $2.59 billion, or 83 cents per share, with a 5-cents-a-share charge for costs from health-care changes in its third fiscal quarter.

Colgate-Palmolive, maker of Colgate toothpaste, Palmolive dishwashing liquid and Ajax cleanser, saw revenue rise more than 9 percent, to $3.83 billion. But first-quarter earnings fell 30 percent, to $357 million, or 69 cents per share, after the company took a charge for the currency changes in Venezuela, a key South American market.

Unilever NV, the maker of Lipton tea, Dove soap and Ben & Jerry's ice cream, reported a 33 percent jump in first-quarter profit and a revenue increase of 6.7 percent.

"In cutting prices, Unilever continues to up the pressure on rivals" analyst Keith Bowman of Hargreaves Lansdown said in an earnings note. He described the company's strategy as "intense advertising combined with successful product innovation and stringent cost control."

Unilever and P&G had to cut prices in the quarter because people are more apt to trade down to off-brand home products, said David Kolpak, managing director at Victory Capital Management in Cleveland.

"Consumers are just flat-out a lot more loyal to branded products when it comes to stuff you use for your appearance and your health than when it comes to mopping your floor or cleaning your countertops," he said.

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Tip # 2: Spend Less, Get More – 5 Ways to Save Money at the Grocery Store

The five ways takes you very little time and can save you hundreds of dollars on your grocery bill each year.

It’s no secret that groceries take a huge chunk out of the family budget. The more people in your house, the more you spend each week at the grocery store. Saving money on groceries is one way you can actively affect the amount of money you spend every week, month and year. The good news is that you don’t have to make huge sacrifices to find huge savings. In fact, the following five simple steps take you very little time and can save you hundreds of dollars on your grocery bill each year:

1. Take the time to look at coupons, ANY coupons: store coupons, manufacturers’ coupons, local coupons, coupons from magazines and coupons that you print off the internet. If at all possible, use them. It may not be the brand you normally buy but many off brands come from the same place as the more well known brands. Check to see what is on sale - and I mean really on sale. For instance, some grocers place some offers at “10 items for some dollar amount.” Well, you have to ask yourself: is it really a bargain? Bring a calculator and do the math; if it IS a bargain, snatch it up. If not, walk on by.
2. Stick to your lists. DO NOT BUY IF IT IS NOT ON YOUR LISTS. You took the time to prepare your menu for the week or month. (See my book Save Your Money, Save Your Family coming soon) and made a lists of food items that you need. Stick to it.
3. Eat before you go. Even if it is a peanut butter and jelly sandwich and a glass of milk. This will keep you from impulse buying because you are hungry.
4. Don’t buy non food items at a grocery store. Toiletries, laundry, paper products, make up even spices, bread, wine are to be purchased from a discount store, 99 cent store or day old bread store.
5. Always remember: the bigger companies that can afford to have their products at eye level pay to be there. So this convenience costs you, the consumer, more money. If you don’t believe me, try this simple experiment the next time you go shopping: look up above eye level and look down at the knee level, these companies are smaller companies but have as good as or better food products for much cheaper prices.