Farming, Saturday, December 30,1978
II
WASHINGTON, D.C. - A
new tactic being adopted by
food retailers to attract and
hold customers is the in
troduction of “generic" or
“unbranded” products.
“Generic food products
generally cost less than
national and store brands,”
said Charles Handy, project
leader in the food economics
area of the U.S. Department
of Agriculture. “While they
often use lower grade
ingredients, the difference in
quality from the consumer’s
point view may not be
significant”
“Generic foods save
consumers money because
their ingredients are less
expensive and distributors
generally spend less money
to advertise, package and
label them. Consumers can
expect to save an average of
25 pea: cent over national
brands and about 15 per cent
over store brands.”
Handy recently beaded a
study of generic foods and
their acceptance by retailers
and the public.
“Studies by private in
dustry show prices of
generic foods averaged 39
per cent below national
brands in the Midwest and 30
per cent below in the East,”
said Handy. “The price
average was 20 per cent
below the store brand in the
Midwest and 19 per cent
below in the East.”
While generic foods have
spread rapidly, they still
aren’t available to many
shoppers. Some retailers
are competing with generics
by lowering prices on store
brands. Others are con
solidating their second and
third line store brands into a
new store label similar in
quality and price to
generics. In any case, the
consumer benefits _ from
reduced prices.
Usually, generic foods
come in plain packages and
Sniders Prince Lily, (pictures), a registered Guernsey cow is the new first
place fat and second place milk National Class Leader in the Senior 2 year old
class. She was bred J)y Bernard O. Snider of New Enterprise, and is now owned
by John D. Myers and Dr. Marvin Sanner-of Littlestown. "Lily" produced 21,350
pounds of milk and 1203 pounds,.of butterfat in 305 days twice daily milking
beginning at two years and nine months old. The sire of “Lily” is Lyrene Mat
Rose Prince and her dam is another 20,000-)-, Class Leader, Lerson Lawn
Jasons Lassie. "Lassie" is a 1974 Gold Star Dam and classified Excellent in
1975. This record was supervised by Pennsylvania State University, at
University Park.
Generic food products
• •
gaming
carry no brand names-, or
trademarks. Generally, the
labels are black and white
with bold lettering. They
often give only file basic
name for each product, such
as “sweet peas,” and
essential information about
ingredients, net contents and
the manufacturer or
distributor’s name. \
“They were first in
troduced in late 1977 in
Chicago and quickly spread
through the country,” said
Handy. “The number of
retailers carrying them
grew quickly from 20 in
early 1978 to 100 by Summer.
Meanwhile, the number of
items they carried rose from
about 10 to 100. Most stores
carry 25 to 50. Many
retailers say they don’t plan
to carry more than 45 or 50
items and they generally
carry only one size.”
Most retailers display all
generic products together in
thestore. That makes them
highly visible but also makes
it difficult for shoppers to
compare prices of generic
products with their name
and store brand coun
terparts. -
“The retailers we con
tacted were generally
satisfied with sales and
expected them to increase.”
Handy said retailers
agreed the standard
minimum specification for
generic foods was USDA
grade C, with some grade B
to fill in as needed. National
brands and top line store
brands, on the other hand,
use primarily grade A and
some grade B. One retailer
said grades for generic
products were 80 per cent
“C” and 20 per cent “B”
while their private label was
about 80 per cent grade A
and 20 per cent “B.”
All three grades are safe,
wholesome and nutritious
and are packed under the
same sanitary standards.
popularity
in
USDA grades B and C are
acceptable quality for
standard consumer "table
and cooking use. Grade C
products may have less
uniform size color, texture
and maturity.
“The wholesale price
difference between grade C
and grades B and A is a
major source of savings.
Grade C costs typically 10 to
35 per cent less than grade
A,” said Handy. “For
example, in June 1978, the
wholesale list price of whole
kernel com per case of
24/303 cans was Grade A,
$5.5045.75; grade B, $5.30-
$5.50 and grade C, $4.25-
$5.30. That’s a difference of
up to 26 per cent between
grades A and C and doesn’t
include discounts or
allowances "buyers often
negotiate.”
“While our research
showed that reduced or no
advertising of generics
contributed to savings, it’s
probably less than that due
to using less expensive
ingredients. National
brands are the most heavily
promoted. Retail prices of
national brands support not
only national advertising
campaigns but also the more
costly and complex sales
distribution networks and
new product development
activities of these firms.”
Store brands avoid many
of the costs of developing
and introducing products by
imitating established
national brands, Handy said.
While'advertising expenses
for store brands are much
October milk production up
HARRISBURG - Milk
production in Pennsylvania
during October totaled 655
million pounds or 305 million
quarts, about the same as
the previous month but one
less than for national
brands, store brand ad
vertising has increased in
recent years. This probably
contributed in part to the
narrowing price difference
between store and national
brands.
“Almost every retailer we
interviewed said cheaper -
packaging and labels helped
keep costs of generic foods
down,” said Handy. Many
said they used any suitable
package (can, jar orgiastic)
available,' depending ,on
what was the best buy.
“They used lighter weight
packages, some with slight
imperfections and more
utilitarian packages (no
spouts, protective coatings,
or pull tabs). One retailer
reported their generic
packaging costs were up to
15 per cent less than for their
private label or national
brand products.”
Typically, generic labels
are black an white, printed
on lighter non-varnished
paper and use no backlabels
on glass jars. - They
minimise design,
photography and
lithography expenses.
Plainer generic- labels,
however, represent only a
small source of savings. The
cost difference between
color and blade and white
labels is a one-time set up
cost of about $l5O for black
and white compared to $5OO
for color, said Handy.
Limiting sizes saves
money by reducing han
dling, ordering and
warehousing costs.
per cent more than October
1977, according to the
Pennsylvania drop
Reporting Service.
The number .of milk cows
in the commonwealth in
October was 700,000 head,
down 3,000 head from a year
ago. Production per cow
averaged 935 pounds or 435
quarts, up almost two per
cent from a year ago.
Butter production in
Pennsylvania totaled 2.745
million pounds in October, 12
per cent below a year ago.
Ice cream production in
October totaled 6.1 million
gallons, 14 per cent less than
in October 1977.
United States milk
production in October
amounted to 9.82 billion
pounds or 4.57 billion quarts,
down very slightly from a
year ago. Production per
cow averaged 906 pounds or
421 quarts, up seven pounds
or 3.3 quarts from a year
ago. The total number of
milk cows averaged 10.8
billion head, off one per cent
from last year.
United States butter
production in October
totaled 71.1 million pounds,
down 15 per cent from a year
ago. Ice cream production in
the nation was 64.7 million
gallons, a decrease of eight
per cent from a year ago.
mm so,.
O.C. RICE, INC.
Bigierville, PA
717-677-8135
YINGLING'S IMPLEMENT
RDI Gettysburg, PA
717-359-4848
N.H. FLICKER * SONS, INC.
Maxatawny
215-683-7252
STANLEY A. KLOPP, INC.
Bemville, PA
215-488-1500
MILLER EQUIPMENT
Bechtelsville, PA
215-845-2911
SHARTELSVILLE
FARM SERVICE
RDI, Hamburg, PA
>215-488-1025
H. OanielWenger, Prop.
ZIMMERMAN’S
FARMBERVICE
Bethel. PA
717-933-4114
PRAPFPRPCO.
ALLIS HOLLOW EQUIP.
RD 1,
Rome, PA
717-247-2601
CARL L PIERCE
RD2,
Columbia Cross Roads, PA
717-297-3513
WYNNE’S GARAGE
Canton, PA
717-673-8456
bucks co.
CJ. WONSIDLER BROS.
Trumbauersville Road
Quakertown, PA 18951
215-536-1935
PAUL HISTAND CO., INC.
397 North Main Street
Oojrlestown, PA
s£-348-9041
£HKTEB£fc
CHAS. J. McCOMSEY
4SONS
Hickory Hill, PA
215-932-2615
STOLTZFUS FARM SERVICE
Cochranville, PA
215-593-5280
M.S. YEARSLEY & SONS
West Chester, PA
215-696-2990
guMiatLefl.
DUNKLE & GRIEB
Mill Hall, PA
717-726-3115
COLUMBIA CO:
ORANGEVILLE
FARM EQUIPMENT
Orangeville, PA
717-683-5311
WILLIAM F. WELLIVER
Jerseytown, PA
717-437-2430
CUMBERLAND CO.
ERNEST SHOVER
FARM EQUIPMENT
19 West South St.
Carlisle, PA
717-249-2239
DAUPHIN CO.
SWEIGARD BROS.
RD3, Halifax.PA
717-896-3414
FRANKLIN CO.
CHAMBERSBURG
FARM SERVICE. INC.
975 S. Main St.
Chambersburg, PA
717-264-3533
MEYERS
IMPLEMENTS. INC
Grecncastle, PA
717-597-2176
LEBANON Cg.
HEISEY
FARM EQUIP!., INC.
RDI, Jonestown, PA
717-865-4526
UMBERGERSMILL
RD4, Lebanon (Fontana), PA
717-867-516 X
- Jt x
LOOK FOR
LANCASTER CO.
ROYH.BUCH, INC.
Ephrata, RD 2, PA
717-859-2441
GROFF, INC,
New Holland, PA
717-354-4191
A.L HERRABRO.
Quarryville, PA
717-786-3521
LANDIS BROS., INC.
Lancaster, PA
717-393-3906
LONGENECKER
FARM SUPPLY
Rheems, PA
717-367-3590
N.G. HERSHEYASON'
Manheim, PA
717-665-2271
LEHIGH CO.
C.J. WONSIDLER BROS.
Jet. Rt. 309 and 100
Pleasant Corners, PA
215-767-7611
LYCOMING CO.
RICE FARM SUPPLY, INC.
Jersey Shore, PA
717-398-1391
MONTGOMERY CO.
WENTZ FARM SUPPLIES
Route 29
Palm, PA
215-679-7164
NORTHAMPTON CO.
GEORGE V.SEIPLEt SON
Easton, PA
215-258-7146
MECKLEY'S LIMESTONE
PRODUCTS, INC.
Herndon, PA
717-758-3915
LL. ECKROTH
- FARM EQUIP., INC. Jv
New Ringgold, PA
717-943-2367
STANLEY'S FARM SERVICE
RD, Klingerstown, PA
717-648-2088
SNYDER CO.
ROYER’S FARM SERVICE
RDI, Winfield, PA
New Berlin-Middleburg Hwy.
717-837-3201
UQGACO.
CANYON IMPLEMENT, INC.
Mansfield, PA
717-724-2731
WAYNE CO.
MARSHALL MACHINERY
Honesdale, PA
717-729-7117
WYOMING CO.
ACE-JURISTA, INC.
Tunkhannock, PA
717-836-2610
AIRVILLE FARM SERVICE
Airville, PA
717-862-3358
GEORGE N. GROSS, INC.
RD 2, Dover, PA
717-292-1673
MAR EQUIPMENT, INC.
New Park, PA
717-993-2511
CARROLL CO.. MD
WERTZ GARAGE, INC.
4132 E. Main St.
' Linboro, MD
301-374-2672
CECIL CO. MD
AG INDUSTRIAL
EQUIPMENT CO.
Rising Sun, MD
301-658-5568
FREDERICK CO..WQ
KNOTT N. GEISBERT, INC
RD 2, Frederick, MD
301-662-3800
HARFORD CO..MD.
WALTER G. COALE, INC.
Churchville, MD 21028
' :V#f- 734 - ? 722
ENFIELD EQUIPMENT, INC.
Whiteford, MD21160
3QI-452-5252
301,-838-0480