24% of Food and Beverage Dollars Now Go to Private Label. Which of Your SKUs Will Survive?
Private label food and beverage products now hold a 24% value share, with store brands setting a unit share record of 23.8% in early 2026. BJ's Wholesale Club plans to cut 20% of its SKUs, while Kroger is expanding its private label brand, SmartWay, to 1,000 items. US retail food and beverage sales grew 2.2% in the first half of 2026, driven by price increases, with volume remaining flat. Circana expects 2-3% growth through 2027, down from nearly 7% between 2019 and 2024. According to PLMA, US p
How this was made
The 30-second read
Why it matters
Retailers are reshaping assortments, creating both risks and opportunities for CPG suppliers and investors.
Market read
Private‑label expansion and SKU rationalization could shift market share from national brands to store brands, affecting CPG stocks.
What to watch
Potential supply‑chain constraints and consumer perception of quality in expanded private‑label lines.
Background
The article examines the rise of private‑label products in U.S. grocery aisles, highlighting recent retailer actions.
Ticker impact
BJ's announced it will cut about 20% of its SKUs, reducing items from ~7,500 to 6,000‑6,500.
Modest downside pressure as investors assess SKU reduction costs.
SKU cuts signal cost discipline but also loss of shelf presence; market reaction likely muted.
Kroger disclosed it will expand its SmartWay private‑label line from ~130 items to about 1,000.
Slight upside as investors view private‑label expansion as growth driver.
Large increase in private‑label SKUs suggests higher margin contribution and market share gains.
Market effects
Accelerates private‑label growth, pressuring national brands and reshaping CPG supplier strategies.
U.S. grocery sector sees continued rationalization and private‑label expansion.
Signals broader shift toward store brands that may affect global CPG manufacturers.
Counterpoint
SKU cuts could erode brand loyalty and open space for competitors, outweighing cost benefits.
Key entities
- CompanyBJ's Wholesale Club
Retail warehouse club cutting SKUs.
- CompanyKroger
Grocery chain expanding private‑label SmartWay.
