Famous brands vs. store brands: how to save on groceries in the US

Store-bought products may not have the flashy packaging and promotional appeal of your favorite cereal, water, and snacks. However, you can save a ton of money on monthly food expenses if you shop for branded products in the store rather than big name brands. CNET.

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It turns out that one of the surest ways to save money at the supermarket is to give up some of the brand loyalty.

If you're wondering exactly how much you can save by grocery shopping, the final numbers are pretty shocking. On average, this is about 40% of the total savings in various product categories.

Who makes branded products?

First, it is well documented that most major food manufacturers label their products under several different brands, including generic or store brands. According to recent statistics from the Private Label Manufacturers Association, one in five store branded products are produced by a private label. The manufacturers want you to choose the brand price, not the store price. That's why advertising exists; make you believe that brand name products are better in some way, when the truth is that identical products often go down parallel conveyor belts, getting two different labels at the end of the production line. That is, the difference is only in the wrapper, and not in the content.

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This doesn't necessarily mean that all branded, O-shaped, toasted oats are actually General Mills Cheerios cereal in disguise, but it goes without saying that for many store-bought products, quality or taste is potentially important and equal to their name - double. And given the opportunity to save money, they are definitely worth a try. While some branded products are unlikely to have a store-bought equivalent (for example, is anyone really looking for off-brand Doritos Cool Ranch?), items such as canned beans or rice seem to be particularly safe segments in the store-brand category.

Here's how much you can save by buying a store brand: Wegmans vs. Stop&Shop

Discount grocery stores like Trader Joe's and Aldi keep prices low because they sell mostly their own brands. Wegmans is an interesting example as it has its own brand loyalty, not just as a grocery chain, but also to its Wegmans brand.

Stop & Shop is generally perceived as a mid-range grocery store chain with a good selection and good quality, not considered expensive, but is also disrespected for its overall brand, which is simply called SB or Store Brand.

However, despite popular belief, both Wegmans and Stop & Shop are relatively unanimous in prices for both national and branded goods. Store brand prices differed within 20 cents of each other in the full listing at both stores.

Screenshot: Www.cnet.com

Screenshot: Www.cnet.com

Buying a store brand name can mean huge savings.

For both Wegmans and Stop & Shop, there is no denying the huge savings when buying generic products. The original shopping list of 20 staples cost about $125 at both locations, and the in-store version of the list cost just under $75. This is an average of 40% savings across the list.

Of course, this is not a complete shopping list, as some product categories have been left out on purpose. Some of these items, such as condiments, can be bought from time to time instead of weekly. Be that as it may, the math is clear: store-bought products can save you a lot of money when shopping at grocery stores.

How to value established brands versus store brands

Using shopping list templates available online, a list of 20 common essential ingredients from the pantry, bakery, dairy, deli, and freezer was created at various prices. Products such as whole fruits and vegetables and cold cuts are not usually labeled (or rarely disclosed) and were excluded for the purposes of this study. Prices for each of the selected items were compared between national, well-known brands and a store brand of the same item of approximately the same size using Instacart. If there is a discrepancy in size, it was marked with an asterisk, but not adjusted in price accordingly, as the intent was to reflect the exact amount of what you would pay for the cost of a product listing of either a well-known brand or a store brand.

In most cases, the store-brand product came in the larger two-piece size, which meant even more savings when you factor in its relative cost. For example, at Wegmans, Bonne Maman strawberry jams cost $6,39 for 13 ounces, while Wegmans brand strawberry jams cost just $4,09 for a full 18 ounces, almost 50% more product. The savings on your grocery bill is $2,30, but if you increase the price of Bonne Maman to match the same number of branded products, its price becomes $8,85, which is a savings of $4,76, or more than 50%.

Where are the biggest savings on branded goods?

At both Wegmans and Stop & Shop, the higher the cost of a branded item, the more you can usually save, not only in pure dollars and cents, but also as percentage savings between brand and store brand. Branded items over $5 tended to result in the highest percentage discounts, while more expensive items such as olive oil, coffee, and spaghetti sauce were sold at 50% or more off their regular or branded counterparts.

Less expensive items, especially those that cost less than $2, can save only 10% to 30% overall. For example, roughly 17 ounces of Colavita Extra virgin olive oil costs $12,79 at the Stop & Shop, while an equivalent store-brand olive oil costs just $5,79, more than 55% of the price of a well-known brand.

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On the other hand, 16 ounces of Goya chickpeas cost only $1,19. Since the store brand costs only 10 cents less, the savings will be only 8%. However, olive oil will most likely be affected by quality and nuances of flavor, so while the savings can be much larger, it may be a matter of personal preference whether the savings are worth it. Chickpeas tend to be less tested for taste and texture.

Does every grocery store have its own brand name?

While store brands are on the rise, not every grocery store has its own brand and many simply sell no-name or generic brands in addition to established brand products. Store brands include those that carry the store's name on their own label, such as Wegmans, Publix, Kroger, and others that have a separate label for branded items, such as Stop & Shop's SB, Walmart's Great Value, and Costco's Kirkland Signature. Either way, it's worth checking out your local grocer to see where you can save big on your grocery bill.

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