New generation of generics

September 13, 2011, 7:03 pm Damien Hansen Today Tonight

When generic products first hit supermarket shelves they were cheap, and they looked it, but their soaring popularity means they're being reinvented.

Consumer

Supermarkets are stocking their shelves with hundreds of new generics.

From cleaning and personal grooming products, to kitchen utensils, pest control and even budgie seeds, the renaissance of the no frills generic alternative is prompting an expansion of the product range like we've never seen before.

If you're looking for more incentives to save Coles, Woolies and ALDI are lifting the lid on their private collections, and giving a sneak peak at their latest generic alternatives.

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Libby Hay from ALDI says the chain is excited about the latest addition to their range, which includes shower gel, squishy yoghurt, and pure vita canola spread, which has been developed to specifically meet the Heart Foundation criteria.

Mum Kate Filmer is a generic junkie.

“I think that the Nutri-grain for instance has more of a honey flavour that the generic brand of it. But the kids still love it in my house, they don't know any different.”

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She’s part of a new breed of generic converts who started searching for a cheaper fix during the GFC, and have never looked back.

According to Simon Brady, head of Coles brand marketing, you'll soon be able to by Coles’ own brand of batteries, and even thicker, better baby wipes.

“We've added about a thousand products to the range in the last twelve months” Brady said.

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Even when they were in dull plain packaging, and had a dubious reputation, generics were a hit because they were cheap.

Now supermarkets are focused on sweetening the deal on their so-called home brands, and they're all upping the ante, while we're lapping it up.

Katrina Diamonon is a consumer market analyst with Datamonitor. “As the quality of private label improves, consumers attitudes are changing. In fact 49 per cent of Australians told Datamonitor that they believe private label food and drinks are credible alternatives to famous brands.”

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“Today private labels represent about fifteen per cent of total grocery spend in Australia, and that is expected to gather pace over the next few years,” Diamonon said.

When we surveyed 25 everyday items from Woolworths’ private label, against their national brand equivalent, we made a huge saving just by sticking with generic brands.

“I think it’s an absolute fallacy to say the cheaper products equals cheaper quality, our products are a fantastic pricem but at the same time the quality of the product is going to be equal to, if not better than, the household brands,” concluded Hay.

This reporter is on Twitter at @DamienHansen7


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