Playing The Growth In Private Labels (RAH, THS, PRGO)

According to a new report from international financial firm Rabobank, the global market share of private label food products is expected to double, from nearly 25% to 50%, by 2025. One lingering legacy of the Great Recession and the "new normal" has been the rush of consumers towards private label goods. As the global crisis has hit consumers hard, worldwide demand for store brands has grown. Researcher Nielsen reveals that 60% of consumers across 55 countries spanning the globe say they are buying more store brands as a result of the economic downturn. Analysts estimate that top "A" brands (think Procter & Gamble's PG Tide detergent) will retain their market shares. Smaller, "B" brands will face downward pressures as retailers stop carrying them in favor of using shelf space for their own private label brands. Stocks like Church & Dwight CHD and its stable of mid-priced brands, could suffer. On the positive side, private label specialists TreeHouse Foods THS, Ralcorp RAH and generic OTC drug manufacturer Perrigo PRGO could be big winners over the long haul. Investors looking to play the shift towards increasing consumer adoption of private label brands may want to give these three stocks a go.