We frequently reach for certain labels while shopping simply because the brand name on the package — and the familiarity that accompanies it — has been drilled into us through persuasive advertising.
We pick up Bounty paper towels because they’re “the quicker picker-upper” and Frosted Flakes because “they’re gr-r-reat.”
Yet on the same shelves you’ll often spot a comparable store-brand alternative that carries a lower price — sometimes substantially lower.
So which is preferable — the name brand or the generic? Let’s explore.
Are store brands truly as good as name brands?
Not always. Frequently, store brands mimic the same formulation as national brands but can retail for less because they use lower-cost ingredients or materials in production. Other times, a store brand is a knockoff made by a different manufacturer attempting to emulate the national brand — and they can come impressively close.
There are also cases where it’s literally the identical product with a different label applied. In those situations, the store brand is just as effective as the national brand.
Even when the store brand isn’t exactly equal in technical quality, you may find it sufficiently close for your needs. Much of the evaluation is subjective.
Expect some trial and error, and you might end up back at the premium paper towels after testing the generic because you determine that Bounty really does pick up more and faster.
Why store brands cost less (and how they keep prices down)
Often, store brands cut costs by using lower-grade components or materials. Sometimes they collaborate with existing manufacturers who produce the item and simply apply the retailer’s label, avoiding the expense of their own production facilities.
This enables retailers to practice price segmentation. The idea is that certain shoppers are brand loyal and will pay the premium regardless. Generally, stores can extract higher margins from these customers — even if they spend more on quality ingredients and larger advertising budgets.
Then there are shoppers who will only buy a product if it’s priced affordably. That’s the market the store-brand targets. By offering similar items at distinct price tiers, retailers capture a wider pool of buyers. At scale, this approach can increase overall profit even if the store-brand yields a lower per-unit margin.
Other ways to cut costs on groceries and household supplies
There are additional tactics to stretch your food budget beyond choosing store-brand items. An app called Upside can help you earn real cash back when you shop at grocery stores, dine out, or fill up at the pump. Upside can add roughly $290 per year in cash-back rewards across thousands of restaurants and grocery locations, easing routine expenses.
If you purchase groceries or household goods online, Capital One Shopping can identify if you’re overpaying. Install it in your browser for free, and before you complete checkout it scans other retailers to see if the same item is available for less.
Store-brand products that almost always win
To get a sense of which store-brand items outperform their national counterparts, we polled Savinly Readers. One reader said she’d always favored JIF creamy peanut butter, but changed her mind after trying her store’s organic creamy store-brand for under $2. She called it “good, if not better.”
Her view makes sense. Peanut butter is among foods covered by a “Standard of Identity” (SOI). That means before it hits shelves it must adhere to certain FDA standards. Peanut butter specifically must be composed of at least 90% peanuts with no more than 55% fat to be sold in the U.S., making most brands fairly consistent.
When a food item is regulated by an SOI, distinguishing name brand from store brand becomes more difficult. Other items with SOIs include (though this isn’t exhaustive):
- Milk and cheese
- Many bread products
- Milk chocolate
- Canned and frozen vegetables
- Noodles and macaroni
- Ice cream and sherbet
It’s not limited to food. For instance, a Savinly Reader, Jobelle Collie, said she prefers Dove bar soap, Olay moisturizer and Palmolive green dish soap — yet buys generic trash bags and office supplies. That’s sensible: a No. 2 pencil is still a No. 2 pencil even without “BIC” on the side.
One standout store-brand item is Kirkland batteries. In 2016 Duracell acknowledged producing this Costco-branded battery, and numerous consumer tests since have shown Kirkland performs on par with the national brand. Whether the materials are identical hasn’t been officially verified, but matching performance makes that distinction less important.
Brand-name items that are often worth splurging on
Jobelle wasn’t alone. Among community members, the most commonly defended splurge was beauty products. Occasionally a store-brand variant will work just as well and share the same ingredients, but broadly speaking this is an area where paying for the brand can be wise.
Unlike disposable items, products applied to your skin can be absorbed into the bloodstream. Many consumers feel safer opting for higher-quality formulations in these cases. This is also why you should exercise caution when buying beauty goods from online-only sellers, where oversight may be looser than for items sold on a physical store shelf.
Other choices to stick with brand name are personal. A picky eater might distinguish cookies made with Great Value flour from those made with Gold Medal. Store-brand cola may be fine to some, while others will only accept Coke.
Regional taste preferences play a role too. Ketchup illustrates this well. Although it technically has an FDA SOI, offer a Pittsburgh local the store-brand (or worse — Hunt’s), and you’ll get a reaction. In the Pittsburgh area, Heinz is king, and the regional palate notices the difference.
How to decide between store brand and name brand
Some products — like Kirkland batteries or staples such as milk or salt — rarely justify buying the national brand.
For many other items, make choices based on your budget and personal preferences. If name-brand shampoo matters to you, you might economize on plastic baggies. If you prefer premium ketchup, you could still buy store-brand tomato sauce and jazz it up with herbs and spices when you cook, since you aren’t as particular about spaghetti night.
Also factor in actual price gaps and coupons. At one Publix in St. Petersburg, Florida, the difference between store-brand and JIF was only $0.07 during a comparison. At Walmart the gap was $0.92.
One retailer’s store brand could save you far more than another’s. If you have a coupon for $0.50 off JIF, that could make it cheaper than the Publix store brand — though not cheaper than Walmart’s.
Store brand vs. brand name: Smart shopping isn’t about labels
Ultimately, choosing store-brand or name-brand items doesn’t make you a better person or a savvier shopper. Much of it comes down to taste. While some products like Kirkland batteries may be functionally identical to the national brand, often trading down does mean accepting a modest quality trade-off.
It’s about experimenting to learn where that trade-off is acceptable for you and your household given your budget.
Pittsburgh-based writer Brynn Carter is the founder of the Femme Frugality blog and author of “The Feminist Financial Handbook.” She contributes regularly to Savinly. Nicole Dow and JoEllen Schilke also provided input.
