Study: Private label brands drive growth in DomRep, gain in Puerto Rico
Private label brands are reshaping retail dynamics in Puerto Rico and the Dominican Republic, according to a new analysis by NielsenIQ that examined sales performance in the so-called Modern Channel — supermarkets and organized retail outlets — in the Caribbean.
While chain supermarkets in the Dominican Republic posted a 10.2% increase in value, Puerto Rico’s segment recorded a 2.2% decline, reflecting different consumer behavior and market development in each location.
Despite the slowdown in Puerto Rico’s Modern Channel, private label brands outperformed the overall market and leading manufacturers with a 4.6% increase in value sales.
In the Dominican Republic, private label growth was even stronger, rising 31.2% — the highest growth among all brand categories and outpacing the top five traditional brand manufacturers, which gained 17%.
“Consumers in the region increasingly value the accessibility and quality of private label brands,” the study found. It also noted that “availability and variety are key factors when choosing traditional brands.”
The report identified several strategies behind the success of private labels, including increased product coding, or Total Distribution Points (TDPs), which reflect assortment depth. Private labels saw an 8.8% gain in TDPs in Puerto Rico and 8.7% in the Dominican Republic during the reporting period.
Strategic price and size management also contributed, helping retailers serve a wider range of consumer segments.
Even with those gains, the study noted that 59% of Latin American consumers still prefer familiar brands, underscoring the need for a balanced brand portfolio.
