I Did the Math: Name Brand vs. Generic

No one reading this article will be surprised to learn that generic store brands are cheaper than name brands. According to a Business Insider article from 2014, generic store brands cost about 25% less than their name brand counterparts. In our example list below, we saved 40% with generic store brands!!* Why exactly do generic store brands cost less? When creating a generic store brand, the grocery store chain doesn't need to spend money on advertising, market research, and product development, as all the heavy-lifting has already been done by someone else. The grocery store can then pass the savings along to the consumer with lower prices. Another way stores can save money with generic store brands is contracting out with name brand companies to "co-package" their goods. For example, a grocery chain could use existing expertise, facilities, and resources that place a name brand product into a generic store brand package. Is this how all generic store brands are made? No, and we're not likely to know how many name brand products masquerade as generic store brands because most of these deals and arrangements are not made public to obviously benefit name brand profits.

With this in mind, it's important to point out that while often similar in size, packaging, and ingredients, there is no guarantee buying a generic store brand will taste exactly like its name brand competitor. Determining what generic store brands to use comes down to trial and error, but there are some general rules of thumb you can follow. The fewer the ingredients, the more likely the generic store brand will taste similar to the name brand. There are exceptions to this rule and a personal one of mine is powdered sugar. I don't like the generic store brand taste and prefer the name brand; but, when it comes to most dairy products, I buy the generic store brand and notice very little difference in both taste, quality, and performance when cooking. You are going to have to buy the generic brand to determine if they meet up with your personal standards and taste. Places where you are most likely to spot a difference in taste is with more processed foods such as: cake mixes, cereals, chocolate chips, spaghetti sauce and salsas, dry mixes such as stuffings and pasta, soups, condiments and salad dressings, cookies, and crackers. Spices, dairy, canned and frozen fruits/vegetables, basic pantry staples (sugar, flour, baking soda, salt, etc), coffee, and tea may align more closely with name brand tastes because they have fewer ingredients and not much room to deviate from the original product.

Next time you're at the store, I encourage you to set aside your "brand loyalty" in favor of the generic store brand and see if this product is compatible with your taste buds and wallet! Now simmer down and get shopping! xo

Name Brand Price	PRODUCT	Generic Store Brand Price
$6.79	16oz butter (4 sticks)	$4.29
$4.49	100% whole wheat bread	$2.29
$3.79	10ct flour tortillas	$2.19
$1.99	16oz spaghetti noodles	$1.33
$3.49	24oz marinara	$1.99
$2.79	12ct taco shells	$1.67
$3.49	16oz salsa	$1.69
$1.79	15oz canned black beans	$0.89
$1.49	5.3oz cup greek yogurt	$0.89
$4.29	32oz powdered sugar	$2.69
$4.39	10oz bag chocolate chips	$2.69
$7.49	2oz pure vanilla extract	$5.99
$4.59	52oz orange juice	$3.79
$5.99	18oz box of cereal	$2.29
$3.69	8ct breakfast bars	$2.29
$4.39	24oz sour cream	$2.69
$4.79	8oz shredded cheddar cheese	$2.49
$4.19	8oz bag potato chips	$2.19
$8.99	12pk cola	$4.49
$5.99	24 bottles of water	$3.99
$7.99	28.2oz frozen pizza	$4.49
$3.29 (12.6oz)	12.6/12oz bag frozen broccoli	$1.79 (12oz)
$1.29	10.75oz can of soup	$0.89
$7.49(40oz)	40/48oz bottle vegetable oil	$5.99(48oz)
TOTAL: $108.96	DIFFERENCE/SAVINGS: $43.07	TOTAL: $65.98

*Prices were shopped 2/6/24 from Kroger in Colorado.