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FLEXO Magazine : February 2012
label and store brands on the shelf. Many stores have cut back on national brands to make room for more private label goods. There are also stores dedicated to private label brands---Lo- blaw 's No Frills, Trader Joe's and Aldi. They use an economy of scale advantage, marketing generic labels by employing a low price, high volume system to generate profits. According to a 2011 Nielsen study, store brand sales within food, drug and mass merchandise outlets reached $90.3 billion, an increase of 19.4 percent from 2007. Some argue that the private label boom is a long-term trend, while others believe that it is a short-term reaction to the current economic situation. What is certain is that private label brands have won over unbelieving consumers with quality and price. One industry that has shown brisk growth and has revealed hot opportunities for Sixto Packaging has been the private label coffee market. Premium gourmet coffee sales are surg- ing throughout the country as private label brands evolve and expand into new market segments building company aware- ness and consumer loyalty. Consumers are now seeing private label coffee packag- ing to be of equal or higher quality in comparison with other brands, unlocking opportunities for small business. "Private label coffee packaging is upscale in both perception and practice," says Felipe H. Sixto, vice president. "In the past many small coffee roasters were forced to slap adhesive la- bels on their packages. With our custom printed, high-barrier foil lamination, we can provide roll stock or pre-made printed degassing valve bags, in relatively small quantities, to private label roasters and small retailers alike." Sixto Packaging has supplied flexible packaging for store brands such as Winn Dixie, Aldi, Food City, and Sedano's Supermarkets. In addition, major health and wellness trends are driv- ing sales of private label coffee brands as consumers seek healthy alternatives to traditional products by switching to natural, organic, fair trade and nutrient infused coffees. "We have seen a sharp interest in nutrient infused private label diet coffees like JavaFit and South Beach Java," says Felipe H. "Distribution channels are opening up in the service sector as private label coffee packaging is no longer a marketing success used exclusively by retailers. Businesses, from high-end hospitality to professional office services are establishing their private label coffees," says Felipe H. NICHE TO MAIN STREAM A number of years ago, marketing and producing packag- ing for Hispanics was considered a niche. Today with their growing purchasing power, projected to reach $1.3 trillion by 2013, Hispanics are not to be ignored. During a packaging conference in 2011, Felipe E. Sixto, director of sales and marketing, chronicled the impact of www.flexography.org FEBRUARY 2012 FLEXO 47