Package goods have been hard hit in this recession.  Among brands hardest hit are Crest toothpaste, Hunt’s canned tomatoes, PineSol cleaners and Tylenol.

So why the decline?  Experts blame private labels and temporary price reductions.  “Temporary” price reductions are more likely to reduce brand loyality and encourage brand switching long term.  Also, many consumers who have traded down to store brands tend not to come back to the major brands.  Don’t get confused though, private labels are feeling the pinch as well.

So are any brands out there holding on to their loyalists?  The answer is yes.  Coca-Cola Classic, Folgers and Thomas’ English Muffins each kept more than 60% of their loyal consumers from 2007.  Many tout competitive product pricing and aggressive marketing efforts for their success.  All of these companies have kept a steady marketing presence through this recession staying top of mind with the consumer.

The package-goods industry is certainly becoming more competitive with private labels having a stronger presence.  I say let the battle rage on between the big guys and private labels and maybe we will all get a break.