LOBLAWS no name®  8

This is the fifth installment of a monthly series that shows the effect small simple changes in our lives can have on our finances. Last month, we looked at eating out. This month, we’ll look at the difference between buying brand name groceries and buying no name generic equivalent.

There is a personal side to this one. Having been a chef, it surprises a lot of people that I actually prefer no name brands. Think to yourself honestly: If you took a package of Primo, DeCecco, or any other spaghetti and compared it to a no name brand, how many people in a blind test could point out which one is which? I’m skeptical. So, this is more than just numbers. My ego is on the line as I persuade you readers that it doesn’t make a damn difference.

Meet The Homemaker

The homemaker is a resident of Vancouver and typically does their grocery shopping at Superstore. With the exception of the produce and meat, they buy the name brand products when it comes to non-perishables (pasta, flour, sugar, canned goods, and so on).

What the homemaker doesn’t realise is that the no name brands at Superstore are on average 20% less than the name brand counterparts. The homemaker’s home consists of two adults and two children. On average, they spend $1500 per month on groceries, $500 of which is for non-perishables. Let’s assume that they want to switch over and convert to using all no name products and that whatever money they save will be invested at an average 8% return.

The Results

A savings of 20% on $500 worth of non-perishables comes to $100 each month. If they’re putting aside and saving $100 per month, here are the numbers…

  • 10 years – $12,000 contributed, $17,384 market value, $5,384 earned
  • 20 years – $24,000 contributed, $54,914 market value, $30,914 earned
  • 30 years – $36,000 contributed, $135,940 market value, $99,940 earned
  • 40 years – $48,000 contributed, $310,867 market value, $262,867 earned

Food Snobs, Take Heed

If we’re really honest with ourselves, do we really enjoy name brands more than the no names? I’d dare to say no. I feel most of the time, it’s more a matter of familiarity than it is superiority. So, give no names a shot and see how much money you save.