NEW YORK - Grocery retailers, such as Kroger, are breaking the perception that private-label products are second-rate to their name-brand counterparts thanks to "splashier packaging and a growing number of organic, all-natural and higher-end products," writes the Associated Press.

The transformation and growth of private-label store brands is largely a result of economic conditions.

"It starts on price ?" that's why people gravitate toward it," Steve Rosenstock, head of the consumer products division for Clarkston Consulting in Durham, N.C., told the news source. "But what we've seen is they [customers] develop loyalty to store brands that is commensurate with the loyalty they had with national brands."

According to The NPD Group, store brands now account for 28% of all food and drink consumed in the United States, up from 20% about a decade ago. Most supermarkets offer two tiers of store brands: the basic line that competes on price and a more premium line.

Kroger, for example, recently introduced private-label organic milk and eggs, and Whole Foods Markets introduced 250 private-label items ranging from goat cheese and pesto frozen pizza to flax milk and organic vegan lasagna.

Grocers entering the private-label arena know that while price is king, taste is the trump card.

"There's a certain expectation that a saltine will taste a certain way," Linda Severin, head of corporate brands for Kroger, told the news source. "And in those cases, our goal is to meet those defined expectations."

Kroger is also trying to "cultivate brand loyalty" with items only found in Kroger stores, such as new private-label ice cream flavors "Sticky Bun" and "Honey Baklava."

Despite private-label growth, there are some products where the major brands continue to corner the market, such as sports drinks, soft drinks and beer.