If a company affixes the words “weight loss” or “lowers cholesterol” to a product, the price skyrockets. For example, Quaker Instant Oatmeal, which is pretty much the same thing as Safeway brand instant oatmeal — except, the Safeway brand has less saturated fat and fewer calories. The shocking thing is the price, which brings “premium price” to a whole new level. From my shopping trip this morning:
Quaker Instant Oatmeal, $4.99 for 12.6 oz.
Safeway store brand instant oatmeal, $2.54 for 15.4 oz.
The brand name is more than twice the price. Not only that, it has two fewer packets of oatmeal in the box. Frankly, I can’t envision a situation where I would even consider buying the Quaker oatmeal; what about you?
I’ve experimented and found that there can sometimes be differences between the brand name and the house brand. The house brand doesn’t always have the same quality or freshness as the brand-name product. Safeway’s version of Cream of Wheat tastes a lot like the cardboard box it comes in, compared to the brand name version. The house brand of grits at Albertson’s has a different consistency (finer grind) and a less “fresh” taste than the Quaker version. That may not make much difference to some people, but it does to me.
BTW, have you tried pricing the non-packetized version? It’s much cheaper (and less wasteful) than the one with all the extra packaging. Yeah, you have to use a measuring cup instead of tearing open a packet… but consider it exercise.
For that matter, you might try the bulk aisle, which will be even cheaper. But go to a place that had a high volume and faster turnover of stock. Going to a place like Whole Foods might also reveal better tasting and better quality stuff at reasonable prices (although not too reasonable… it is Whole Foods after all). 
Never buy any type of store brand cereal- it just doesn’t compare.
Bread- OK. Lunchmeat- OK. Dairy- OK. Spices- really OK. But cereal- nope.
But for the most part I’m a big subscriber to store brand products, to the point where I’m glad they don’t make store brand contraceptives.