This empirical study explores the applicability of Modern Portfolio Theory (MPT) within the grocery sector to determine the viability of private label (PL) products as a cost-efficient alternative to national brands (NB) amidst rising food inflation. With a focus on optimizing consumer choice through a risk-return framework, the study evaluates various grocery categories from major U.S. retailers. The findings reveal that, contrary to common assumptions, PL products do not consistently offer a more efficient choice for consumers. In most categories, NB items demonstrate superior performance in terms of risk-return efficiency. While PL goods occasionally offer competitive returns, especially in categories like 2% milk and eggs, they often exhibit higher risk compared to their NB counterparts. These insights provide valuable implications for consumers seeking to maximize grocery value and for retailers aiming to enhance pricing strategies.