SPECIAL REPORT

Innovation drives continued growth in the private label industry

BY GREG SLETER AND ZACHARY RUSSELL

value items that offer retailers the opportunity to differentiate from their competitors.

For the third year, Store Brands is honoring those in private label that are pushing the boundaries and driving the industry forward. Below are the people, product innovations and brands that are this year’s Game Changers.

Jackie Li SENIOR VICE PRESIDENT, PRIVATE BRANDS & GLOBAL SOURCING

Dollar General

Focused on providing its shoppers a product selection with affordable options is the daily goal for Dollar General, and that effort on the private label side is led by Jackie Li. Since 2018, he has overseen the retailer’s private brand strategy that includes merchandising, sales, marketing, branding and product development. He also oversees Dollar General’s company-wide global sourcing strategy as well as managing the company’s global operation offices in Hong Kong, Shenzhen, Shanghai and satellite offices in Southeast Asia, Mexico and Europe.

As a 2023 Store Brands Game Changer, Li said his passion for his job has been a key to his success. “I also believe in being customer-centric,” he said. “You must think beyond your business and make a connection to what your customers really want and need.”

To meet the needs of shoppers, Li said his willingness to innovate and challenge the status quo allows for idea generation that goes beyond the norm. He also values the team around him.

“Teamwork is critical,” he said. “I value having the ability to rally crossfunctional teams to execute on the goal based on our global mission of serving others.

In his six years at Dollar General Li said his greatest accomplishment was building a “fantastic” private brand merchandising team as well as a top-notch global sourcing and operations team around the world with members from 11 countries.

“Our team completely revamped Dollar General’s private brand, Clover Valley, and launched multiple new brands in 2022 including OhGood! vitamins, Nature’s Menu super-premium pet food, Wild Tropics Sun Care and more,” he said. “Overall, our consumable private brand sales have and continue to grow.”

Li also feels there are several factors that make him a game changer.

“Staying curious with a beginner’s mindset helps me to see different points of view and new ideas from employees, peers, and industry experts,” he said. “I always set ambitious goals with a forward-thinking vision for the area of the business I am responsible for. I never settle for mediocrity and recognize you must be resilient no matter what is thrown your way. I believe in being courageous when faced with disruptions and seek to uncover new growth opportunities. Finally, I pride myself on my ability to pull people, processes, innovation, and technology together to execute a vision.”

Jac Ross VICE PRESIDENT, SPROUTS BRAND Sprouts Farmers Market

In the two years since joining Sprouts Farmers Market, Jac Ross, vice president of Sprouts Brands, has driven private brand growth for the grocer. That effort took another step prior to the start of 2023 as she partnered with senior leadership to make private label growth a top priority for the company.

“I’m very passionate about product and ensuring we have the very best products on our shelves through attention to detail,” said Ross, a 2023 Store Brands Game Changer. “I love working with the private brands industry and especially in retail. It’s such a dynamic industry with so many great people.”

She attributes her success to building a strong network internally and externally, and takes the time to listen and observe before making significant decisions. Also, Ross said her success is driven by her willingness to leverage assistance from others.

“It’s certainly a team effort,” she said. “I certainly couldn’t have achieved a high level of success without the support of my team, both direct and more broadly across the organization and our supplier base.”

According to Ross, her greatest accomplishment has been the Sprouts’ private brand success as the grocer surpassed the $1 billion mark in private label sales in 2022, which also took the in-house Sprouts Brand to a penetration level of more than 19%.

“This was up significantly from when I joined Sprouts in 2021,” she said. “A big part of this increase was the redesign of our Sprouts Brand packaging. I’m so proud of the work we have done in this area - we are really making things happen.”

As a 2023 Game Changer, Ross said the time spent identifying her purpose – creating lasting memories through courageous adventures – outlines how she thinks about her life both in and out of work.

“This approach to being willing to try new things and driving change through courageous choices is how I have taken risks over my career,” she said. “Combined with having a positive outlook and my approach to problem solving is how I believe I have facilitated and driven change.”

Luigi Lazzareschi CEO Sofidel

It was more than a decade ago that Sofidel established a presence in the United States with its Horsham, Pa., headquarters. The goal was to provide retailers with a source of private label products manufactured locally.

During its time in the U. S. the company continued to expand its presence and today has operations in Ohio, Wisconsin, Florida, Mississippi, Oklahoma and Nevada. Over the past two years, company CEO and 2023 Store Brands

Over the past two years, Luigi Lazzareschi has driven Sofidel to invest in technology and personnel to enhance the company’s sustainability efforts. As a result, the company is now offering a product selection that allows retailers to carry national brand equivalent items.

Game Changer Luigi Lazzareschi has driven the company to invest in technology and personnel to enhance the company’s sustainability efforts.

The result has been business expansion with a focus on offering retailers paper goods that allow them to carry a selection of private brand products that are equivalent to similar items offered by national brands.

And the company’s efforts have not gone unnoticed. In 2022, Sofidel received an ESG Risk Rating of 13.6 from Morningstar Sustainalytics, ranking it first out of more than 120 companies in the Household Products industry. The rating recognized Sofidel for its strong commitment to the preservation of biodiversity, anti-corruption strategies, transparency, and efforts to fight climate change and global warming.

With 1,500 employees across the U. S., Sofidel was also placed in the “Low Risk” category as of August 2022. This recognizes companies with a strong ability to manage the environmental, social and governance risks that characterize the three areas of a company’s responsibility.

Philip Walliser PRODUCT DEVELOPMENT SENIOR MERCHANT Lowe’s

One of the largest retailers in the country, Lowe’s offers its customers the products they need for home improvement jobs of all shapes and sizes. Philip Walliser, product development senior merchant, oversees the retailer’s Stainmaster brand, which gives customers an in-house choice when it comes to flooring, carpet, tile and more.

A recent accomplishment of Walliser was bringing the brand into a new category: paint. He recognized that customers needed a solution that still provides the quality and performance specifications at a value versus comparable national brands. Walliser partnered with the the retailer’s quality assurance and product development teams, merchants and strategic vendor partners to develop and execute Stainmaster’s paint launch from the ground up.

“Without the exceptional individuals in so many different roles none of this would be possible,” Walliser told Store Brands. “Creating a clear objective, having a mission that people understand and buy-in to, foster the feedback and insights of others, and actually listen to it also contributed to the success.”

Stainmaster paint is backed by a stain resistant lifetime limited warranty, and is available in colors curated by design and trend experts.

“My greatest accomplishment is seeing people excited about what we were doing,” he added. “We were doing things for the first time or challenging the way we had done things previously to get them done more effectively or more quickly to hit our goals.”

Bill Bradshaw

VICE PRESIDENT, SALES Federated Group

Private label supplier Federated Group serves its retail clients several food and household brands to offer customers. One of the brands, Life Every Day, has seen a recent boost in attention thanks to one of the company’s senior members.

Bill Bradshaw, vice president of Sales at the company, led a successful marketing initiative to not only interact, but to relate and connect directly with consumers on several social media platforms, including TikTok and Instagram.

On Federated Group’s page, foods are showcased in unique ways that can help consumers get a first-glimpse at the products. The initiative of directly engaging with consumers on social media platforms has proven Federated Group’s Life Every Day brand to be a successful link between consumers, customers and suppliers.

“We have put a vigorous social media marketing plan in place to connect with a worldwide audience,” said Bradshaw. “We encourage consumers to participate and engage in our various platforms. We focus our message on the authenticity that today’s consumers are searching for. We can say that our ‘Life Inspires’ brands have earned enthusiastic acceptance by current customers while attracting new customers as well.”