JULY/AUGUST 2023
FOCUS ON QUALITY
Retailers and suppliers develop unique new products in an effort to keep sales momentum growing P. 8
SPECIAL REPORT:
PRIVATE BRANDS GROW AT CONVENIENCE STORES P. 20
THE PULSE OF PRIVATE LABEL
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4 Store Brands l July/August 2023 l www.storebrands.com A FOCUS ON QUALITY Retailers and suppliers develop unique new products in an effort to keep sales momentum growing Store Brands (ISSN-0190-9851; USPS # 0488-370) is published monthly, except January, March, May, July and September by EnsembleIQ, 8550 W. Bryn Mawr, Suite 200, Chicago, IL 60631. Subscriptions: One year, $100; two years, $182. One year, Canada $118; two years, $215 One year, foreign $135; two years, $225. One year, digital $70; two year, $130.Single copies $14 US, Canada & foreign $16. Payable in advance with a bank draft drawn on a US bank in US funds.Single copies $20. Foreign, $85. Canada Post: Canada returns to be sent to IDS, P.O. Box 456, Niagara Falls, ON, L2E6V2. Periodicals postage rates paid at Chicago, IL and additional mailing offices. Printed in USA. POSTMASTER: send all address changes to Store Brands PO Box 3200 Northbrook, IL 60065-3200. Copyright 2023 by EnsembleIQ. All rights reserved, including the rights to reproduce in whole or in part. All letters to the editors of this magazine will be treated as having been submitted for publication. The magazine reserves the right to edit and abridge them. The publication is available in microform from University Microfilms International, 300 North Zeeb Road, Ann Arbor, MI, 48106. The contents of this publication can not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for claims and representations. VOLUME 46 NO.4 8 08.23 06 Editor’s Note 20 Special Report Private brand growth at convenience stores 30 Dips & Sauces New flavors keep segment fresh 32 Made In America U.S. manufacturing makes gains
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THE HEAT IS ON
NEW RETAIL LAUNCHES KEEP THE PRIVATE LABEL INDUSTRY HOT
How’s your summer going?
For much of the continental United States, the thermostat has been turned up as the usual seasonal heat in the southwest and southeast has been hotter than we’ve seen, well, maybe ever.
Also hotter than ever is the private label industry. Recent statistics from the Private Label Manufacturers Association show additional gains in sales and unit share as shoppers continue filling their baskets and shopping carts with a host of store brand products.
The choices for consumers are continuing to grow. Several leading retailers over the past few months have rolled out new private brand assortments, all with the goal of giving their shoppers more choices at a better value.
In late July, Dollar General said it was putting “food first” with the addition of more than 100 products to its Clover Valley brand. The new items include a selection of sauces, condiments, entrees, sides and snacks at affordable prices. The new products are part of the retailer’s strategy to provide its customers with healthier options that include more food products and fresh food.
A few weeks before the Dollar General announcement, Southeastern Grocers aggressively upped its private label assortment with the launch of its Know & Love line of “clean products.” The initial selection includes food and beverage products along with household items made free of nearly 100 ingredients, such as certified color additives, partially hydrogenated oils, high fructose corn syrup and sweeteners such as aspartame, saccharin and sucralose.
“Know & Love was born out of our desire to offer our customers clean products, with quality ingredients for a great price,” Brooke Rice, SEG’s director of Own Brands told Store Brands. Our goal was to create a brand that could be as simple, yet as bold as the ingredients within.”
Additionally, retailers including CVS, Macy’s, At Home, and Crate & Barrel are among those who made significant additions to their respective private brand assortments in recent weeks. I also encourage you to read our special report in this issue focused on the growth of private brands in the convenience store sector.
While economic conditions were largely responsible for consumers shifting to private brand products, retailers have taken this opportunity to further build loyalty with their shoppers. They have filled the product development pipeline with a host of unique items that meet specific shopper needs.
Things are hot in the world of private brands. Let’s keep throwing logs on the fire.
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6 Store Brands l July/August 2023 l www.storebrands.com THE CONTENTS OF THIS PUBLICATION MAY NOT BE REPRODUCED IN WHOLE OR IN PART WITHOUT THE CONSENT OF THE PUBLISHER. THE PUBLISHER IS NOT RESPONSIBLE FOR PRODUCT CLAIMS AND REPRESENTATIONS.
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A FOCUS ON QUALITY
Retailers and suppliers develop unique new products in an effort to keep sales momentum growing
BY GREG SLETER AND ZACHARY RUSSELLThe past two years have been a period of strong growth across the private label industry. Spurred mainly by inflation rates not seen in a generation, consumers turned to retail private brand products in an effort to stretch their dollars. In many instances, what they found were items that were equal to if not better than national branded products that offered a considerable savings. Looking to maintain this period of growth, new product development seen over the past year has been focused on uniqueness and differentiation. No longer are retailers satisfied with providing shoppers products that are national brand equivalents. Today, offering shoppers consumables, health & wellness products, housewares, office supplies and more that provide high-value and cannot be found at a competitor is the focus. From eating healthy, to providing better quality pet food, and meeting the needs of an aging population, the 2023 Store Brands Editors’ Picks reflect this effort.
FOOD
BRATS & SAUSAGE
GOLD
Best Choice
Bratwursts & Italian Sausage
RETAILER: Associated Wholesale Grocers
SUPPLIER: Associated Wholesale Grocers
ABOUT: Ideal for summer grilling, these private label bratwursts and Italian sausages come in regular, cheddar, beer and Italian varieties.
SILVER
Farmington Beer Brats
RETAILER: Save A Lot
SUPPLIER: Randolph
Packaging
ABOUT: The brats feature a newly-formulated recipe that highlights a real beer flavor, as well as updated packaging to catch the eye of shoppers.
BRONZE
Kroger Mercado Chorizo
RETAILER: Kroger
SUPPLIER: Kroger
ABOUT: Kroger’s Mercado Chorizo is a nitrite-free sausage that offers customers a high-quality and authentic eating experience.
MEAT & POULTRY
GOLD
Private Selection
Duroc Pork
RETAILER: Kroger
SUPPLIER: Kroger
ABOUT: Duroc is a heritage breed of pork and a product of the U.S. Compared to conventional pork, Duroc provides superior marbling and natural flavor.
SILVER
Simple Truth Kipster Eggs
RETAILER: Kroger
SUPPLIER: Kroger
ABOUT: Simple Truth collaborated with
8 Store Brands l July/August 2023 l www.storebrands.com EDITOR’S PICKS
Kipster, a Dutch Innovator that has revolutionized egg farming, in order to bring humane and sustainable farms to the U.S. market. This Kroger item is the first carbon-neutral egg offering – not just in private label – but in the U.S.
BRONZE
Crav’n Flavor Beef Sticks
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates LLC
ABOUT: Made with premium beef and packed with 7 grams of protein, Crav’n Flavor Beef Sticks are ideal for on-the-go eating, school lunches, traveling and more.
FRESH
GOLD Private Selection Street Corn
RETAILER: Kroger
SUPPLIER: Kroger
ABOUT: The Kroger team has developed four unique kits for its private street corn: Chipotle Pepper, Citrus Hatch Ancho Chile, Everything Seasoned and Jalapeño Garlic Ranch.
SILVER
Basket & Bushel Vegetable Tray with Ranch
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates LLC
ABOUT: Vegetable trays from the Basket & Bushel brand offer Topco member store shoppers an assortment of fresh, pre-cut ready-to-serve veggies at a great price, making eating healthy more convenient.
BRONZE
Basket & Bushel Citrus
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates LLC
ABOUT: Navel oranges, lemons, blood oranges and Cara Cara navel oranges appeal to fresh aisle shoppers with citrus flavor profiles at a lower price.
FROZEN GOLD
Best Choice Frozen Lasagnas
RETAILER: Associated Wholesale Grocers
SUPPLIER: Associated Wholesale Grocers
ABOUT: With eight hearty servings per “party-size” box and easy instructions, consumers can conveniently enjoy restaurant-quality lasagna and feed the whole family with this offering from Associated Wholesale Grocers.
SILVER
State Street Poultry
Zesty Asian Chicken Wings
RETAILER: Save A Lot
SUPPLIER: Erie Meats
ABOUT: To help simplify mealtime, Save A Lot worked to expand their fully cooked wing options with the addition of Zesty Asian Chicken Wings.
BRONZE
SE Grocers Party Cubes
RETAILER: Southeastern Grocers
SUPPLIER: Relocalize
ABOUT: The SE Grocers Party Cubes, is a 10-pound super-premium cubed ice offering that was made alongside Relocalize to pilot ice manufacturing in the world’s first autonomous microfactory. The production method allowed the retailer to produce zero water waste and reduce trucking carbon dioxide emissions by 90%.
PIZZA
GOLD Market Selections Flatbread Pizzas
RETAILER: Save A Lot
SUPPLIER: Rich Products Corp.
ABOUT: The launch of Market Selections Flatbread Pizzas have helped offset some category declines
experienced by the rising costs of the traditional take & bake pizzas.
SILVER
Open Nature
Cauliflower Crust Pizza Garlic Chicken Alfredo
RETAILER: Albertsons
SUPPLIER: Co-packed
ABOUT: The only white sauce pizza in Albertsons’ assortment, shoppers have gravitated towards the new flavor as a low-carb meal solution.
BREAD
GOLD Simple Truth
ReGrained Bread
RETAILER: Kroger
SUPPLIER: Kroger
ABOUT: The bread contains 10% of ReGrained SuperGrain+, the company’s flagship ingredient, which offers “flavor depth and naturally fortified nutritional attributes.”
SILVER
Prestige Brioche Burger Buns
RETAILER: Southeastern Grocers
SUPPLIER: Wenner Bread Products
ABOUT: SE Grocers Prestige Brioche Burger Buns are made with an authentic French recipe, making for a sweet and buttery flavor and a soft and light texture.
BRONZE
Prestige Brioche Sliced Loaf
RETAILER: Southeastern Grocers
SUPPLIER: Wenner Bread Products
ABOUT: In addition to the brioche burger buns, Southeastern Grocers offers the same French flavor in a sliced loaf format for sandwiches.
www.storebrands.com l July/August 2023 l Store Brands 9 EDITOR’S PICKS
EDITOR’S PICKS
SNACKS
GOLD
Potato chips
RETAILER: Yesway
SUPPLIER: Ballreich’s
ABOUT: Yesway’s potato chips are a hit with consumers, and have been able to stand out in a field dominated by big brands. The thick-cut, wavy chips come in a variety of flavors.
SILVER
Organic Fruit Circles Favorites Fun Pack
RETAILER: Thrive Market
SUPPLIER: Thrive Market
ABOUT: These organic, sweet snacks from Thrive Market are designed for adults and children, and make for a mess-free, convenient way to enjoy real fruit.
BRONZE
Cranberry Cashew
Almond Nut Cluster
RETAILER: UNFI
SUPPLIER: UNFI
ABOUT: The Wild Harvest brand
Cranberry Cashew
Almond Nut
Clusters are free from more than 140 undesirable ingredients and offer a unique taste.
CONDIMENTS
GOLD Private Selection Marinades with Koji
RETAILER: Kroger
SUPPLIER: Kroger
ABOUT: With four different flavors of marinade featuring the traditional Japanese ingredient used to tenderize meats for centuries, Kroger is expanding its private label offerings in the Asian aisle.
SILVER
Gustare Vita Hollandaise Sauce
RETAILER: Hy-Vee
SUPPLIER: Gustare Vita
ABOUT: Made with ingredients from Italy, this gourmet hollandaise sauce takes the time and money out of making a gourmet breakfast.
BRONZE
Schnucks Classic
Guacamole Mini Cups 4pk
RETAILER: Schnuck Markets
SUPPLIER: Freshcourt
ABOUT: The Schnucks brand mini cups feature creamy guacamole with hints of lime and jalapeño, perfect for lunches and on-the-go snacks.
ICE CREAM/FROZEN DESSERTS
GOLD
Crav’n Flavor Rainbow
Sherbet Push Pop
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates LLC
ABOUT: Each box contains six pops, made up of orange, cherry and lemon lime sherbert. This new offering has helped boost Own Brand penetration in the frozen section at Topco stores.
SILVER
Prestige Chocolate Covered Strawberry Ice Cream Pint
RETAILER: Southeastern Grocers
SUPPLIER: Perry’s Ice Cream
ABOUT: The ice cream offers consumers an indulgent treat featuring premium strawberry-flavored ice cream with strawberry pieces and fudge chunks.
BRONZE
No Sugar Added Butter Pecan Ice Cream
RETAILER: Southeastern Grocers
SUPPLIER: House of Flavor
ABOUT: The ice cream offers an option
for consumers who are diabetic, sugarsensitive or follow a keto diet, without sacrificing indulgence.
FROZEN FRUIT DESSERTS
GOLD
Best Choice Frozen Fruit Cobblers
RETAILER: Associated Wholesale Grocers
SUPPLIER: Associated Wholesale Grocers
ABOUT: Available in apple, blackberry, blueberry and peach flavors, the cobblers offer a nostalgic, homemadeinspired dessert offering, made with real butter and pure cane sugar.
SILVER
Prestige Peach Frozen Yogurt
RETAILER: Southeastern Grocers
SUPPLIER: Perry’s Ice Cream
ABOUT: This product from Southeastern Grocers gives consumers a rich and creamy premium peach-flavored frozen yogurt with peach pieces and a peach swirl.
BRONZE
Prestige Lime Fruit Bars
RETAILER: Southeastern Grocers
SUPPLIER: Natural Fruit Company
ABOUT: The fruit bars offer an all-natural frozen treat with a tangy sweet and sour flavor in a six-count box, and are made with cane sugar and lime juice concentrate.
SPECIALTY FOODS
GOLD Cleary by Best Choice Turbinado Sugar
RETAILER: Associated Wholesale Grocers
SUPPLIER: Associated Wholesale Grocers
ABOUT: The turbinado raw cane sugar joins four other organic sugar offerings in the Clearly by Best Choice collection, further expanding consumers’ options.
10 Store Brands l July/August 2023 l www.storebrands.com
Your dedication to partnering together to build best-in-class brands means big wins in every aisle for your stores and for the shoppers in your communities! Congratulations Topco Owners! BEST NEW PRODUCTS To learn more, visit topco.com/members
EDITOR’S PICKS
SILVER
SE Grocers Cuban Seasoned Beans
RETAILER: Southeastern Grocers
SUPPLIER: Hanover Foods Corporation
ABOUT: Serving many Cuban communities in Florida and beyond, the black beans are seasoned in a savory garlic and lime sauce.
BRONZE
Clearly by Best Choice Organic Panko Bread Crumbs
RETAILER: Associated Wholesale Grocers
SUPPLIER: Associated Wholesale Grocers
ABOUT: Designed for baking or frying, these bread crumbs coat consumers’ favorite proteins and top savory dishes.
SPICES & SEASONINGS
GOLD
Schnucks Braggin’ Rights Sweet Rib Dry Rub
RETAILER: Schnuck Markets
SUPPLIER: The Spice Lab
ABOUT: Schnucks has extended the name into a line of premium dry rubs that feature authentic St. Louis-style barbeque flavor in a premium dry rub.
SILVER:
Global Seasonings
SUPPLIER: International Spice
ABOUT: The blend aims to bring the unique flavors of Italy to the kitchens in the U.S.
DAIRY
GOLD
Schnucks Carolina
Reaper Shredded Cheese
RETAILER: Schnuck
Markets
SUPPLIER: Great Lakes
Cheese
ABOUT: This shredded cheese combines the intense heat of Carolina Reaper peppers with the creamy goodness of cheese.
SILVER
Carolina Reaper Cheese Shreds
RETAILER: Southeastern Grocers
SUPPLIER: Great Lakes Cheese
ABOUT: The latest shredded cheese from SEG features Monterey Jack with jalapeño, habanero and Carolina Reaper peppers.
BRONZE
Food Club Cracker Cut Gouda Cheese
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates LLC
ABOUT: This gouda offering from Topco’s Food Club brand provides a delicious, convenient, new cheese solution.
OILS & VINEGARS
GOLD
Oliver’s Own Extra Virgin Olive Oils & Vinegars
RETAILER: Oliver’s Market
SUPPLIER: Millpress
ABOUT: In partnership with one of America’s best curators of quality oils and vinegars, the Oliver’s buying team used their formal training and expertise to individually select each of the oils and vinegars in the collection.
SILVER
Seven Farms Avocado Oil
RETAILER: Federated Foods
SUPPLIER: Federated Group
ABOUT: Seven Farms Avocado Oil was developed to fill a market gap and bring a healthier choice, quality item to today’s shopper at a great value.
BRONZE
SE Grocers Avocado Oil
RETAILER: Southeastern Grocers
SUPPLIER: Loghouse Foods
ABOUT: This kosher, non-GMO oil was developed to meet the growing demand of healthconscious customers.
BAKING/BAKED GOODS
GOLD
Prestige Carrot Cupcake & Frosting Baking Mix
RETAILER: Southeastern Grocers
SUPPLIER: Little Big Farms
ABOUT: This new mix allows customers to easily bake deliciously moist carrot cake cupcakes.
SILVER
Two-Bite Mini Bites
Cinnamon Rolls & Brownies
RETAILER: Southeastern Grocers
SUPPLIER: Give and Go
Prepared Foods Company
ABOUT: These mini-bite cinnamon rolls have the ideal amount of brown sugar filling topped with a sweet honey glaze, and are made with quality ingredients.
BRONZE
Sweet P’s Mini Donuts
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates LLC
ABOUT: The donuts were developed to offer shoppers a sweet indulgence in a variety of flavors.
BREAKFAST
GOLD
Nice! Cinnamon Squares
RETAILER: Walgreens
ABOUT: The new Cinnamon Squares from Walgreens offer the same tasty flavor of well-known national brands at a much lower price.
SILVER
Full Circle Market Breakfast Rounds
RETAILER: Topco Member Stores
SUPPLIER: Topco Associates
LLC
ABOUT: Available in Apple, Blueberry and Cranberry flavors, the Breakfast Rounds provide shoppers with a delicious, convenient option within Fresh Bakery.
12 Store Brands l July/August 2023 l www.storebrands.com
BRONZE
Signature Circle
Breakfast Bowl Meat
Lovers
RETAILER: Albertsons
SUPPLIER: Co-packed
ABOUT: The breakfast bowls are a convenient breakfast solution packed with protein in every bite.
HOME/HOUSEWARES
GOLD
The Jumbo Java 14 Cup
Coffeemaker
SUPPLIER: Salton
ABOUT: The stainless-steel coffeemaker offers a pricepoint typically seen for 12 cup units, but gives consumers the ability to make 14 cups of their favorite coffee. The unit is available for retail private label programs.
SILVER
Simply Done Glass Food Storage
RETAILER: Topco Member Stores
ABOUT: Offered in five sizes, the stain resistant containers are leak-proof, and have snap-on lids that hold in freshness and prevent accidental spillage and freezer burn.
BRONZE
LifeGoods Paper Straws
SUPPLIER: Federated Group
ABOUT: The colorful paper straws are environmentally friendly and not typically found in a private label assortment.
OFFICE SUPPLIES
GOLD
Union & Scale Essentials
Ergonomic Task Chair
RETAILER: Staples
ABOUT: The task chair is an ergonomic seating solution designed to help users maintain healthy posture while keeping them comfortable and productive throughout an 8-hour workday.
SILVER
time to expect more.
Perk Hello Eco! Assortment
RETAILER: Staples
ABOUT: The assortment is centered on sustainability and made of 100% commercially compostable products. The cups use a plant-based plastic lining to make this possible, while plates and bowls use a sugarcane-based alternative to traditional paper.
www.storebrands.com l July/August 2023 l Store Brands 13 EDITOR’S PICKS
Thank you to our customers, partners and employees. You’ve helped keep shelves stocked, families fed and the supply chain moving through it all. Tell us how we can do more Together, we can help every supply network be more sustainable, more efficient and more resilient. Now and for the future. Expect more with CHEP.
It’s
CLEANING
GOLD
Lasting Brilliance
SUPPLIER: The Kingswood Company
ABOUT: The assortment includes a range of specially designed formulas for cleaning an entire jewelry collection at-home and on-the-go.
SILVER
Brilliance Infinity Dishwasher Detergent
RETAILER: Southeastern Grocers
SUPPLIER: TLS America
ABOUT: Featuring a triple action threechamber ultra-grease fighting formula, the detergent requires no pre-wash and makes dishes brilliantly clean.
BRONZE
Oxy Multi-Purpose Stain Remover
RETAILER: Southeastern Grocers
SUPPLIER: Value Smart Products
ABOUT: The product is chlorine-free, meets the demands of high-efficiency washers and is aligned with the latest innovations in the growing laundry category.
PETS GOLD
Praise Complete Pet Products
SUPPLIER: Federated Group
ABOUT: Praise Complete offers budget friendly, quality nutrition in several dry cat and dog food varieties. Multiple flavored dog treats are available as well in this expanding brand.
SILVER
Nature’s Menu
RETAILER: Dollar General
SUPPLIER: Sunshine Mills
ABOUT: Made by a family-owned and operated company in the U.S., Nature’s Menu elevated dry pet food line delivers premium-quality, healthy pet food – at the right price.
BRONZE
Pure Harmony Soft Jerky Bites
RETAILER: Topco Member Stores
ABOUT: Pure Harmony Skin & Coat Soft Jerky Bites offer support for healthy skin and a shiny coat while also supporting hip and joint health.
HEALTH, BEAUTY & WELLNESS
PERSONAL CARE
GOLD Air Compression Foot & Calf Massagers
RETAILER: Walgreens
ABOUT: The Air Compression Foot & Calf Massagers are electronically powered devices intended to relieve minor muscle aches and pains with the use of air pockets that inflate and deflate.
SILVER
TopCare Foaming Bath with Epsom Salts
RETAILER: Topco Member Stores
ABOUT: Made with essential oils and offering the benefits of epsom salts, the products offer a fresh lavender scent and are free from parabens, phthalates and formaldehyde.
BRONZE
Copper Compression Gloves
RETAILER: Walgreens
ABOUT: The lightweight gloves are adjustable and the copper-infused threading is woven into the gloves to provide comfortable support for weak, stiff or sore hands. A silicone beading is designed to minimize slip.
Award winner! 2023
14 Store Brands l July/August 2023 l www.storebrands.com
EDITOR’S PICKS
SKINCARE
GOLD
Joy Works Hydrating Facial Moisturizer
RETAILER: Dollar General
SUPPLIER: Kao USA
ABOUT: The products are dermatologist-tested, fragrance-free, clean, & cruelty-free, products that are infused with prebiotic and skin conditioning ingredients that help soothe sensitive skin.
SILVER
Vitamin C Brightening Serum
RETAILER: Dollar General
SUPPLIER: Maesa
ABOUT: The lightweight serum hydrates skin while also protecting from environmental stressors. It is completely vegan and cruelty free, made with clean ingredients, and is dermatologist-tested.
BRONZE
Renewing SA Cleanser
SUPPLIER: Garcoa
ABOUT: Garcoa’s Renewing SA Cleanser addresses the growing trend of skin sensitivity with a nondrying and non-irritating formula that is gentle on skin and yet packs a punch against acnecausing bacteria.
HAIRCARE
GOLD
Clearly by Best Choice Hair & Body Care
RETAILER: Associated Wholesale Grocers
ABOUT: Featuring shampoos, conditioners, body washes, and lotions, products in the line feature scents including Tea Tree, Lavender and Citrus Thyme.
SILVER
Curl Rhythm Haircare
RETAILER: Dollar General
SUPPLIER: High Ridge Brands, LLC
ABOUT: The proprietary formulas unlock the secret to luscious locks with the power of Baobob Oil imported from West Africa. This is then blended in the supplier’s labs to meet the needs of all hair types.
BRONZE
Clean Classic Shampoo
SUPPLIER: Garcoa
ABOUT: Garcoa’s Classic Clean shampoo uses one of the most efficacious ingredients to help relieve the uncomfortable symptoms of Dandruff and Seborrheic Dermatitis— Pyrithione Zinc.
www.storebrands.com l July/August 2023 l Store Brands 15 EDITOR’S PICKS
MEDICINE
GOLD
TopCare Dual Action Pain Reliever
RETAILER: Topco Member Stores
ABOUT: TopCare Dual Action Pain Reliever offers a premium retail that will grow total sales and increase profits while offering shoppers significant savings compared to the national brand equivalent.
SILVER
Gentle Drop
SUPPLIER: Bedo Solutions
ABOUT: Invented by two Oregon ophthalmologists, the goal was to offer a product to consumers that would eliminate the struggle of administering the drops.
BRONZE
TopCare Cool Mint Acid Reducers
RETAILER: Topco Member Stores
ABOUT: The new and innovative flavor profile of TopCare Cool Mint Acid Reducers is creating excitement to the category. According to an eight-flavor taste study, Cool Mint is the flavor profile they most preferred.
SUPPLEMENTS
GOLD
QuickServe Vitamin Dispensing System
RETAILER: CVS
ABOUT: The new Vitamin Dispensing System features a countertop design that allows vitamins and supplements to be quickly dispensed with the touch of your finger.
SILVER
Brainstrong Memory Supplement
RETAILER: Topco Member Stores
ABOUT: TopCare Memory Support Dietary Supplement is designed to promote memory health, mental sharpness and mental focus.
BRONZE
Free & Pure Red and Green Capsules
RETAILER: Walgreens
ABOUT: Super Reds/Greens are an innovative method for delivering not only a consumer’s daily intake of veggies, fruits, antioxidants and fibers, but also probiotics, prebiotics and enzymes.
MEDICAL
GOLD
Rapid Seal Wound Gel
RETAILER: Walgreens
ABOUT: The Rapid-Seal Wound Gel is an antibacterial, non-irritating gel that stops bleeding in seconds The gel format makes it significantly easier to apply than other powders in the market.
SILVER
Silver Alginate Wound Dressing
RETAILER: Walgreens
ABOUT: The Silver Alginate Wound Dressings are antibacterial, highly absorbent and helps reduce bacterial growth, making this product ideal for minor cuts, scrapes and abrasions.
BRONZE
Powered Suction Assist Bar
RETAILER: Walgreens
ABOUT: Equipped with a batterypowered function that connects the bar to the mounting surface with a push of a button, colored lights indicate a secure connection.
PLANT BASED/NON-DIARY
GOLD
Lucerne Seasonal Maple Brown Sugar Non-Dairy Creamer
RETAILER: Albertsons
ABOUT: The Lucerne Seasonal Maple Brown Sugar Non-Dairy Creamer delivers a unique single solution to Albertsons shelves in an emerging flavor profile.
SILVER
Full Circle Market Plant-Based Cream Cheese Spread
RETAILER: Topco Member Stores
ABOUT: Allergenfriendly and better for the environment, products across the line feature cream cheese flavor, offering only the upside of traditional cream cheese spreads.
BRONZE
Open Nature Cherry Maximum Fudge Moose Tracks
RETAILER: Albertsons
ABOUT: The Almond Milk
Cherry Maximum Fudge pint is the grocer’s first non-dairy item, and the only one of its kind, that is cobranded with Denali Moose Tracks.
BEVERAGES
WATER GOLD
Artesian Spring Water
RETAILER: Schnuck Markets
SUPPLIER: H2o Technologies
ABOUT: The water’s natural alkalinity is 8.3 to 8.4pH and its natural mineral content gives it electrolytes. H2o Technologies uses state-of-the-art UV filtration and ozonation processes to meet FDA requirements for bottling and to ensure quality without changing the taste.
SILVER
Cranberry Raspberry Sparkling Water
RETAILER: Wild Harvest
SUPPLIER: UNFI
ABOUT: The sparkling water is unsweetened, sodiumfree and kosher certified to offer consumers a better-for-you beverage option that delivers on both flavor and quality at a great value. The sparkling water also contains no artificial colors, artificial sweeteners, artificial preservatives or artificial flavors.
BRONZE
Soleil Yuzu Citrus Sparkling Water
RETAILER: Albertsons
ABOUT: Soleil Yuzu Citrus Sparkling offers a citrus blend with no added sugar or sweeteners. Both newcomers
16 Store Brands l July/August 2023 l www.storebrands.com EDITOR’S PICKS
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of our produce is grown by AMERICAN FARMERS 99%
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to yuzu and everyday consumers will find this as a well balanced flavor.
COFFEE/TEA
GOLD
McDaniel’s Cafe Espresso
RETAILER: Save A Lot
SUPPLIER: Pan American Coffee
ABOUT: Save A Lot has created an espresso blend that meets, and oftentimes beats its national brand competitors in taste tests.
SILVER
Meadow St. Blend
RETAILER: Dripkit
SUPPLIER: NuZee, Inc.
ABOUT: With notes of candied citrus, toasted vanilla and melon, Dripkit’s Meadow St. Blend is a “do it all” coffee. This fresh single-serve pour over containing 17 grams of roasted and ground coffee makes for an easy-to-make 10-ounce cup of coffee.
BRONZE
Hibiscus Elderberry
Herbal Tea
RETAILER: Southeastern Grocers
SUPPLIER: Harris Tea
ABOUT: This unique blend is both tart and sweet with delicate notes of elderberry and cherry.
SPORTS DRINKS
GOLD
Signature Select
Hydration
Electrolyte Drink Mix
Passion Fruit
RETAILER: Albertsons
ABOUT: The drink mix provides an excellent source of five vitamins and is sold as an 8-count box allowing for a more competitive price on shelf.
SILVER
Life Every Day
Pediatric Electrolyte Drink
SUPPLIER: Federated Group
ABOUT: Life Every Day Electrolyte drinks were developed to fill a gap in the market and is offered in four flavors: Strawberry, Fruit Punch, Grape and Unflavored.
BRONZE
Mixed Berry
Hydration Booster
RETAILER: Southeastern Grocers
SUPPLIER: Heartland
ABOUT: SEG’s first sport hydration booster in the segment offers two times the electrolytes of traditional sports drinks and includes essential vitamins like B3, B6 and B12.
JUICES
GOLD Food Club Strawberry Lemonade
RETAILER: Topco
Member Stores
ABOUT: Topco’s Food Club Strawberry
Lemonade is made with real lemons, and no artificial flavors, colors, or
preservatives. The bottle is a plastic carafe that is tableworthy.
SILVER
Food Club Cranberry
Tropical Juice Drink
RETAILER: Topco Member Stores
ABOUT: Food Club
Cranberry Tropical Juice Drink contains a blend of the top trending tropical flavors, Mango, Guava and Passionfruit. The beverage contains 11% juice with no added sugar and 100% daily value of Vitamin C.
OTHER BEVERAGES
GOLD
Mango & Pineapple
Liquid Water
Enhancer
RETAILER:
Southeastern Grocers
SUPPLIER: Heartland
ABOUT: The new Mango Pineapple Liquid Water Enhancer is sugar-free, glutenfree and full of tropical flavor.
SILVER
Small Batch Vodka
RETAILER: Schnuck Markets
SUPPLIER: Stumpy’s Spirits
ABOUT: Each batch of vodka is silverfiltered to further enhance the vodka’s clarity and refine its taste profile.
BRONZE:
Nice! Ginger Ale 6pk. Min-Cans
RETAILER: Walgreens
ABOUT: The product averages $1 cheaper than the everyday retail price of the national brand equivalent and is offered at a convenient 7.5 ounce size.
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EDITORS
BECAUSE WE’RE NOT FULL OF HOT AIR
DRIVING GROWTH
CONVENIENCE STORES ARE BOOSTING THEIR ASSORTMENTS OF PRIVATE BRANDS TO OFFER SHOPPERS UNIQUE, HIGH-VALUE PRODUCTS
By Greg SleterSales of private brand products across numerous categories continue to grow as mass merchants, grocery stores and home retailers among others have their respective product development pipelines running at full-speed.
Joining this movement are convenience stores. Several leading C-store chains either have in place or are ramping-up strategic plans in an effort to boost their assortment of private label products. And their motivation is clear: They’re not looking to simply offer their shoppers lower-priced national brand equivalents (NBE). They are using this opportunity to develop proprietary products that will further build loyalty with those walking through the doors.
When looking to grow private label assortments, industry experts say it’s important for C-store operators to focus on how they brand their products, and then how the products are marketed to consumers.
“It has to start with the brand and offering a clear picture of what the brand stands for,” said Kay Segal, founder partner at the consulting agency Business Accelerator Team. “Once defined, that leads right into the marketing strategy to promote the brand. And it’s important to go beyond just having an alternative water or alternative candy selection.”
Retailers were clear in their desire to develop private brand assortments that offer products not found at other retailers and provide shoppers something different than the national brand items already on their shelves.
“Our goal when developing our private label assortment was not to be necessarily sourcing products,” said Kevin Smartt, chief executive officer of TXB. “We are trying to offer products that are high quality and unique either in flavor or in packaging size. We want to offer something that gives us some differentiating factors from the other CPG brands we are selling.”
With those guardrails in mind, TXB’s private label assortment – which is sold under the TXB brand – has grown to the point that today the retailer
has a strong pipeline of products that include a host of items such as meat snacks, juices, water, a rehydration beverage line and coffee.
Similar to TXB, the private brand product development efforts at Love’s Travel Stops has been focused on unique products that allow the retailer to differentiate from its competitors. But first, merchants focused on growing the company’s private label assortment developed a communication strategy to raise awareness of own brands internally, said Casey Creegan, manager of Merchandising at Love’s Travel Stops.
“We had to educate folks within our company as to why we needed private label products, their importance, and why it is important to focus on quality when we do private label, especially when we’re putting the Love’s name on these items,” she said.
A key product in its private brand assortment has been its bottled water program, sold under the Love’s brand. The water, Creegan said, has an eye-catching label design and is one that shoppers often include in photos they post to Instagram.
“It’s been a good branding and marketing piece for us,” she added.
At Casey’s, the growth in private brands over the past three years stems largely from a strategic plan that was put in place in early 2020. And in spite of the challenges the pandemic presented, the convenience store has moved forward and continues to see growth.
“We knew it was really critical for us to continue to offer affordable, high-quality choices to our guests,” said Tom Brennan, chief merchandising officer with Casey’s. “Our customers know us for our high-quality pizza that we make from scratch, so we
20 Store Brands l July/August 2023 l www.storebrands.com
Casey’s UP brand is aimed at shoppers seeking healthy hydration options.
SPECIAL REPORT
Private label water is a top seller at Love’s Travel Stops.
know that anything we put the Casey’s brand on absolutely has to deliver on quality.”
Today, Casey’s has hundreds of products in more than 27 categories across the store. And differing from others in the C-store space, Casey’s oppor tunistically has developed sub-brands for specific product categories. For example, its selection of UP water is positioned as a premium product in the cat egory. It also features a selection of ice cream in pint sizes sold under the Happyness By The Pint brand.
“Most of our private label products are sold under the Casey’s brand, and we also include the Casey’s name on our sub-branded products as well,” he said.
Driving Sales
With C-stores in growth mode, they are building the assortments off of recent successes. But what factors have been key to the success?
TXB’s Smartt said there are several factors to the success of private brand products at his stores. They include strong packaging design, product quality and the uniqueness of flavors offered. And he’s received positive feedback directly from shoppers during his visits to stores across the chain.
“People have stopped me to tell me how much they love our rehydration products or other unique items we have developed,” Smartt explained. “It’s so exciting to get that type of input directly from our shoppers. It tells me that our team is on the right pathway.”
Echoing Smartt, Creegan said the private brand success at Love’s stems mainly from the company’s focus on providing quality products. In fact, the convenience store puts quality ahead of price as part of its effort to ensure its customers have quality products from which to choose.
“We would rather pay a little higher price and take a little bit of a margin hit to make sure we have top quality products in our private label assortment,” she said. “We also work with our analytics team to make sure we are getting the prices right on our items.”
At Casey’s, Brennan attributes the company’s success in private label to a process that is disciplined.
“You have to make sure that you have some non-negotiables when it comes to products that you’re going to put your brand on,” he said. “And that, obviously, starts with quality. And then you also have to make sure that the product pops on the shelf.”
With a focus on not just doing products that are NBEs, Brennan said Casey’s works identify white spaces across all categories that provide opportunities to develop unique items. When an opening is targeted, the company goes through a review process to see what type of products it can get in front of its shoppers.
“We know not everything is going to be a hit,” he said. “But you will never know what will be a success until we get the products in stores.”
The Future
With success comes a desire for future growth, and officials with TXB, Casey’s and Love’s are each looking forward to new opportunities to grow their respective private brand assortments.
Smartt at TXB identified several categories for growth including energy drinks, nuts and seeds, trail mix, granola bars, a new line of candy and additions to its popular general merchandise assortment that includes shirts and hats.
“We are always looking and always trying to develop as we work to expand the list of products in our pipeline,” he said. “And we’re also like any manufacturer of products. We go back and evaluate our existing products to see what is working and work to take out the slower movers. We’ll bring in new flavors to test and keep what works and remove what doesn’t.”
Creegan and her team also have their eyes on new opportunities, which includes expanding its nonconsumable product offerings such as mobile comfort (neck pillows and blankets) and various items in the travel gear category. On her radar in consumables are a variety of products including jerky, cold press juice, sunflower seed and homestyle pretzels.
Brennan is bullish on what’s ahead for private brands at Casey’s, calling the future “very bright and exciting.” Store brand products currently account for more than 9% of unit sales and gross profit dollars in the company’s grocery and general merchandise unit, and that number is expected to grow.
And the next big thing at Casey’s in private brands? Liquor.
“We’re excited about what the initial launch is going to look like and the future opportunities in the category,” he said. “As we continue to grow our private label assortment, we will continue to leverage our brand because we know our customers understand that products sold under the Casey’s brand provides them with high quality, affordable products.”
22 Store Brands l July/August 2023 l www.storebrands.com SPECIAL REPORT
Casey’s Happyness By The Pint private label ice cream.
TXB’s assortment of private label jerky is offered in various flavors.
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GROWTH OPPORTUNITY
PRIVATE BRANDS A KEY FOR C-STORES TO CONNECT WITH YOUNGER SHOPPERS
By Greg SleterLeading convenience stores across the United States continue to make headway with the ongoing development of their private label programs.
For many C-store chains, private brands are still a relatively new endeavor. But the success seen at mass and grocery stores and inside their own locations with select products has led a number of convenience stores to invest in personnel to drive product development.
But as C-stores boost their selection of private brands, what product categories should be their focus and how should they develop, merchandise and market these proprietary products to differentiate from retail competitors while giving shoppers something unique?
Chelsey Capps, director of Thought Leadership at Daymon, recently spoke with Store Brands and shared insight on the opportunities and challenges that convenience store operators face as they work to grow private brand assortments.
Q: What are some current trends related to how consumers are shopping retailers in the convenience store channel?
A: I think it’s an extremely fragmented channel by way of both ownership and geographic location. There are many towns in rural America where the local gas station or convenience store is truly their only retail outlet. So that makes C-stores fairly unique by way of having more challenges in the complexities of distribution.
Younger shoppers are, without a doubt, the largest demographic most frequently shopping at C-stores. So you’ve got 45% of Gen Z telling us that they shop at least monthly compared to just 16% of Gen Xers.
— Chelsey Capps, director of Thought Leadership at Daymon
Another element to C-stores is that younger shoppers are, without a doubt, the largest demographic most frequently shopping at C-stores. So you’ve got 45% of Gen Z telling us that they shop at least monthly compared to just 16% of Gen Xers. The other really interesting thing that transpired more recently is that higher income shoppers are also shopping at C-stores with data telling us that this group of shoppers has had the largest increase of C-store trips for Q1 of 2023.
Q: Are there any specific shopping behaviors that C-stores need to be aware of that provide opportunity for new sales?
A: There is a very interesting juxtaposition that happens inside a C-store. Personally, I hardly ever drink soda and will not buy it at the grocery store. However, when I walk inside a C-store, all of a sudden I turn into a kid again and I’m in the land of guilty pleasure and making decisions that I wouldn’t traditionally make if I was in any other channel of trade.
So that’s what makes it unique and fun, because there is this childlike element to C-stores where during a road trip you stop to buy your favorite candy bar or some ice cream. Now, is that to say that C-stores don’t have tons of opportunity to continue paving the way into more better-for-you options? Absolutely not. It’s just to
24 Store Brands l July/August 2023 l www.storebrands.com SPECIAL REPORT
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say that there is this shift in behavior the second you’re inside of the C-store environment.
Q: What is driving Gen Z to convenience stores? Will this behavior moderate over time as they age?
A: Historically we’ve seen that younger shoppers have always gravitated towards convenience stores. Today, a lot of younger shoppers are using convenience stores as almost like a quick service restaurant replacement of sorts with some of these convenience stores having strong programs within prepared food. So I think what we’re seeing is that it is really attractive to these younger shoppers. And to be honest, I think historically it always has been no matter the generation.
But I think what we’re seeing is that younger shoppers tend to skew more towards certain categories that these stores as a total channel specialize in. You’re hard-pressed to find greater energy drink sales than outside of the C-store channel. One of the key indicators for why they are so successful in attracting younger shoppers has to do with their assortment and offering a level of convenience that allows them to get in and get out easily.
Q: What is leading to more traffic from higher-income shoppers?
A: There has been a shift from prepandemic until now, and that is a high percentage shift of the workforce that is either working fully at home or hybrid. This provides the higher income shopper more opportunities to walk inside a C-store and pick up a snack or beverage.
Q: From a category standpoint, as C-stores look for growth in private label, are there certain categories that should be their focus?
A: I think the ubiquitous categories such as nuts and water are where you start. However, innovation is another
really critical play for many retailers, specifically with the regional retailers where they have distribution challenges. So private label can really offer an opportunity to drive innovation and develop into the white space or fill a gap that is currently not served at their retailer today.
It is also critical as C-stores are developing private brand programs to think beyond the national brand equivalent. They need to strategically lean into private label with a strong program and strategy that is focused on innovation. Having national brand equivalents is not going to drive newness and excitement the same way that innovating will.
Q: How should convenience stores merchandise and market their private label assortments to drive attention to their assortment?
A: It’s critical for C-stores to really know their customers. For example, a candy set that works in one part of the country may need to be
set differently in another part of the country. Understanding consumer differences from a regional basis is important to think about when developing a merchandising plan and product strategy mix.
On the product side, I would suggest leaning into flavor innovation. At Daymon, we have seen some bestin-class C-stores with strong private brand programs that are really innovating with flavors. Developing headturning, bold flavors for younger shoppers will drive newness and excitement.
Q: Is there an opportunity for convenience stores to use private label programs to expand into categories they currently do not offer?
A: C-stores have gotten a lot better at identifying opportunities for growth. For example, the health and wellness segment and offering betterfor-your options are just a few that provide new opportunities to connect with consumers.
26 Store Brands l July/August 2023 l www.storebrands.com SPECIAL REPORT
Love’s Travel Stops offers a broad selection of candy and snacks sold under its private brand.
Italian Passion Meets Sustainable Production
“Many consumers are concerned about sustainability and make purchase decisions based on consumer goods companies’ and retailers’ commitment to eco-consciousness.”
That proclamation, from a January 2023 report by research firm Doppio, underscores why offering sustainable products is important for grocery retailers today. Data from that report reinforce just how key sustainability can be: 37% of shoppers interviewed said they would be willing to pay a premium of 11% to 17% for sustainable options.1
Southern Italy-based The La Doria Group knows the time is right for pursuing a path focused on sustainable production.
“We are committed to operating with respect for people and the environment during all stages of the production and distribution chain,” says Antonio Ferraioli, Chief Executive Officer of The La Doria Group. “We produce high-quality private label tomato products and pulses, pursuing a sustainable development model in the process.”
THE MISSION
Setting emission reduction targets based on scientifically sound goals and centering activities around what is good for both people and the planet are the practical ways in which La Doria is addressing sustainability — climate change, in particular.
Earlier this year, the company confirmed what Ferraioli calls “an ambitious investment plan.” Reducing its carbon footprint is a key component.
“We are aware that the majority of our carbon footprint is made up of emissions from our supply chain, and in the near future our efforts will be focused on this aspect, asking our partners for concrete support,” Ferraioli says.
PRODUCT SPECIFIC INITIATIVES
While La Doria’s sustainability initiatives are prevalent companywide, they are particularly noteworthy in the company’s tomatoes (100% cultivated in Italy) and pulses. For example, La Doria monitors tomato producers in Puglia, Basilicata, Campania and Lazio to ensure they comply with the company’s ethics code in terms of the environment, human rights and workplace practices.
“The collaborative relationships and ongoing contact with tomato suppliers have enabled the Group to guarantee continuous product quality improvements and the minimization of waste,” says Ferraioli, who notes that collaboration with the businesses growing the tomatoes begins with the supply of the seeds. “Subsequently, collaboration is undertaken with the farmers on the plant protection treatments to be used, the technologies to be introduced for these treatments, and the efficient use of resources — for example, water for irrigation.”
Pulses are purchased all over the world to support economic
and geographical sustainability in the constant quest for higher quality, he adds.
LOOKING AHEAD
La Doria formalized its commitment to sustainability in its 2023-2030 Sustainability Plan.
Ensuring access to healthy, affordable and sustainable food; tackling climate change; protecting the environment and preserving biodiversity; ensuring fair economic compensation in the food chain; and strengthening organic farming are the ambitious goals laid out in that plan.
“We have made a lot of progress toward those goals, but we still have a long road ahead of us,” Ferraioli says. “We must keep concentrating on cutting energy consumption and reducing waste in the operating activities at our facilities and create an inclusive environment and a corporate culture that encompasses the full range of our employees’ and their talents.”
1Doppio, January 2023 “Digital Grocery Performance Scorecard”
Tracking Progress
La Doria’s Sustainable Development Goals encompass social, economic and environmental components.
“We believe that three words can effectively tell the sustainability story of our company and encapsulate the issues that are most relevant to us: land, commitment and passion,” says Antonio Ferraioli, Chief Executive Officer of The La Doria Group.
Highlight of progress made in those areas in 2022 include:
LAND
100% of La Doria’s products are of guaranteed quality according to international food safety standards
100% traceability of products
98% of waste recycled
COMMITMENT
53 ethical field audits carried out over two years
98.8% of metal can requirements satisfied internally
17km average distance from most-used outsourced warehouses
94% economic value generated distributed to our stakeholders
PASSION
100% fresh Italian tomatoes
100% products made at our facilities in Italy
44% energy needs satisfied internally
18 top Italian and overseas clients with us for at least ten years
ADVERTORIAL
FOR MORE INFORMATION,VISIT www.gruppoladoria.it OR EMAIL commerciale.estero@gruppoladoria.it.
SPICE IT UP
RETAILERS AND SUPPLIERS ARE CONTINUING TO CRAFT NEW AND UNIQUE FLAVOR PROFILES TO MEET CONSUMERS’ EVOLVING NEEDS.
By Zachary RussellTwo trends born out of the COVID-19 pandemic that continue to impact how retailers aim to connect with consumers are snacking and home cooking, and both are having a positive impact on the dips, sauces and condiments category.
As reported in the April/June issue of Store Brands, research shows that 49% of consumers are snacking at least three times per day, an increase of 4% over the past two years, and more consumers are opting for private brands to offset the higher prices of national brand snacks.
To no surprise, home cooking interest exploded in the spring of 2020, and continues to be fueled by social media trends and recipes. According to a 2022 survey from Taste of Home, 60% of respondents said they cook at home five or more times per week, while 81% of respondents said they enjoyed cooking at home more now than before the pandemic.
Today, whether making sandwiches for lunch, pasta for dinner or snacks between meals, consumers are looking for new ways to spice up food and make the cooking process more tasty and convenient.
Amazon Fresh recently detailed the summer shopping habits of its customers in its first-ever Cart Report. While traditional condiments like mayonnaise, ketchup and mustard were popular among shoppers, the grocer’s private
label hummus, salsa and queso also saw sales increase. Garlic, roasted red pepper, jalapeno and classic hummus varieties, chunky tomato salsa, tomato sauce and chili hot sauce were among the most popular dips and sauces.
Melodie Beal, head of Culinary Development at Amazon Fresh, said the retailer begins its product development process by researching what dips, sauces and condiments people are eating and figuring out how those dishes or flavors can be placed within the company’s product menu.
“We think about how we can create a unique experience for the customer and have several ‘cuttings’, which is where we taste all of the chefs’ creations,” said Beal. “Once we have the perfect recipe, our private brands team works to figure out how we can make that recipe at scale and what the packaging of the food item will look like for our customers on shelves. Once it hits shelves, we’re constantly refining and evolving our menu based on customer feedback, industry trends and hearing what our customers are looking for in a product.”
At discount retailer Save A Lot, customers have shifted toward private label as inflation remained very high for the past year, despite some recent cooling. The grocer says it has seen private label sales of core condiments such as mayonnaise rise 35% year-over-year. While staple items are performing well, Alicia Cook, category director of
30 Store Brands l July/August 2023 l www.storebrands.com
DIPS, SAUCES & CONDIMENTS
Amazon Fresh shoppers are gravitating towards the grocer’s hummus varieties.
Center Store at Save A Lot, said the retailer is always looking for ways to expand the collection.
“While we keep our core everyday flavor profiles set fairly consistent with only the top selling flavors per item, we like to add variety to our total assortment through limited time offerings in weekly ads and seasonal programs,” said Cook. “We have been successful in being able to offer additional flavor profiles through these programs and continue to see growth in bold flavors, particularly within ranch dressings, BBQ sauces and marinades. We’re also exploring other new items, including the launch of a private label chicken dipping sauce later this year. We continue to see this category grow and have tested this item in private label previously as an in-and-out rotational item.”
During the summer months, as shoppers look for bargains on products for vacations, road trips and barbecues, Save A Lot makes sure its private label condiments are front-and-center, with stores cross-promoting items through in-store displays, with a focus on merchandising condiments in the meat section.
“We have a strong fresh meat program, cut fresh daily in every store, and take advantage of the traffic through that department to build customer basket size through crossmerchandising,” Cook said. “Specifically, during the summer months, we also focus on pre-built pallet displays for key condiment items in store to make it easy for operators to build displays with the least amount of labor possible. Occasionally our private label items feature recipes on the packaging and we use that opportunity to cross-promote other items throughout the store by incorporating our private label items in those recipes.”
As retailers take steps to meet the ever-evolving needs of their shoppers, product suppliers are also working to develop unique flavor profiles to help consumers enhance their home cooking experience.
“People who love good food, but who have no time to cook… they have sophisticated palettes, but they want to make things easy,” said Nancy Wekselbaum, owner of The Gracious Gourmet, a Connecticut-based company that offers a variety of savory tapenades, spreads and pestos, as well as sweet jams, jellies and fruit spreads.
She cited products such as sun dried tomato pesto with Calabrian chili peppers, Hatch Chile pesto and the company’s various fruit spreads as Gracious Gourmet items that bring unique flavors to everyday meals. The company works with retailers of all sizes to bring new private label items to shelves.
Wekselbaum said that her love of food and cooking at a young age is what drives her when creating new products.
“Since I was nine years old, I have been interested in cooking,” she said. “I believe that when you start with super high quality ingredients, you end up with a very,
very high quality product. An example of that is our lemon artichoke pesto and our artichoke Parmesan tapenade. We do not use artichoke quarters or pieces with the leaves on them. I only use the artichoke bottom. So the end result is a much more refined product.”
In addition to coming up with unique flavor pairs for the company’s dips, sauces and condiments, Wekselbaum said that catering to certain flavor trends is important when creating new items, while still offering something for all consumers.
“I think the younger consumers are looking for spicier products these days,” she said. “Using different chili peppers, spices and herbs [in products]…I think the spicy trend is definitely here. Even though spicy food is a trend, there are certain people who love it and there are people who don’t like spice. We are trying to introduce products to have a little ‘shadow of spice’ because I think that adds an interest that is trending in the market and I don’t think that’s going to go away anytime soon.”
At Casa Visco, a New York-based manufacturer of private label pasta and pizza sauces, innovation plays a key role in product development. Despite some production challenges due to drought-impacted tomato growing conditions in California, the company looks for new ways to spice up the category, which is often dominated by traditional marinara offerings.
“I’m very connected to our local and regional food system,” said Adine Viscusi, president of Casa Visco. “We did a garden vegetable sauce that’s got 12 fresh vegetables in it, it’s almost like a vegetable stew.”
Another sauce, Global Spice, features Asian spices, bringing non-traditional flavors to the pasta sauce category, which allows retailers to stand out from the pack with their private label collections.
“We put in Korean chili powder and sriracha and soy sauce. It’s really just fra diavolo, but if you like sriracha, you can tease out that flavor,” said Viscusi. “Soy sauce gives a nice umami blend, and then that Korean chili powder hits your taste buds differently than a red crushed chili or a red pepper flake. It’s a heat that kind of builds. We’re always trying to come up with new and unique sauces that differentiate us. We’re a little bit ahead of our time, and it’s really hard to be innovative and unique when you’re a small- to medium-sized manufacturer.”
Viscusi added that with many Americans continuing to cook most of their meals at home, Casa Visco is well-positioned to help retailers meet the needs of their customers while bringing new flavors to the sauce aisle.
“Once people start cooking at home and realize it can save money, you can control what you’re eating and what you’re feeding your family, I think there’s a real continuing look for that kind of comfort and ease,” she said.
www.storebrands.com l July/August 2023 l Store Brands 31
The Gracious Gourmet manufactures unique products that spice up home cooking.
WAVING THE FLAG
GROWING CHALLENGES WITH OVERSEAS PRODUCT SOURCING IS PUTTING A RENEWED FOCUS ON DOMESTIC MANUFACTURING
By Greg SleterExpanding America’s manufacturing base as it pertains to everyday consumer packaged goods is a concept that has been much discussed, but the cost savings offered by making goods in China and other Asian countries has been the big hurdle to any major reshoring effort.
Today, global political issues, most notably rising tensions with China, and the continual review by retailers and suppliers alike of the challenges the pandemic presented with obtaining goods from overseas, has sparked a renewed effort to expand the manufacturing base in the United States.
Additionally, another significant factor in the conversation is the price of importing products today. From high transportation costs to labor issues and the challenges of expediting products through major U.S. ports, retailers are reviewing their total costs and finding that manufacturing outside the U.S. may not be as cost effective as it was in past years.
“Our goal is always to provide the best quality (products) that we can to our members at the lowest cost of goods,” said Emily Detwiler, executive director of Associated Wholesale Grocers’ AWG Brands. “Many times that comes simply by working through the logistics
of having products come from the closest possible places. When you think about it from that perspective, proximity is a huge component for us in being able to provide quality products at great prices for our member-owners.”
For companies such as AWG seeking domestic suppliers of products that are nearby, there are growing options. For example, companies such as Simmons Pet Foods and G&S Foods have either previously expanded or are in the midst of growing their manufacturing efforts in the U.S.
The $500 million strategic growth plan at Simmons included significant investments in manufacturing at several facilities in the Midwest. This included installation of a fourth high-speed canning line at its manufacturing facility in Emporia, Kan., and a second production line of canned pet food at its Dubuque, Iowa, plant. Additionally, the company opened a 750,000-square-foot facility in Edgerton, Kan., focused on meeting demand for multiand variety-packed pet food products.
G&S Food earlier this year broke ground on its new 348,344-square-foot plant in Hanover, Pa. With a 2024 grand opening target date, company officials previously told Store Brands the new plant will allow the company to be more nimble and open new opportunities to expand its private label product assortment.
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MADE IN AMERICA
Importing challenges are leading to a renewed interest in Americanmade products
While some companies are making investments to expand their domestic manufacturing, there are still challenges that are impacting the overall effort. Harry Moser, founder and president of Reshoring Initiative, an organization focused on bringing manufacturing back to the U.S., said more companies need to look at the total cost of making products overseas.
“The reason the work was offshored in the first place was that manufacturing costs in the U.S. were typically 40% more than in China,” he said. “So companies thought, “why would I spend that much more?’”
Although there is still a gap in what it costs to produce items in China when compared to the U.S., Moser encourages product suppliers and retailers to go beyond looking at only the price of the product being made. The focus, he said, needs to be on total cost of ownership that includes freight, cost of carrying inventory and even availability of labor, the latter of which has been a long-term issue that was exacerbated by the pandemic.
“For years, manufacturing has had (labor) shortages,” Moser said. “The challenge today is that if one wanted to increase U.S. manufacturing by 40%, which is our goal and would balance the trade deficit, we would need upwards of 6 million people to hire. Unfortunately, they’re not there.”
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Our goal is always to provide the best quality (products) that we can to our members at the lowest cost of goods. Many times that comes simply by working through the logistics of having products come from the closest possible places. When you think about it from that perspective, proximity is a huge component for us in being able to provide quality products at great prices for our member-owners.
— Emily Detwiler, executive director of Associated Wholesale Grocers’ AWG Brands
Related to labor shortages, Detwiler noted that her team is also challenged to find suppliers that can take on additional business as many are running at capacity.
“There are some situations where a company’s production facility can’t handle much more while others are in need of updating,” she explained. “But suppliers are challenged to find enough people to finish production runs. I heard about this very issue from a supplier during a recent meeting. They are continuing to face labor shortages.”
Moser noted recent statistics show that college enrollment is down 15% while enrollment in apprenticeship programs are up nearly 50%. Although much of that growth with apprenticeship programs is in construction, there is growing recognition that more needs to be done to attract high school graduates to careers that traditionally have been considered blue collar jobs.
He also pointed to an effort by the federal government in recent years to work with local colleges to train workers. For example, Moser said if a company builds a new factory in a given community, funding from the federal government will be used to support programs at a nearby community college to train workers for jobs in the factory.
Worker shortages are also impacting supply chain, forcing some to develop solutions that ensure the flow of goods is continual and cost effective.
For example, Detwiler noted that when looking for a specific product, AWG may work with multiple suppliers in the same category that are in specific parts of the country and located close to the company’s warehouses. Doing so cuts down on travel time and also helps keep transportation costs in check.
As retailers work to overcome challenges of moving goods from domestic manufacturers to their distribution
centers, the role of third party logistic (3PL) providers could grow further. In addition to providing solutions to current-day labor shortages through the use of technology, retailers are now shipping less than full loads of products in an effort to contain costs and suppliers are looking for ways to meet this demand.
“A lot of manufacturers have realized that outsourcing their supply chain to a 3PL has been really beneficial,” said Kevin Williamson, chief executive officer at RJW Logistics Group. “The suppliers are experts at manufacturing and not necessarily supply chain.”
He noted that 3PLs are laser-focused on dealing with supply chain issues and are able to reduce the cost of moving goods through the network. This cost reduction could further balance the total cost of supplying products to retailers and make domestic manufacturing more competitive with overseas suppliers.
34 Store Brands l July/August 2023 l www.storebrands.com MADE IN AMERICA
Manufacturing capacity is a challenge for some U.S. companies looking to expand domestic production.
A lot of manufacturers have realized that outsourcing their supply chain to a 3PL has been really beneficial. The suppliers are experts at manufacturing and not necessarily supply chain.
— Kevin Williamson, chief executive officer at RJW Logistics Group
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