Store Brands - Dec 2017 by ensembleiq

Judith Spires inspires

Private Label Trade Show coverage

Trend Watch 2018 December 2017 | www.storebrands.com

Amazon doesnâ&#x20AC;&#x2122;t just want to be a player in grocery, it wants to rule the retail world with private brands playing a major role

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Volume 39 No. 12 December 2017

CONTENTS

17 TREND WATCH MANUAL 18 Dips 20 Cold-brew coffee 22 Freeze-dried fruit 24 Ethnic/Indian food 26 Household fragrances 28 Frozen fruit 30 Frozen meals

32 Ketchup and barbecue sauce

COVER STORY King of the jungle Amazon doesn’t just want to be a player in grocery, it wants to rule the retail world — with private brands playing a major role

34 Package labels 36 Logistics 38 Packaging/ Nutrition supplements 40 Olive oil 42 Oral care

FEATURES

44 Paper products

11 SHOW WRAP-UP

A show of force

46 Pet products

PLMA’s annual gathering brings together private brand vendors, retailers and experts, fostering collaboration on myriad issues

48 Custards and pudding 50 Single-serve coffee 52 Soup 54 Turkey and meat

DEPARTMENTS

56 Supply chain

6 Editor’s Note

28 18

42 34

52 46

Store Brands (ISSN-0190-9851; USPS # 0488-370) is published monthly by EnsembleIQ, 570 Lake Cook Rd., Deerfield, IL 60015. Subscriptions: One year, $95; two years, $146. One year, Canada $112; two years, Canada $150, One year, foreign $175; two years, foreign $285. Payable in advance with a bank draft drawn on a US bank in US funds. Single copies $10, except foreign, where postage will be added. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@ wrightsmedia.com or (877) 652-5295. Canada Post: Canada returns to be sent to IDS, P.O. Box 456, Niagara Falls, ON, L2E6V2. Periodicals postage rates paid at Deerfield, IL and additional mailing offices. Printed in USA. POSTMASTER: send all address changes to Store Brands PO Box 1842 Lowell MA 01853. Copyright 2017 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. 4

Store Brands / December 2017 / www.storebrands.com

EDITOR’S NOTE Business Intelligence for an Evolving Market

570 Lake Cook Rd. Suite 310, Deerfield, IL 60015 (224) 632-8200 • Fax: (224) 632-8266

Senior Vice President/Group Brand Director 917-859-3619

PLAYING THE GROCERY GAME

Katie Brennan

kbrennan@ensembleIQ.com

EDITORIAL Editor-in-Chief

Lawrence Aylward

(330) 635-2586

laylward@ensembleIQ.com

Managing Editor

Carolyn Schierhorn

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Contributing Writers

Judith Spires’ keynote address at the Private Label Trade Show was supposed to end at 9 a.m. At 9:15, the chairman and CEO of Parsippany, N.J.-based Kings & Balducci’s Supermarkets was still talking. No complaints here. If you could harvest the passion that Spires brought to the packed room and pass it out to attendees, everybody would have left with full baskets. If there is anybody who was born to be in the grocery business, it is Spires, the daughter of an Acme Markets truck driver. Spires worked as a part-time cashier at an Acme Markets store in Malvern, Pa., to help pay for college. She enjoyed it so much that she told her father she wanted to be a grocery store manager after graduating. Of course, she went on to become much more than that. I love the Christmas story that Spires told about being a little girl and asking Santa Claus for a toy grocery store stand, when all of her friends asked for Easy-Bake Ovens, because the story gives insight into Spires’ creative marketing and merchandising mind, a reason she is regarded as an industry trailblazer. Santa delivered the toy grocery stand, but there was a problem — none of Spires’ friends wanted to play grocery with her. But rather than mope and wish she had never asked for the present, Spires got to thinking of how she could persuade her friends to play with her. “In order to make my friends want to play with me, I realized I needed to offer them what we call today a compelling value proposition,” Spires said. She knew she had to offer an experience to her friends that was fun, different and provoked surprise. So she filled boxes in her grocery store stand with lollipops and other treats. She held taste tests featuring different foods and made up other games. “And guess what?” Spires said. “My friends started showing up to play.” Spires learned early on what it takes to get someone into a grocery store. You have to offer an experience that is dynamic, exclusive and enjoyable. And when there’s the slightest inkling that those influences are beginning to fade — picture Spires’ childhood friends wanting to play something else because they are getting bored playing grocery — then you change it up to keep the experience engaging. But it’s hard work and you must be willing to take risks to see what works and what doesn’t. It’s about having the ability to recognize trends early and to act on them quickly. And, yes, it’s about being able to stomach uncertainty. “You have to get comfortable with being uncomfortable,” Spires said. With 2018 upon us, many private brand prognosticators, including Spires, say that store brands should play a fundamental role in keeping grocery stores inviting. Many are hailing store brands more than ever as a great differentiator to build store traffic. So it’s up to retailers and manufacturers to work together on innovative and exclusive store brands that make sense for their collective clienteles. Retailers must be willing to invest in innovation and quality on the front end, and marketing and merchandising on the back end. “Private label growth opportunities in the current environment are immense,” Spires said. She has been playing the grocery game long enough to know.

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EVENTS • MARKETING • DIGITAL • RESEARCH • CIRCULATION CORPORATE OFFICERS Executive Chairman

Alan Glass

Chief Brand/Operating Officer Chief Financial Officer

Richard Rivera Len Farrell

Chief Business Development Officer & President, Ensemble IQ Canada President of Enterprise Solutions/ Chief Customer Officer Chief Digital Officer

Korry Stagnito Ned Bardic Joel Hughes

Chief Human Resources Officer

Greg Flores

Lawrence Aylward, Editor-in-Chief laylward@ensembleIQ.com

2015

Store Brands / December 2017 / www.storebrands.com

COVER STORY

just Amazon doesn’t er in ay pl a want to be to rule grocery, it wantsld — with or w the retail aying private brands plor role a maj

With its acquisition of Whole Foods Market for $13.7 billion in cash last summer, it’s evident that Amazon is hungry for a slice of the $668 billion grocery market. But just how big of a bite does Amazon want to take of the market? And how much of a stake will Amazon, already a major player in several non-food private-branded categories, seek in the burgeoning consumer packaged goods store brands segment, which is reinventing itself with innovative and exclusive offerings every day? Amazon representatives would not comment on the company’s goals in grocery and private brands for this story, but several industry pundits predicted after Amazon’s purchase of Whole Foods that it was just a matter of time before Amazon ruled the grocery industry. But former Amazon decision maker Brittain Ladd, who left the company recently after working there for two years where he helped develop strategies to expand Amazon Fresh and Amazon Pantry, says that while Amazon has the potential to surpass Walmart and become the nation’s top grocer, he is not so certain the Seattlebased company will attempt to do so. BY LAWRENCE AYLWARD www.storebrands.com / December 2017 / Store Brands

COVER STORY: AMAZON Through its 460 brick-and-mortar stores received in the Whole Foods deal and its online dominance, Amazon wants to become a one-stop shop for many retail things, from grocery to electronics to books to apparel and to furniture, Ladd says, with private brands playing a key role across the board. “As Amazon convinces more of its customers to turn to it for grocery, its value proposition increases dramatically as does the company’s competitive position,” says Ladd, now a Seattle-based consultant who specializes in private brands and other retail segments. Amazon and Whole Foods together own about 1.4 percent of U.S. grocery market share, with Walmart leading at 14.46 percent, according to GlobalData Retail. Private brand consultant Todd Maute, a partner with New York-based brand agency CBX, says his “gut feeling” tells him that Amazon doesn’t want to rule the grocery world. But ruling the retail world is another matter. “As Amazon continues to expand into more and more categories … that is where I think Amazon will rule the world,” he adds. “I think Amazon is just going to continue to go after one segment of business after another.” Amazon Founder and CEO Jeff Bezos realized that just selling groceries online will not allow the company to capture much grocery market share, which is why Amazon purchased Whole Foods. So now Amazon has gone to market in grocery with a powerful one-two punch. And as creative as Amazon has been in the past to

X AUTE, CB — TODD M

Store Brands / December 2017 / www.storebrands.com

attract new customers, consumers can expect even more retail ingenuity as Amazon synchronizes the synergies of getting consumers to come to its physical stores while continuing to shop online. “Amazon is obsessively interested in getting its customers to buy more,” says Bill Bishop, co-founder of Brick Meets Click, a Barrington, Ill.-based consulting firm. “Amazon wants to invent a brand new distribution system. But they just don’t want to invent it, Amazon wants to own it.” Ladd expects Amazon’s market share to grow in grocery, but not through an all-out onslaught. Amazon is already the nation’s largest online grocer, even though e-commerce grocery sales currently account for less than 3 percent of grocery and consumable sales. But through its online subscription services, such as its offering of free streaming video and music with a Prime membership, Ladd says Amazon will continue to secure more grocery customers online. At the store level, Ladd believes Amazon will offer exclusive products that can’t be purchased online to get more customers into stores. Amazon is also straightening out the technical hiccups it had with Amazon Go, its Seattle-based brick-andmortar store that allows shoppers to check in via a mobile app, take the products they want and automatically pay upon leaving, all without scanning barcodes or waiting in checkout lines. Amazon may even deploy the technology at its Whole Foods stores. SO WHAT DOES Amazon’s grocery business mean for private brands in general? A boon, perhaps. Amazon introduced its first own brands for food and household items in the second half of 2016. The lines include Wickedly Prime, Happy Bear, Presto! and Mama Bear. Wickedly Prime features more premium items, such as soup, nuts, herbal tea, popcorn, chips and and snacks. Happy Bear includes more mainstream items such as water, coffee and seasonings. Presto! features household items like paper towels, toilet paper and detergent. The Mama Bear line offers baby food and snacks and other items for infants. The all-important own-brand exclusive factor is evident, especially in Wickedly Prime items such as organic roasted seaweed snacks, plantain chips and ginger snap-flavored cookie spread. Presto! features many bio-based cleaners, which are innovative and attractive to millennials. Before entering grocery — and recognizing that own brands lead to better margins, which result in higher earnings — Amazon had already introduced a slew of private brands in electronics, fashion and other categories. In total, Amazon offers more than 30 private brands.

U.S. GROCERY MARKET SHARE IN 14.46%

2016

n Walmart

n Ahold Delhaize

n HEB

n Kroger

n Costco

n Dollar General

n Alberstons

n Publix

n Supervalu

n Southeastern Grocers

n Target

n Seven & I Holdings

7.17% Whole Foods

4.5%

3.89%

3.18%

2.43% 2.25% 2.12%

1.71%

Amazon

1.21% 1.16% 1.11% 1.08%

0.19%

SOURCE: GLOBALDATA RETAIL

Maute believes Amazon is approaching private brands in much the same way that traditional grocers do to drive incremental margins. “Amazon is saying it has a captive audience that is coming to it for convenience, value and variety, and it will create [grocery] brands that people will love because they love Amazon,” he states. With Whole Foods, Amazon acquired the retailer’s popular 365 Everyday Value, Whole Foods Market and Whole Paws private brands, which Amazon is also selling online. Those private brands added $700 million in sales to Amazon’s own-brand lines, which are expected to generate about $4.3 billion in sales, according to analyst Youssef Squali of SunTrust Robinson Humphrey, in a CNBC news report. By 2022, Amazon should get about $20 billion in revenue from its private-branded products, accounting for about 5 percent of total sales, Squali says. Ladd says private brands will continue to pose a “gigantic opportunity” for Amazon. Ladd expects Amazon will begin selling its own brands, such as Wickedly Prime, in Whole Foods stores. “You will see Amazon put as much of their private label products into those stores as possible because the margins are better, and it’s a good way to differentiate yourself from the competition,” he adds. Ladd also expects Amazon to continue innovating in grocery private brands.

“When Amazon enters a category, it does so with an absolute and sincere desire to create high-quality products for customers,” he adds. “Amazon will look for opportunities to enter into even more product lines as long as it can maintain high standards, add value and differentiate its offerings from other private label products on shelves from other retailers.” An advantage that Amazon has online is that it knows its customers well through its extensive data so it can build recommender systems that suggest products to people who visit its website. “Amazon has evolved and improved its recommender engine and today they master this to perfection,” according to Datafloq, a European firm that offers information, insights, knowledge and opportunities to drive innovation through data. Diana Sheehan, director of Kantar Retail’s grocery channel research team, says she also expects Amazon will continue to add more food and beverage items to its private brands. “But will Amazon do it in new products or will it capitalize on Whole Foods’ established 365 brand? I think that is the big question,” Sheehan adds. If Amazon is going to compete in grocery, “it means competing effectively with a unique and innovative private label offering,” Sheehan notes. “As such, I do believe they will continue to invest. They are investing in private brands across the board, and grocery should not be any different,” she adds. Bishop says store brands in general are “building a head of

www.storebrands.com / December 2017 / Store Brands

COVER STORY: AMAZON steam toward the next generation of private label.” He expects Amazon to be part of that next generation. “I can’t imagine that Amazon is not going to do something similar as Whole Foods 365 and skip ahead to a highly differentiated aspirational private label line, [which is] just as good but at a lower price,” he says.

AMAZON’S WICKEDLY PRIME OWN BRAND FEATURES INNOVATIVE PRODUCTS SUCH AS PLANTAIN CHIPS.

AMAZON IMMEDIATELY lowered prices on many Whole Foods’ products on the first day it officially owned the retailer, obviously trying to shed the “Whole Paycheck” label stamped on Whole Foods for its high prices. But what does the future hold for Whole Foods besides Amazon just lowering prices?

Amazon by the numbers ONLINE SALES OF AMAZON’S PRIVATE BRANDS FOR THE FIRST HALF OF 2017

AmazonBasics

$210M

Echo

$120M

Fire TV

$110M

Kindle

$75M

Amazon Elements

$9.5M

Pinzon

$6.6M

Happy Belly

$2.1M

Lark & Ro

$1.9M

Buttoned Down

$950K

Amazon Essentials

$870K

SOURCE: TECHCRUNCH

Store Brands / December 2017 / www.storebrands.com

Ladd expects Amazon to change the name of Whole Foods in the future to something akin to Amazon Prime Grocery. He also says Amazon needs to change the assortment at Whole Foods stores to make them resemble other major grocers like H-E-B, Albertsons and The Kroger Co. “I say that because Whole Foods was a failing retailer when Amazon bought it,” Ladd adds, pointing to Whole Foods’ several consecutive quarters of lost growth before Amazon purchased it. Amazon will add more brick-and-mortar stores, but Ladd predicts they will have a different look and format than Whole Foods. “It’s in Amazon’s best interest to reimagine the grocery experience in the store as well as reimagining the experience online,” he says. To differentiate itself and bring in more customers, Ladd expects Amazon to create stores that are more in its image, which could mean the stores will also sell Amazon’s private-branded brand electronics and apparel. “There is nothing preventing Amazon from building a few hundred more or 1,000 more stores,” he adds. Ladd also expects that Whole Foods CEO and Founder John Mackey will soon be gone for the business. “I think it’s in Amazon’s best interest and the best interest of Mackey if that relationship ends sooner rather than later,” Ladd says. “It’s probably painful for Mackey to watch all the changes that Amazon is going to make and has already made.” Sheehan calls Amazon “the world’s ultimate catalyst in retail.” But Sheehan also says the industry has seen this before. “Every few decades a retailer comes in and changes the game,” Sheehan says. “Twenty-five years ago we were talking about Walmart the same way. Amazon may be the trigger, but technology as a whole is forcing change in retail. This is just about the natural evolution of grocery. Amazon is the player this time, and Walmart was the player 25 years ago. In 25 years there will be another player that shakes things up.” SB Aylward, editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com.

W WRAP-UP

Show of Force

PLMA’s annual gathering brings together private brand vendors, retailers and experts, fostering collaboration on myriad issues

By Lawrence Aylward and Carolyn Schierhorn

on’t overlook Generation X. Use patterning on packaging to attract diverse shoppers. Realize the profound impact on private brands that Lidl and Amazon will have in the United States. On the afternoon of Nov. 12, the day before the 2017 Private Label Trade Show officially kicked off, the private brands professionals who packed a ballroom and smaller meeting rooms at the Hyatt Regency O’Hare gained a better understanding of consumer trends, the competitive environment, and ways to leverage marketing and merchandising tools to engage shoppers. The educational sessions, which presented a bright outlook overall for store brands, helped prepare and rev up attendees for the Nov. 13-14 trade show, held annually by the Private Label Manufacturers Association (PLMA) at the Donald E. Stephens Convention Center in Rosemont, Ill. Some 5,400 buyers and other attendees walked the exhibit halls, gleaning ideas for innovative store brand products and lines, as they reinforced existing relationships with vendors and forged new partnerships. Retailer and wholesaler registrations for the show were up 6.7 percent over last year, according to the PLMA. This year, 1,476 companies from 40 countries exhibited new products, services and solutions through 2,864 booths — a 5.1 percent increase in exhibits over 2016, the PLMA reports. Contributing to this growth were a 19 percent increase in booths by first-time exhibitors, a 22 percent increase in booths for international food pavilions and a 26 percent booth gain for non-food pavilions. The total number of trade show participants, including exhibitor personnel, surpassed 11,200. The Store Brands editorial team was there to cover the show, including seminars and speeches. Here is some of what we saw and heard:

COMPETING RETAILERS ‘SCARED STIFF’ OF LIDL, ALDI Mike Paglia began his talk with a comment about Amazon and Whole Foods Market, calling them “massively disruptive.” And then Paglia, director of retail insights for market research company Kantar, turned to the subjects of his talk during a breakfast Nov. 14. “Two retailers that are less known but are no less disruptive are Lidl and Aldi,” Paglia said. “They give us a sneak peak to see where brick and mortar retail is going.” For competing retailers, Paglia said it’s “time to lose some sleep over” Lidl and www.storebrands.com / December 2017 / Store Brands

Meet this year’s retail PLMA congratulates the winners of this year’s Salute to Excellence Awards. Each year, PLMA gives recognition to outstanding store brands products introduced on the shelves of supermarkets, drug chains, mass merchandisers, wholesale clubs and specialty retailers from coast to coast.

PLMA 2017

o t e t u l a S cellen x

More than 550 products were submitted for consideration, including food and beverages, kitchen and household, and health and beauty categories. Entries were then evaluated by a panel of professional and consumer judges for taste, performance, packaging, presentation, and value for money. Winning products once again demonstrated the creativity and innovation of today’s store brands.

AWA R DS DS

PLMA is proud to salute this year’s winning retailers and wholesalers, whose products reflect their ever-growing commitment to excellence in quality and consumer satisfaction. To see all of the winning products, go to PLMA’s special website dedicated to this year’s winners.

The Winners

The Rules

The Process

Consumers

winners

FOOD & DRINK AWARDS

Iced Beverages

Vegetarian & Vegan

Appetizers & Hors d’Oeuvres

Giant Eagle

Ahold USA

Market District™ Green Tea with Mint

Whole Foods Market 365® Organic

Limited Edition Mango Habanero Pickle Chips Asian Foods Metro

Selection™ Vermicelli Rice Noodles Breads, Rolls & Muffins Albertsons Companies

Signature Select™ Whole Wheat Naan Bread Breakfast Cereals Whole Foods Market 365®

Cakes & Pies 7-Eleven

7-Select® Go! Yum Red Velvet Topped Cake

Aldi U.S.

Little Journey Banana Rice Rusks Juices & Flavored Drinks Supervalu

BJ’s Wholesale Club

Wellsley Farms™ Sweet Italian Sausage Mexican & Latin American Foods Raley’s

Great Value™ Vanilla Original Lowfat Yogurt

HOME & HEALTH AWARDS Baby CVS Health

CVS Health™ Smarttemp® Infant Bluetooth® Thermometer Bath Fresh Thyme Farmers Market

Fresh Thyme Farmers Market Coconut Lemongrass Hand Soap Beauty Care & Cosmetics Walmart Stores

Equate™ Regular Nail Polish Remover in Spill-Proof Pump Body Care

Candy & Chocolate

Raley’s™ Organic Rice & Inca Grains Spanish Seasoning Rice Pilaf

Sobeys

Organic Foods

Children

7-Eleven

Wegmans Food Market

7-Select Organic Orange Juice

Wegmans Kids Broad Spectrum SPF 50 Sun Care Kit

Sensations by Compliments™ Swiss Dark Chocolate Caramel & Sea Salt Bar Cheeses Walmart Stores

Sam’s Choice™ Sliced Monterey Jack Cheese with Jalapenos, Habaneros & Ghost Peppers

Cookies Metro

Irresistibles™ White Chocolate Cranberry & Lemon Cookie Condiments Trader Joe’s

Trader Joe’s® Everything but the Bagel Sesame Seasoning Blend

Deli & Prepared Foods Walmart Stores

Marketside™ Chicken Apple Walnut Salad Dips Ahold USA

Own Brand Logo® S’Mores Cookie Dip

Dressings, Marinades & Oils Thrive Market

Pasta & Pasta Dishes Hipermercados Tottus

Tottus Fusilli al Huevo (Egg Fusilli) Pasta Sauces Weis Markets

Weis Organics™ Tomato Basil Organic Pasta Sauce Pizza

Thrive Market

Thrive Market Tea Tree Essential Oil

Hair Care Whole Foods Market

365® Lavender Shampoo

Home Topco

Simply Done™ Broad Tip Washable Markers Kitchen & Cooking (Tie)

7-Eleven

Target

7-Select Supreme Thin Crust Pizza

Threshold™ 10” Cast Iron Skillet

Side Dishes

Kitchen & Cooking (Tie)

Sobeys

Wegmans Food Market

Sensations by Compliments™ Wegmans Creamy Broccoli Service for 8 Mini Potato Gratins Premium Plastic Sets Soda & Flavored Waters

Laundry & Cleaning

Albertsons Companies

Walmart Canada

Soleil by Refreshe™ Naturally Flavored Grapefruit Sparkling Water

Great Value™ Spin Mop and Bucket with Foot Pedal

Soups

Men’s Grooming

Whole Foods Market

BJ’s Wholesale Club

365 Organic Corn Poblano Chowder

Berkley Jensen® 21 Triple Blade Razors

Special Dietary Foods

OTC & Health Care

Ahold USA

Walmart Stores

Nature’s Promise™ Free From Southwestern Quinoa Healthy Eating & Natural Foods Grain Bowl with Chicken Wakefern Food Corporation Spreads Wholesome Pantry™ Organic Wakefern Food Spring Mix Salad Corporation Hot Beverages: Coffee & Cocoa Wholesome Pantry™ Creamy Almond Butter Thrive Market Thrive Market Snacks: Chips & Crisps Whole Bean Breakfast Blend Weis Markets Organic Coffee Weis Signature Collection Extra Thin Pretzels Hot Beverages: Tea Delhaize America Snacks: Nibbles & Noshes Nature’s Place® 7-Eleven Matcha Green Tea with Asian Pear 7-Select® Go! Yum Ice Cream & Frozen Novelties Kettle-Glazed Cashews with Quinoa & Fruit Brookshire’s Grocery Company Goldenbrook Mint Chocolate Chip Ice Cream Thrive Market Organic Extra Virgin Olive Oil

Manufacturers Association

Infants & Toddlers Foods

Main Dishes

Brookshire’s Sausage, Egg & Cheese Croissant Sandwiches

Essential Everyday® Lowfat Yogurt Tubes

.com

Walmart Stores

Breakfast Foods

Supervalu

Judges

Yogurt

Wegmans Food You Feel Good About® Fire Roasted Steak Cut Portabella Mushrooms

Limited Edition Coconut Craze Granola

Children’s Foods

Wegmans Food Market

Wild Harvest® Organic Sweet Greens Vegetable & Fruit Juice Blend

Brookshire’s Grocery Company

o e c n

Ingredients

Own Brand Logo® Crazed Chipotle Adobo Cooking Sauce

Equate™ Chocolate High Protein Nutritional Shake Outdoor Living & Gardening Target

Threshold™ LED String Lights Paper & Plastic Sam’s Club

Member’s Mark™ Ultra Paper Plates Pet Southeastern Grocers

Whiskers & Tails Bacon Flavor Strips Sun Care & Toiletries Rite Aid

Daylogic™ Sport Continuous Spray Sunscreen Value Pack

W WRAP-UP Aldi, regarded as deep-discount retailers although Paglia said they are much more than that. Paglia also stressed that brick and mortar retailing is not dead and that Lidl and Aldi are living proof of it. “By 2022, Aldi will be flirting with 2,500 stores [in the U.S] and almost $24 billion in volume,” he said. “Lidl, by 2022, will have more than 500 stores and do about $7 billion in volume. Both of these retailers are global behemoths.” Lidl and Aldi both originated in Germany, where their smaller-store and convenient formats and 90 percent assortment of private brands are dominant. “These are retailers that are bringing enormous momentum and capability into the United States,” Paglia said. “They have clearly reshaped the grocery scene in the UK. In the United Kingdom in 2016, Lidl drew off 100 million pounds of volume each from Tesco and Asda. Imagine if Lidl took that kind of volume away from Walmart and Kroger in a year. That’s pretty disruptive to me.” Paglia said Lidl and Aldi are ushering in an age of “hybrid stores” that defy classification. “These retailers can do multiple things as a way to give shoppers what they want,” he added. Paglia said some competing retailers of Lidl and Aldi are “scared stiff ” of them. Paglia also expects that competing retailers will ask their suppliers for similar pricing that Lidl and Aldi receives from their suppliers. “The really smart suppliers and retailers will work together to capitalize on those new stoppage points,” he added. The situation, however, could put the development of less-expensive-to-make private brands in a position of power. “While it’s also pressure on manufacturers [to lower prices], this is also good news [for their private brands],” Paglia said.

Store Brands / December 2017 / www.storebrands.info

GEN-X CONSUMERS MOST IMPORTANT FOR STORE BRANDS Because of its size and seeming uniqueness, the millennial generation garners most of the attention these days in marketing circles. But Generation X consumers, who range in age from 35 to 51, are the most important consumers for store brands right now and should not be overlooked as they sometimes are, said independent journalist and demographics expert Brad Edmondson during the show’s opening seminar on Nov. 12. Nearly 70 million strong, GenX-ers are the generation with the largest household size since many of them are currently raising children. And these GenX-headed households have many distinguishing characteristics that bode well for private brands, Edmondson added. Especially noteworthy, “GenX redefined marriage,” Edmondson emphasized. In part because the Great Recession impacted male-dominated professions such as construction and manufacturing more than female-dominated ones such as healthcare and education, 40 percent of wives in this generation earn more than their husbands. This means that fathers are sharing more of the household responsibilities in many families, including child-rearing and grocery shopping. Thus, it’s crucial to recognize the influence of GenX men in making family grocery purchases, Edmondson told his audience. In addition, more than 60 percent of GenX couples are in dual-income households. With more college education overall than any previous generation, many GenX-ers are financially successful and favor shopping at chains such as Austin, Texas-based Whole Foods Market and Rochester, N.Y.-based Wegmans Food Markets. However, a significant proportion of this generation continues to struggle economically and shops at places like Earth City, Mo-based Save-A-Lot stores. There is a growing divide between the haves and have-nots, Edmondson observed. Because Generation X grew up during the Great Recession, GenX consumers “spent their formative years being thrifty,” he said. Thus, even higher wage earners in this generation appreciate the value proposition of store brands. Also significant, only two-thirds of Generation X is married, a smaller proportion than any prior generation. Many GenX couples are cohabiting and raising children without bothering with a formal marriage certificate. Such couples do less planning for the future, Edmondson pointed out. “When you cohabit, there is more emphasis on getting by on a day-to-day basis,” he noted. “And the food budget is a top-of-mind concern.” Again, the excellent value provided by private brands appeals to such consumers, he added.

SH MAKING THE CASE FOR STORE BRANDS Jim Wisner began his seminar Nov. 12 by sharing his bullish view on private brands for the next few years. “We’re starting to get into a ramp-up phase, and I think it’s going to be really exciting,” said Wisner, the president of Wisner Marketing, a consulting firm in Libertyville, Ill.. “Store brands are now more popular than national brands.” And then Wisner, a former vice president of Jewel-Osco, Shaw’s Supermarkets and Topco Associates, gave even more good news about store brands and gave reasons why manufacturers and retailers should invest invest in them. Store brand sales simply return higher gross margins per unit profits, including a 67 percent higher average gross margin, Wisner said. Store brand sales also free up capital for retailers to invest elsewhere, he noted. “On a comparable unit cost basis, inventory investment is significantly lower [with store brands],” Wisner said. “Each shift of a sale reduces capital costs and improves return on investment.” While private brands can cost a lot to develop — considering brand development, procurement, quality insurance, packaging, design, marketing and other factors — the cost of managing a store brands program is typically only about 1 to 2 percent more or less of store brands sales at cost, Wisner pointed out. By the numbers, store brands can generate a 63.7 percent return on capital investment compared to 26.6 percent for national brands, Wisner said. Store brands can also save each household an average of $714 a year and an average household with kids $969 a year, according to Wisner. Those numbers are even higher for households that are heavy buyers of store brands. Assuming that those same households spend half of the money saved on more store brands, retailers can realize an additional $1.2 million in sales annually, including about $278,000 additional margin per store, according to Wisner. Wisner stressed that retailers need to use store brand programs as an investment. “Private brands will not maintain share or grow without an appropriate level of promotional investment,” Wisner said. “There must be a measured funding strategy

W WRAP-UP

to build private brands. I’m surprised by so many retailers I talk to that don’t budget for store brands.” Private brands are getting their “fair share” of promotion in only 43 of 241 subcategories, according to a 2014 that Wisner supplied. “If we wish to achieve a 25 percent private brand penetration, then doesn’t it make sense that 25 percent of a [retailer’s] items, the facings on [retailers’] shelves, the displays in-store and the space in [retailers’] ads should be allocated to [retailers’] own brands?” Wisner asked.

If you could harvest the passion that grocery executive Judith Spires brought to the crowd that attended her keynote address at the Private Label Trade Show and pass it out to attendees, everybody would have left with full baskets. See Lawrence Aylward’s Editor’s Note column on page 6.

10 WAYS TO WIN OVER DIVERSE CONSUMERS WITH PACKAGING DESIGN The general consumer, previously a woman age 18 to 65 years old whom you could easily find on any Main Street, no longer exists, said Deborah Ginsburg, founder and CEO of Oakton, Va.-based Strategia Design, during a workshop on Nov. 12. Consumers today are highly segmented, not just by generation but also by their convictions and passions, whether its environmental activism, healthful eating, local sourcing or veganism, Ginsburg said. Although millennials have dominated marketing conversations for several years, Generation Z — individuals born between 1995 and 2009 — have begun to capture the notice of marketers because their purchasing influence is growing. Ginsburg identified 10 key packaging design strategies that are being used to win over various segments of consumers: 1. TRANSPARENCY. “People want to know everything about you,” Ginsburg said. Transparency means not just listing all of the ingredients in a product but also showing it through a partially transparent package. 2. BOLD IDENTITY. “When you’re communicating, how do you claim your space? How do you claim your identity and build on it so it’s www.storebrands.com / December 2017 / Store Brands

W WRAP-UP instantaneously recognizable?” she asked. A simple design with bold colors is an example of this strategy. 3. RETRO. “Everything old is new again,” Ginsburg noted. “We want to hark back to simpler times. We all like nostalgia.” The strategy is most effective when it’s executed in a very classy, premium way, she said. 4. PATTERN. “People are using pattern to connect with a very, very diverse audience,” Ginsburg observed. “There is just an energy and a vibrancy to it.” 5. STORYTELLING. Start-up enterprises are typically the best at storytelling on packaging because they usually have interesting, personal stories to tell, Ginsburg noted. Storytelling can be done with illustration, photography, words or humor or any combination thereof. “ 6. BACK TO BASICS. “We have been over-packaging [products] for a really long time,” she stressed. A minimalist approach to packaging will resonate more with environmentally minded consumers. 7. LOCAL. The trend toward buying locally grown or made products is starting to extend to packaging, Ginsburg said. This also ties in with the trend toward wanting unique, personalized products. She pointed out

that with a limited run of a product, such as 250 jars of a locally produced honey, each jar of the honey could be sold as if it were an artist’s limited-edition print. 8. SOCIAL IMPACT “People want to know what your purpose is,” she said. While many consumers don’t have enough money for substantial charitable giving, they would relish the opportunity to contribute to a good cause by buying products from a retailer that is having positive social impact. Companies need to tell consumers about these initiatives on packaging and through other means. 9. SUSTAINABILITY. Consumers today look for packaging made of recycled or recyclable materials, and they care about reducing food waste, Ginsburg said. 10. USER EXPERIENCE. Ginsburg showed the audience a slide of a box of candy that looked like a piano. Each key was a separately boxed chocolate. She also showed a slide of a tequila bottle that changes color when it’s put in the freezer. “This is an instantaneous experience,” she said. “People will Instagram and talk about it.” As Ginsburg noted, “store brands are the new brands.” When it comes to packaging design, “it’s time you start thinking like a brand.” SB

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TREND WATCH MANUAL A LOOK AT CURRENT AND EMERGING TRENDS CREATING STORE BRAND OPPORTUNITIES IN A NUMBER OF RETAIL CATEGORIES

TRENDWATCH DIPS

GET DISTINCT SPICIER FLAVORS AND HEALTHY INGREDIENTS ARE MAKING DIPS AN INCREASINGLY ATTRACTIVE SNACKING SOLUTION By Rich Mitchell

Dips are emerging as a prime ben-

eficiary of the widespread consumer movement to snacking. Dips sales grew 28 percent to approximately $1.6 billion between 2011 and 2016 as merchandisers sought to capitalize on changing shopper eating habits by offering more product varieties, including additional flavors and selections with healthier ingredients, reports Mintel, a global market research firm. Young adults, meanwhile, are a major category force, as persons between the ages of 18 and 34 tend to purchase greater arrays of products than older consumers and also snack more frequently, Mintel notes in its February “Chips and Dips — U.S.” report. “Those in larger households and the parents of school-age children are also likely to purchase a wide variety of snacks for both themselves and others, making parents another important target,” Mintel states. Indeed, a November 2016 online

survey of 2,000 adults found that 64 percent of respondents had purchased refrigerated dips for household members aged 18 to 34 in the previous six months, while 55 percent did so for members 35 to 54, and 37 percent purchased the dips for persons 55 and over. In addition, 64 percent of the respondents purchased non-refrigerated dips for household members 18 to 34, while 46 percent did so for members 35 to 54 and 24 percent bought the dips for persons 55 and over. Because shoppers often follow routines and are more likely to purchase familiar selections then to buy on impulse or look for new types of products, merchandisers will benefit from encouraging trial of new varieties and different combinations of chips and dips through such initiatives as in-store sampling, Mintel notes. Non-traditional flavors, including guacamole and queso, already are becoming more popular and fresh dips,

Store Brands /December 2017 / www.storebrands.com

which many shoppers perceive to be healthier than shelf-stable selections, also are generating greater interest, Mintel reports. Indeed, retailers can add to the appeal of store brands by offering selections that are distinct from the national brands while also capitalizing on shopper trends, says Jim Clark, national sales manager for Old Fashioned Foods Inc., a Mayville, Wis.-based cheese dip supplier. That includes marketing bold and spicy cheese dips, such as jalapeno, habanero and salsa con queso, as well as selections that are low in salt and monosodium glutamate (MSG), he notes. A continuing shift to all-natural and fresh ingredients will only reinforce the notion that chips and dips are an especially permissible indulgence, Mintel states. Retailers that offer store brands that match the quality of the national selections but are less expensive also will generate more business, Clark notes. “Why should consumers buy your private brand if it does not cost lower than the national brands?” he asks. Other effective merchandising tactics include the use of packaging that generates greater awareness and interest by incorporating sharp colors, large lettering, high-end graphics and images depicting how consumers can use the dips, Clark says. Situating cheese dips in different areas of stores can also garner more attention, he notes. That includes placing products in the chip and cracker aisles, leveraging off-shelf displays and having co-merchandising setups with relevant items, such as potato chips. “Fortunately, because retailers own the shelf space, they can determine where to situate private label selections for optimum sales,” he notes. “They have greater control over the category than the national brands.” SB Mitchell is a freelance writer from Wilmette, Ill.

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TRENDWATCH COLD-BREW COFFEE

THE BIG CHILL COLD BREW AN UP-AND-COMING BEVERAGE AS CONSUMERS FALL FOR THE TASTE By Dana Cvetan

Though overall coffee sales are slowing, innovative products like cold brew are sparking new life in the category, according to global market research firm Mintel. Reinvention, particularly in coldbrew and ready-to-drink, is driving coffee category growth, writes George Puro in a December 2016 Packaged Facts report, “Coffee and Ready-to-Drink Coffee: U.S. Retail Market, 9th Edition.” Though 16 percent of respondents to a Lightspeed/Mintel online survey of 1,663 adults said they drink more cold coffee than they did a year ago, 13 percent admitted they were confused about the difference between cold brew and other cold coffees. However, 10 percent said they prefer cold brew to other ready-

to-drink cold coffees, according to Mintel’s July report, “Coffee U.S.” “Cold-brew coffee is one of the fastest-growing non-alcoholic beverage categories in the U.S.,” observes Andy Renner, senior director of store brand strategy and commercialization for Heartland Food Products Group in Carmel, Ind. Citing Nielsen statistics, Renner says dollar sales of $129 million for the 52 weeks ending Oct. 28 represent a 554 percent increase over $23 million recorded two years earlier for cold-brew coffee. This growth presents a significant opportunity for private brands to introduce and grow their cold-brew coffee offerings, Renner adds. Private brands currently

Store Brands /December 2017 / www.storebrands.com

command a 3 percent dollar share of cold-brew coffee, compared to 10.1 percent of the hot coffee and 40.4 percent of the bottled water categories, says Renner, citing Euromonitor statistics. Taste is the most significant differentiator of authentic coldbrew coffee versus other liquid coffees, says Chris Brown, marketing director for Heartland Food Products Group. Made by steeping ground coffee in cold water for 12 to 24 hours, authentic cold brew is 100 percent pure — free from reconstituted coffee, coffee additives, derivatives, extracts, flavor systems and preservatives, Brown explains. Because it is made without heat or other advanced extraction methods, the resulting beverage is sweeter, softer and smoother than either hotbrewed coffee or coffee brewed cold and cut with coffee derivatives or additives, he says. Its rich, less acidic and less bitter benefits are primarily enjoyed cold, Renner says. However, in markets where it is more established, such as New Orleans, many consumers are now enjoying these same benefits in a heated cup, by adding hot water to cold brew concentrate, he reports. Heartland’s research shows that nearly 60 percent of the cold-brew category at retail is purchased by millennials. Quoting Cadent Consulting Group, Renner says 51 percent of millennials (who in a decade will outnumber baby boomers by 15 million) have no real preference for national brands, compared to 39 percent of boomers. “This trend puts retailers with private brands in position to be very successful, provided their products meet the high quality standards and shared values of this demographic,” Renner adds. SB Cvetan is a freelance writer from Barrington, Ill.

TRENDWATCH FREEZE-DRIED FRUIT

HITTING ON THE TRENDS

CATEGORY OFFERS HEALTH, CONVENIENCE AND MORE BUT EDUCATION NEEDED TO SPUR EVEN MORE DEMAND

By Lawrence Aylward

While nearly 75 percent of consumers wish there were healthier snack options, more than 75 percent agree that taste is more important than how healthy the snack is for them. Jeff Hulme, vice president of Modesto, Calif.-based Mercer Foods, believes consumers can have both attributes with freeze-dried fruit. Because the water is taken out of fruit via the freeze-dried process, the concentration and flavor of the fruit and the natural sugars within are heightened without adding sugar, Hulme explains. “So this is truly a no-added sugar claim or a free-from added sugars claim, which are both big statement trends for 2018,” Hulme says. “This is a big difference from traditional dried fruit like dried cranberries or cherries that have added sugar. Freeze-dried fruit is clean label — the ingredient is the fruit, and no sugar is added.” Chicago-based market researcher Technavio predicts that the global freeze dried foods market will grow steadily at a compound annual growth rate close to 7 percent by 2021. Hulme says category growth has been steady at Mercer Foods in both

year-over-year sales at existing accounts and new accounts. “Retailers are looking for natural and potentially organic clean label snacks and ingredients,” he says. “Freeze-dried fruit matches that requirement. For instance, freezedried sliced strawberry is just the strawberry — no added sugar and it has a great smell, flavor and crunch.” The keys to growing the category are retailer and consumer education as to what freeze-dried fruit is and what its best uses and benefits are, Hulme explains. He expects the portability of freezedried fruit and vegetables to become a trend in the next few years. There will also be continued growth in using freeze-dried fruit and vegetable toppings on cereal, oatmeal, yogurt and salad. “We also have great expectations for freeze-dried fruit and vegetables to be used more greatly in personal water and sport bottles,” he adds. “It is the most convenient way to infuse natural fruit into hydration without added sugars. Mercer Foods offers AquaFruit, which the company bills as the

easiest way to make refreshing fruit water with 100 percent real fruit. The “instant fruit water system” requires no knives, cutting board or mess, according to the company. Hulme believes more retailers want innovation in the category for private brands. “All retailers want to see ways to better deliver a product or recipe with combined products to meet consumer demand,” he says. “Freezedried fruit and vegetables are part of that innovation, either individually as on-the-go snacks or as a component of a larger idea.” Hulme says retailers, who see consumers every day, don’t necessarily want to wait for manufacturers to create innovations for them. “Retailers feel they can do it just as well with their own innovation and supplier collaboration,” he says. Freeze-dried fruit and vegetables offer sustainable components. For instance, Mercer Foods’ freezedried fruit and vegetables have a shelf life of 15 months, which saves a significant portion of consumable fruits and vegetables from not being wasted, Hulme says, noting the products can also be stored and merchandised with a limited carbon footprint. The latter is important to millennials, but Hulme points out that baby boomers are also requesting more sustainable products that also feature simple ingredients and clean labels. Millennials and baby boomers are also looking for price to match the overall value of the product. “The retail price of freeze-dried fruit is higher than canned fruit and fresh or frozen fruit, but it has 90 percent of the attributes of just-picked or frozen fruit, it does not need refrigeration, and the freeze-drying process makes it the most sustainable to the environment by far,” he adds. SB Aylward, editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com

Store Brands /December 2017 / www.storebrands.com

TRENDWATCH ETHNIC/INDIAN FOOD

ADVENTURES AWAIT RETAILERS CAN SATISFY ETHNIC FOOD LOVERS’ TASTE FOR AUTHENTIC CUISINE BY BUILDING A SOLID PRODUCT LINEUP By Dana Cvetan

International flavors are emerging as a serious influence on retail food and drink sales, according to global market intelligence firm Mintel. Dollar sales of ethnic foods rose 19 percent from 2011 to 2016 — including a 3.4 percent increase in 2016 — to reach $10 billion, according to Mintel’s March report, “International Food Trends: Spotlight on Flavor, U.S.” Growth was strong in all ethnic segments, and Mintel forecasts continuing growth through 2021. Consumers have become more adventurous in their exploration of the ethnic foods category, says Mike Ryan, vice president of sales and marketing for Indian food manufacturer Deep Foods Inc. in Union, N.J. Private brands can profit by bringing cultural diversity into their everyday offerings, Ryan says. “Ingredients, spices and simple sauces can add instant ethnic distinction to something as straightforward as a sandwich,” he adds.

Respondents to an online Lightspeed/Mintel survey of 1,926 adults prepared for Mintel’s report ranked the types of flavors they prefer in the international foods they buy at retail or order when dining out. Savory topped the list at 57 percent, hot (spicy) was cited by 46 percent, meaty by 43 percent, sweet and sour blend by 38 percent, sweet and spicy (hot) blend by 36 percent, smoked by 31 percent, herbs/herbal by 28 percent, sweet by 26 percent, fruity by 13 percent and sour by 12 percent. “The story today’s most successful brands within the Asian category tell is one of true authenticity,” Ryan says. “More specifically, the brand’s story must come to life and remains a large player in a consumer’s decision to purchase one product over its competitor. This speaks not only to the company’s history, but also to the transparency behind its products.” Once a retailer enters the niche and

Store Brands /December 2017 / www.storebrands.com

ethnic categories, it is always best to start with the basic proven items in the category, then add new and innovative SKUs once shoppers have established their love for those signature items, Ryan says. Regional food trends are popping up on consumers’ radars, he observes. “Retailers continue to realize that their shoppers crave education,” Ryan adds. “By taking advantage of brands and products that highlight the adventure inherent in worldly and regional foods, they can maximize this need.” Retailers should also know that consumers tend to eat adventurously at restaurants and then look to replicate their dining experiences at home, Ryan points out. “This presents an opportunity to introduce new and buzz-worthy flavors, product trends and functional foods.” Both millennials and baby boomers with a taste for adventure are likely to drive sales in the Asian and fusion foods category overall, Ryan believes. What’s more, as the American population becomes increasingly multicultural, a greater knowledge of and general interest in international cuisines will continue to drive consumers to worldly flavors, he adds. Indian cuisine in particular offers unique savory, sweet and bold tastes, he says. What’s more, its inherent focus on vegetables and health-centric spices such as the anti-inflammatory turmeric make it a viable dietary option for consumers who have become acutely aware of how nutrition can positively impact their health, Ryan adds. Ryan expects global flavors to dominate grocery story aisles and restaurants in the near future. Ingredient innovations that incorporate native flavors and spices into popular handheld dishes such as sandwiches and pizza can make international cuisine accessible, he adds. SB Cvetan is a freelance writer from Barrington, Ill.

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TRENDWATCH HOUSEHOLD FRAGRANCES

EVOKE AND INSPIRE PERSONALIZED FRAGRANCES CAN MAKE HOUSEHOLD PRODUCTS, FROM CLEANING SOLUTIONS TO LAUNDRY DETERGENTS, MORE ENJOYABLE TO USE, AND THEY CONTRIBUTE TO THE OVERALL AMBIENCE OF A HOME By Carolyn Schierhorn

The evocative power of fragrance has long been recognized. Think of French author Marcel Proust’s early-20th century, multipart novel “Remembrance of things Past,” in which the scent of a single madeleine (a tiny traditional cake) triggered a rush of childhood memories and reflections. And consider the current popularity of aromatherapy, a practice that claims the fragrances of various essential oils promote different mood states and even healing. In the household products sector, fragrance is playing an increasingly important role, notes Lori Miller Burns, director of marketing relations and communications for Marietta, Ga.based Arylessence. Take cleaning formulations, for example. “Fragrance is the one ingredient that product development teams can control to ensure they address the trends and preferences

customers are seeking in cleaning products,” she says. “It is also the key emotional ingredient that drives store brand repeat purchases.” What fragrances resonate with contemporary customers? “Bright, fresh, classic and clean fragrance types with notes of citrus, marine or herbal are a win with today’s consumer,” Burns says. “Many consumers are seeking new and dynamic blends of these classic types.” Cleaning solution fragrances are designed not only to make household chores less burdensome, but also to provide a lingering scent that will enhance the ambience of a home. “Household products truly become part of a home fragrance experience,” Burns says. “When you’re cleaning your countertops, for example, you want to know they are getting truly clean, but you also want a pleasant

Store Brands /December 2017 / www.storebrands.com

‘air care’ experience.” Arylessence works with retailers to create fragrances that will delight their customers, Burns states. “A strategic way to make a mark in store brand household products is to offer a fragrance experience that is unique to your specific store brand,” she suggests. One largely untapped opportunity for store brands is to offer seasonal fragrances for household products, especially surface cleaners and air fresheners, Burns notes. “This strategy will fulfill the customer’s desire for something unique,” she says. “Whether it’s the aromatic scents of the holidays such as pumpkin, cinnamon and fresh fir or the bright, sunny scents of spring and summer, customers love to add variety and inspiration with the products they use in their homes, including household and laundry products.” Fragrances for laundry products are particularly important because the scent imparted to clothing becomes part of an individual’s personal fragrance statement, Burns explains. “Laundry fragrances can be viewed as an extension of an individual’s personal care and personal fragrance preferences,” she says. With “winning fragrances that elevate the laundry experience,” store brand laundry products can easily grow market share and outperform national brands, according to Burns. Indeed, laundry fragrance is a multifaceted experience for customers. “Out of the washing machine is one fragrance touch point,” she explains. “Next is out of the dryer. And then the final fragrance experience is when your customers wears their clothing or fold and store their towels in the linen closet.” These pleasurable fragrance experiences can be touted in marketing and merchandising store brand laundry products, Burns recommends. SB Schierhorn, the managing editor of Store Brands can be reached at cschierhorn@ensensembleiq.com

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TRENDWATCH FROZEN FRUIT

BERRY GOOD OPPORTUNITY

WHILE CATEGORY SALES ARE PLATEAUING, RETAILERS CAN CAPTURE INCREASED SALES THROUGH INNOVATIVE PRIVATE BRANDS By Lawrence Aylward

While the frozen fruits category has been growing the last three to five years — thanks to consumers’ preference for convenience, healthier foods and the increased popularity of making smoothies at home — frozen fruit sales are beginning to plateau, says Alex McIntosh, vice president of sales for Wake Forest, N.C.-based Imperial Frozen Foods. So it’s time to recruit more consumers to the category by offering on-trend products, with store brands playing a major role, McIntosh says. “Retailers should not be afraid to drive innovation through private label within this category,” McIntosh says. “The brands have seen a resurgence in the last 12 months by driving innovation, but private label is slow to react and has suffered. This category is ideal for retailers to lead, not follow, with their own brands.” Sales of frozen fruit have topped $1 billion annually, up 67 percent from 2010 through 2015, according to market researcher Nielsen. Another opportunity for retailers is to educate their customers on the benefits

of frozen fruit to drive customers into the frozen foods isle, McIntosh says. “Retailers have a huge platform to push this education across from social media to print media to assist in driving new consumers into their frozen aisle,” he adds, noting that many consumers don’t realize the benefits of frozen fruit, including: • Frozen fruit can help eliminate waste. • Frozen fruit has already been triplewashed and is ready to eat straight from the bag. • Multiple studies have proven that because frozen fruit is frozen within hours of being picked, it has locked in its antioxidants and other nutrition components. Retailers can also capitalize on the increased popularity of unique fruits such as dragon fruit, jackfruit and acai, McIntosh adds. He notes that consumers are also continuing to branch out with their use of frozen fruits. “As the consumer shifts away from processed foods, we see a larger number of parents making their own baby food puree with both fruit

and vegetables, which is also helping to drive consumption within frozen fruit,” McIntosh says. McIntosh says a shift toward larger package sizes of frozen fruit — 32 ounces, 48 ounces and 64 ounces — will continue, with those sizes showing double-digit growth compared to 16-ounce packages, which are declining about 15 percent. “We are also continuing to see the decline of singular fruit sales with the consumer shifting toward blends, which are showing a 10 percent volume growth and now account for over 31 percent of the category,” McIntosh adds. “Many of these newer blends are incorporating veggies, which have a lower sugar content and are perceived by the consumer as being healthier. The other advantage is the lower cost of veggies compared to fruit so it lowers the overall product cost slightly.” McIntosh believes many retailers need to re-evaluate their merchandising strategies within the category. “It can become extremely confusing for the customer to be faced with so many similar products. For example, you do not need three brands with strawberries plus a private label,” he adds. “Variety is good, duplication is not.” McIntosh says retailers should consider merchandising with a minimum of 70 percent shelf space going to private brands. Frozen fruits are often merchandised alongside whipped topping, frozen juice and pie crusts. “However, [retailers] are missing the opportunity to merchandize alongside the vegetable section,” McIntosh says. “With the increase in blends containing veggies, we are seeing the two categories draw together. With frozen veggies being the larger of the two categories, retailers may miss the opportunity to sell fruit to vegetable consumers by not having them in the same aisle.” SB Aylward, editor-in-chief of Store Brands, can be reached at aylward@ensembleiq.com.

Store Brands /December 2017 / www.storebrands.com

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TRENDWATCH FROZEN MEALS

COOL CREATIONS RETAILERS CAN BOOST PRIVATE-BRANDED FROZEN MEAL SALES WITH EXCLUSIVE, HEALTHY OPTIONS By Dana Cvetan In the frozen meals category, the

opportunity for growth is present. Capitalize on that, say industry sources, by taking decisive action. Rockville, Md.-based market research firm Packaged Facts, a division of MarketResearch.com, advises making investments in product innovation. Drive sales with bold and unique flavors inspired by world cuisines, clean up the labels, formulate healthier nutritional profiles and accommodate special dietary concerns, the firm counsels in its September report “Frozen Food in the U.S.” Consumers shopping for prepared meals are likely to base their buying decisions on a combination of the product’s health and taste attributes, says global market research firm Mintel in its May report, “Prepared Meals U.S.” Retailers are looking for exclusivity and innovation within their private brands, so that they can offer products

that are available only at their retail locations, says Jeff Gehres, senior director of sales and product development for Holland, Mich.based Request Foods Inc., a co-packer of frozen prepared entrées, side dishes and specialty items for retail, club store and foodservice customers. “Consumers want to see ingredient statements that are clean and do not take more than a few seconds to read. Low-fat items are important to the consumer, but the product still needs to be flavorful and offer a positive eating experience,” Gehres explains. In just the past two years, the share of consumers who buy packaged frozen meal items for heating or microwaving at home has risen15 percent, and now stands at 90 percent of consumers, according to Packaged Facts. Half of consumers are buying more vegetables, 40 percent are buying

more frozen meals and pizza, and a third are buying more snacks and appetizers, Packaged Facts reports. The prepared meals category, Mintel notes, is in the midst of a modest growth period following three years of decline. Prepared meals sales of $10.5 billion in 2016 represented about a 3 percent increase over 2014 sales, according to Mintel. The firm credits the upturn to the stabilization of single-serve and multi-serve frozen meals sales, which together account for 71 percent of prepared meals category sales. Gehres sees a bright future for frozen foods, noting that consumers appreciate the positive attributes they offer. For starters, he says consumers want convenient meals that will be consistent every time they eat them. Equally important, Gehres adds, are frozen meals that taste great and offer a positive eating experience at a competitive price. The final piece of the private brand frozen meals puzzle, Gehres adds, is exclusivity. Request Foods, for example, produces more than 50 different meat lasagna products that are all exclusive recipes made for specific customers, Gehres says. In product trends, single-serve frozen meals are continuing to grow in popularity with both millennials and baby boomers, Geheres points out. Also, he adds, retailers are requesting a variety of sizes in frozen entrée products in pans and skillet bag meals. Promoting prepared meals for snacking could also advance the category, especially among young men aged 18 to 34, Mintel notes. Snack-sized portions and onthe-go packaging could help achieve this goal. SB Cvetan is a freelance writer from Barrington, Ill.

Store Brands /December 2017 / www.storebrands.com

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TRENDWATCH KETCHUP & BARBECUE SAUCE

NEW SPINS ON STANDBY PRODUCTS STAYING ON-TREND WITH FLAVORS AND WELLNESS TRAITS CAN SPUR STORE BRAND KETCHUP AND BBQ SAUCE SALES By Carolyn Schierhorn

Sales have been flat overall for ketchup and barbecue sauce, two traditional staples in the American diet, though the picture has been brighter for private brand products in these categories. In the realm of ketchup, a $766.7 million market in the United States, dollar sales for all brands increased just 0.4 percent in the 52 weeks ending Oct. 8, while sales of store brands rose nearly 1 percent, according to Chicago-based market research firm IRI. The $726.4 million BBQ sauce segment in the U.S. saw even less growth in dollar sales — 0.06 percent for all brands and 0.13 percent for store brands. In terms of unit sales, however, store brands made more significant gains when compared to all brands, with private brand ketchup rising 3 percent versus 0.06 percent for the whole category and private brand BBQ sauce increasing 0.8 percent versus an overall category decline of 0.4 percent. The reason for ketchup’s stagnant growth overall is that younger generations of adults

are gravitating toward more flavorful products and have “a growing desire to incorporate into their diets dishes and ingredients from a wider variety of cultures,” states Euromonitor International’s March 2017 report “Sauces, Dressings and Condiments in the U.S.” And though research has shown that millennials love to grill and spend more than older generations on meat for the barbecue, they also seek out unique sauces rather than just traditional favorites. The Fremont Company has risen to the challenge of developing ketchup and barbecue sauce with innovative flavor, wellness and sustainability profiles that appeal to various segments of consumers, points out Renee Hicks, director of private brand for the Fremont, Ohio-based firm. Responding to demand, the company offers organic ketchup and ketchup with natural sugar, Hicks says. “The Fremont Company is a leading manufacturer in the organic market and continues to invest in this segment with equipment upgrades, top-quality staff and formulation improvements,” she notes. Private brand ketchups are ahead of national brands in growth because they provide consumers with unique products that can be differentiators for retailers, Hicks states. Private brand ketchup manufacturers can supply retailers with “a wide portfolio of sizes and

Store Brands /December 2017 / www.storebrands.com

flavors,” she observes. “In addition, private brand ketchups are a much better value for the money.” At The Fremont Company, “we are flexible and nimble in our go-to-market strategy and develop partnerships with retailers,” Hicks says. “We work with them to meet their customers’ needs, not the needs of the masses.” To prompt younger adults to talk about ketchup, retailers should leverage social media platforms through which stories can be told about the product’s origin, recipes can be shared and consumers can post comments, Hicks suggests. “We have seen ideas online ranging from using ketchup as an ingredient in a recipe (as opposed to a topping or dipping sauce) to ketchup cupcake recipes and even everyday household uses such as shining your copper pots and pans,” she says. “Creativity is endless in this day and age with a household staple such as ketchup.” In the barbecue sauce category, consumers in all generations are looking for improved flavor and texture, not necessarily highly unusual flavors, according to Hicks. “Consumers now expect more from BBQ, including flavor and texture enhancements,” she says. “That said, consumers continue to gravitate to the established flavors within the category. We are seeing some of the ‘less core’ flavors enter the category and exit shortly thereafter.” Retailers report that core BBQ flavors continue to deliver the most sales. However, regional flavors may be experiencing some growth, Hicks notes. As in other segments, she adds, millennials and Generation Z consumers “are much more willing to try new flavors and get excited about innovation.” SB Schierhorn, the managing editor of Store Brands, can be reached at cschierhorn@ ensembleiq.com.

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TRENDWATCH PACKAGE LABELS

A STRONG IMPRESSION THE PROSPECT OF GREATER PROCESSING SPEEDS AND FLEXIBILITY, ALONG WITH LOWER OPERATING COSTS, IS FUELING INTEREST IN THE DIGITAL PRINTING OF PACKAGE LABELS By Rich Mitchell

Evolving merchandising dynamics are bolstering use of digital printing for packaging labels. Labels are forecast to account for more than 70 percent of the global digital printing for the packaging market by 2027, up from 64.1 percent in 2016, reports Future Market Insights, a London-based research and consulting firm, which also projects value and volume growth of about 500 percent during that period. Triggering activity is rising demand for consumer goods and, consequently, the need for packaging and the printing of labels on a large-scale basis, Future Market Insights notes. The technology is becoming particularly attractive to manufacturers who are seeking to print barcodes on packages in response to market concerns about counterfeit products, as well as those seeking the ability to customize each label during printing and to have the smaller volume production runs that are not possible in other printing formats, Future Market Insights states. “Manufacturers are opting for new packaging and labeling technologies that not only confirms the authenticity of their products, but also helps in endorsing the products,” the research firm states. The greater use of shrink sleeves on food, beverage, pharmaceuticals and other consumer goods also is boosting interest in the technology, Future Market Insights adds. Shrink sleeve labels cover a container from top to

bottom with 360-degree graphics, text and colors to enhance shelf appeal and brand awareness while also serving as tamper-evident seals. Digital technologies often are a lower cost and more flexible solution for printing on shrink sleeves and other labels because users are able to forgo elements that are standard in most alternative printing methods. That includes the use of specific plates for each color, and dealing with set-up times prior to running a job and several days of lead time before receiving an order, says Katelyn Bohr, marketing manager of Colordyne Technologies LLC, a Brookfield, Wis.-based manufacturer of highspeed and high-resolution digital inkjet printing systems. The technologies, meanwhile, also can enable private brand merchandisers to cut operating

Store Brands /December 2017 / www.storebrands.com

expenses by more affordably printing short-run quantities and reducing label waste, Bohr notes. “Private brands that often order large quantities of labels at one time face the threat of their inventory becoming obsolete when regulations or label designs change,” she states, adding that merchandisers can eliminate that risk with in-house, ondemand digital label products. Selecting the optimal digital technologies for their specific label printing requirements is perhaps the major challenge for private brand merchandisers seeking to implement a system, Bohr states. “With a significant amount of digital label printing options on the market, it often is difficult to know what the right solution is,” she says. Merchandisers need to consider the ink type and technology (such as a water-based inkjet or UV inkjet), and if they need in-line or off-line finishing systems or will use pre-die cut label stock, she states. Future enhancements to digital label printing technologies, meanwhile, are likely to focus on the composition and capabilities of equipment, including ink chemistry and the design of print heads, Bohr adds. SB Mitchell is freelance writer from Wilmette, Ill.

TRENDWATCH LOGISTICS

IMPROVE EFFICIENCY, SATISFY CUSTOMERS FREIGHT CONSOLIDATION PROMOTES LOGISTICAL STREAMLINING, SUSTAINABILITY

By Carolyn Schierhorn

Consumers today of all generations, but especially millennials, expect grocery retailers to focus on fresh food, and they are concerned about food waste, environmental sustainability, transparency and authenticity. These priorities, plus the Amazon.comspearheaded surge in e-commerce, are having a tremendous impact on the grocery supply chain. Long gone are the days when a customer would happily accept a “rain check” on a sold-out item in a supermarket. Out-of-stocks mean not just a temporary loss of business for one retailer, but also the increased likelihood that the inconvenienced customer will turn to the Internet the next time he or she makes a grocery purchase. In addition, intensifying competition in the grocery business has made cost control ever more important for retailers. Improving efficiencies in the supply chain has never been more critical. Indeed, grocery retailers that manufacture and distribute their own store brand products and those that import products or ingredients from other countries grapple most with the complexities of the transportation and warehousing industry. It’s no surprise then that more retailers are looking for ways to rein in their expenditures, reduce inventory levels, shorten lead times, reduce purchase order (PO) delivery windows and increase their on-time percentages and order fill rates, according to Colby Beland, vice

president of sales and marketing for CaseStack Inc., a Santa Monica, Calif.-based provider of integrated logistics solutions. One piece of good news for retailers is that in 2016, business transportation and logistics costs in the United States, which totaled nearly $1.4 trillion, declined for the first time since 2009, states “Accelerating into Uncertainty,” the title of the 28th annual State of Logistics Report, released in June by the Lombard, Ill.-based Council of Supply Chain Management Professionals. In 2016, full truckload transportation costs in the United States decreased by 1.6 percent to $269.4 billion. At the same time less-thantruckload (LTL) costs increased by 0.5 percent to $58 billion, while rail costs declined by 11 percent and water shipping costs (domestic, import and export) by 10 percent. Clearly, avoiding LTL charges is a key to improving efficiency and saving money. “Working closely with leading

Store Brands /December 2017 / www.storebrands.com

retailers, we combine your LTL deliveries with others headed to the same distribution center, store or region into one full truckload,” CaseStack states on its website. “You receive full truckload pricing for your LTL shipments.” Collaborative freight consolidation programs don’t just save money through reduced transportation and warehousing costs, but also improve on-time delivery and order fill rates, CaseStack maintains. Last year, Beland predicted that the one-day PO delivery window would be one of the most significant emerging trends in grocery logistics in 2017 and would be accompanied by increased expectations for order fillrate percentages. He was not wrong. This year, Walmart implemented a new on-time, in-full (OTIF) policy. Food and consumable suppliers need to deliver within a one-day window, while general merchandise suppliers need to comply with a twoday window. When deliveries are late or improperly packaged, financial penalties can be imposed. Other major grocery retailers, from Cincinnati-based The Kroger Co. to San Antonio, Texas-headquartered H-E-B have started or are considering similar supply chain initiatives. In this climate of heightened competition and ever more particular consumers who expect instant gratification, it makes sense to demand shorter delivery windows and better performance from suppliers as Walmart has done. To thrive in such a marketplace, smaller retailers need to boost their efficiencies and fill rates as well. Going it alone is less effective than partnering with a logistics solutions provider and freight consolidator. SB

Schierhorn, managing editor of Store Brands, can be reached at cschierhorn@ ensembleiq.com.

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TRENDWATCH PACKAGING/NUTRITIONAL SUPPLEMENTS

THE SHAPE OF THINGS TO COME EVOLVING NUTRITIONAL SUPPLEMENT FORMATS ARE TRIGGERING PACKAGING REVISIONS WHILE CREATING STRONG MERCHANDISING OPPORTUNITIES FOR PRIVATE BRANDS By Rich Mitchell

The increasingly popular gummy is having a major impact on packaging for nutritional supplements. Because the size of many supplements have grown in recent years with the rise of gummy and chewable formats, there is a greater need for packaging that can accommodate the larger selections. Demand for gummies, meanwhile, is likely to continue as 34 percent of vitamin, mineral and supplement users say they appreciate the break gummies provide from swallowing pills, and many note that they like the taste of gummies, think gummies are fun and consider them a healthy treat, reports Mintel, a global market research firm, in its September “Vitamins, Minerals & Supplements — U.S.” report. In addition, 14 percent agree that gummies are easier than pills to remember to take, meaning they may also help with regimen compliance, Mintel states.

“Younger VMS (vitamins, minerals and supplements) users hold more positive perceptions of gummies than their older counterparts,” Mintel notes. “The enjoyment adults aged 18-34 gain from gummies could improve consistent consumption among this younger group, suggesting that format variety should be promoted by marketers looking to expand penetration within this group.” Such interest and activity is resulting in a move to bottles with 53-, 63- and 70-millimeter openings instead of the previously common 45-millimeter orifices, says Marny Bielestadt, vice president of marketing for Alpha Packaging, a St. Louis-based bottle and jar manufacturer. The subsequent need for larger child-resistant closures, meanwhile, also is driving the development of containers in newer proportions, she notes. Because larger closures can increase the materials cost for packaging suppli-

Store Brands /December 2017 / www.storebrands.com

ers, there is greater interest by producers in reducing bottle weight, Bielestadt says, such as by using less material in the neck or shoulder of containers. In addition to lowering the expense of the bottles, a reduction in materials also enhances sustainability, she notes. “Companies can sometimes remove 10 to 20 percent of the plastic during production,” Bielestadt states. “As technology improves, bottles will have even lower gram weight without compromising effectiveness.” Along with changing compositions, bottles with distinct colors and labels also are becoming more prominent. Such elements can better enable store brands to stand out on shelves, she notes, but adds that to reduce shopper confusion there should be a common color for each brand. The greater use of shrink sleeves on nutritional supplement bottles also is enhancing the visual appeal of products. The plastic sleeves, which function as labels and adhere to the shape of containers, can provide full body coloration and additional space for branding and messaging while enabling the use of clear containers, which are less expensive than colored bottles, Bielestadt says. Clear designs also can include windows that allow consumers to view the products. “Many shoppers like the clarity, especially when they are buying gummies which tend to colorful,” she states. Incorporating novel bottle designs can further enhance product awareness, Bielestadt says. “Packaging in traditional shapes and sizes can look outdated,” she says, noting that it more efficient for merchandisers to use traditional round bottles but with different dimensions. “Changing to non-round shapes can slow production speeds for both labeling and the filling of bottles,” Bielestadt adds. SB Mitchell is freelance writer from Wilmette, Ill.

thletes perform best when they are prepared, and more than ever before, that preparation begins and ends with pre- and post-workout supplements. As your business grows to meet this demand, you need a packaging partner who can keep pace with you while protecting the quality and reputation of your product. Our wide range of sports nutrition packaging includes HDPE and PET jars and canisters ranging in size from 8 ounces to 2 gallons. With seven North American manufacturing locations and one in Europe, we can minimize the shipping costs to get these bottles to your ďŹ llers, and help you keep shelves stocked. Whether you deliver supplements in powder, tablet, liquid or gummy formats, Alpha Packaging has the stock product solutions to help your brand perform. We can also engineer custom packaging solutions or set your brand apart with custom colors that help it compete on retail shelves. Be a winner in sports nutrition with plastic packaging from Alpha. For more information, visit www.alphap.com/markets/sports-nutrition.php.

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TRENDWATCH OLIVE OIL

CRUSH IT INNOVATIVE PACKAGING AND MERCHANDISING COULD HELP OLIVE OIL REALIZE ITS POTENTIAL IN THE U.S. By Carolyn Schierhorn

Because of harvest-decimating conditions in the olive-producing regions of southern Europe — especially Italy, Greece and Spain — olive oil prices skyrocketed worldwide between 2014 and 2017. While the higher prices have prompted many European consumers to switch to sunflower seed oil in cooking, olive oil consumption has declined only slightly overall in the United States, where the product is regarded as a wellness-promoting specialty item, dipping 0.6 percent in unit sales in the 52 weeks ending Oct. 8, according to Chicago-based market research firm IRI. With an average price per unit of $7.04 versus $7.75 for all brands, private brand olive oil has fared better and today makes up 30.4 percent retail dollar share of the $1.2 billion U.S. olive oil market.

Dollar sales of private brand olive oil increased 6.3 percent in the 12 months prior to Oct. 8 compared to only a 1.2 percent gain in dollar sales for all brands, IRI reports. What’s more, private brand olive oil saw a 1.6 percent rise in unit sales, indicating that consumers are buying more store brand olive oil, not just paying higher prices for it. Data from the North American Olive Oil Association (NAOOA) suggest that retailers and vendors of olive oil have barely scratched the surface of its potential in the United States. U.S. households consume just one liter of olive oil each year on average versus roughly 20 liters for Greece and 12 liters for Spain and Italy. When merchandising olive oil to consumers, retailers should do more to emphasize that the product can help reduce the risk of cardiovascular disease, diabetes, cancer and inflammation, the NAOOA recommends. While many American consumers understand that extra virgin olive oil, produced through cold pressing, is of higher quality than other olive oil, they are not

Store Brands /December 2017 / www.storebrands.com

as aware of olive oil’s versatility and subtle taste differences, according to the NAOOA. “Olive oil’s taste is influenced by many of the same factors seen in the wine industry, including olive variety, where it was grown, seasonal crop conditions and how well it was handled and produced,” the association says. “There are different flavor profiles depending on when you harvest and crush,” adds Mark Coleman, senior vice president of retail sales for Catania Oils. “The longer the olive stays on the tree, the more your yield, but you’re going to get less flavor.” At a time when consumers prioritize freshness, American shoppers are beginning to understand that olive oil doesn’t have an unlimited shelf life, Coleman says. “The problem is that olive oil is the opposite of wine when it comes to the effects of aging,” he notes. “Once you pick the olives, crush them and bottle the oil, you’ve got only three to five months to capture and enjoy the beautiful flavor of something that was just pressed.” To preserve olive oil quality longer, Catania Oils is introducing a bag-inthe-box system for dispensing freshpressed extra virgin olive oil. “The two things that most negatively affect olive oil are air and light,” Coleman explains. “So what we’re doing here is eliminating both of those conditions.” Catania Oils also ensures product freshness by sourcing six months from the Northern Hemisphere and six months from the Southern Hemisphere. Nearly every kind of fat or oil can be replaced with olive oil in cooking and baking, the NAOOA states. As Coleman emphasizes, “olive oil can be used for so many things, from stir fry to marinades.” SB Schierhorn, managing editor of Store Brands, can be reached at cschierhorn@ ensembleiq.com.

TRENDWATCH ORAL CARE

SHOW YOUR TEETH STORE BRANDS THAT MEET THE DIVERGENT NEEDS OF CONSUMERS CAN ADD LUSTER TO THE MULTIFACETED ORAL CARE SECTOR By Rich Mitchell

Oral care is a category of opportunity for store brand merchandisers. With the sector experiencing steady growth and several segments ripe for strong expansion, retailers that respond to consumers’ interest in quality products at an attractive price will be in position to bolster activity. Such segments include mouthwash, a product used by just 62 percent of Americans and which had a 15 percent sales increase from 2012 to 2017, higher than the 13.6 percent total oral care category growth, reports Mintel, a global market research firm Toothpaste, which accounts for the largest share of oral care sales (38 percent), grew 2.8 percent from 2016 to 2017 and, because many Americans are not brushing twice a day, has room for greater increases, Mintel notes. In addition, products that address sensitivity are set for added sales gains. While 49 percent of Americans suffer from sensitive teeth, just 33 percent buy oral care products that are aimed at the segment, Mintel states.

“In a category with slow but steady sales growth and high penetration, factors such as brand, benefits and costs have the greatest influence in purchase decisions,” said Jana Vyleta, Mintel health and personal care analyst, in Mintel’s June “Oral Care — U.S.” report. “To maximize growth potential, stakeholders should leverage a need for sensitivity products, products offering a variety of benefits and natural positioning.” Indeed, because product cost is a major sales consideration, retailers of private brands have the ability to grab market share from the national brands, says Meggin Lamb, marketing manager of OraTech, a South Jordan, Utah-based supplier of toothpaste, mouthwash, whitening pens and whitening trays. “Consumers are educating themselves on options and comparing national brands to private brands to determine

equivalency and value,” she notes. “They expect a high-quality product at a lower cost.” More shoppers, meanwhile, are seeking health-oriented items, including all-natural selections and whitening products that are made with charcoal, coconut oil and/or organic ingredients, she says. Product packaging also can have a major impact on shoppers’ buying decisions, Lamb states, noting that presentation often affects how consumers feel about a product and whether they will try new options. “Effective and eye-catching designs draw consumers and add perceived quality and value,” she says. “If a product looks cheap, consumers may assume it is not as effective as the national brands.” Along with attractive graphics, messaging on private brand packages can spur further interest. That includes statements that encourage shoppers to compare the ingredients to those of specific national brands, Lamb says. “It demonstrates to buyers that products similar to the national brands are available at a lower price and don’t compromise quality if the product is in fact similar,” she notes, adding that promotions, such as “buy one, get one free” offers and couponing also are effective ways to draw first-time buyers and shoppers who may prefer national brands to store brands. “Private label oral care products are expanding rapidly, and it’s likely that more mass market retailers will extend their product lines to offer additional value, quality and variety,” Lamb notes. “As the interest in natural products increases, it’s likely we will see the retail landscape change to accommodate that demand.” SB Mitchell is freelance writer from Wilmette, Ill.

Store Brands /December 2017 / www.storebrands.com

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TRENDWATCH PAPER PRODUCTS

DARE TO BE DIFFERENT MANY CONSUMERS WILL PAY MORE FOR PRIVATE BRAND PAPER PRODUCTS THAT ARE FUNCTIONAL AND INNOVATIVE By Dana Cvetan

Consumers say they want functional innovations in their

household paper products, and nearly 40 percent are willing to spend more to get them, according to global market intelligence firm Mintel. They seek better-quality products with enhanced durability, strength and comfort. They’d like convenience-oriented products that simplify cleaning, such as paper towels with antibacterial benefits. They’d like to see skincare benefits added to their moist towelettes, Mintel notes in its February report, “Household Paper Products US.” It is up to paper goods manufacturers to bring innovation and differentiation to the category by making use of consumer insights and watching trends closely, says Marc Robinson, vice president of business development for Global

Tissue Group Inc. in Medford, N.Y. “We all talk about unique segments and emerging trends, but only the forward-thinking retailers and companies can partner to try new product tiers or packs. Products that meet or exceed consumer needs are the new metrics, versus just basis weight and item sizes,” Robinson explains. According to a Lightspeed GMI/ Mintel online survey of 1,956 adults who bought household paper products within the past six months, respondents said they would pay more for the following attributes: paper towels with antibacterial benefits (31 percent); paper products that were better for the environment (29 percent); paper towels infused with surface cleaner (29 percent); moist towelettes/wipes with added skincare benefits such as those that were

Store Brands /December 2017 / www.storebrands.com

soothing or moisturizing (28 percent); water-activated paper towels with dishwashing soap (25 percent); and reusable paper towels (24 percent). Global Tissue Group, says Robinson, uses new fiber products and additives to manufacture products that differentiate themselves from the national brands. Three things will drive the household paper products category over the next 12 to 24 months, Robinson declares are: “Displayready items that can be prominently displayed with large impactful events, theme-related products for holidays and sporting events, and expansion to the fast-growing ultra/ premium categories with innovation and large packs.” He expects retailers to place ever more focus on using their own labels to drive volume versus national brands, with store brand products that are national brand equivalent (NBE) or better. “Store brands will be the future driver for all retailers to compete against all channels,” Robinson adds. “Paper and tissue provides 50 percent on average greater margins versus branded; however, branded companies convince retailers to use brands to drive traffic and low margins. Many retailers are using their store brand and staying or limiting branded pressure.” If the products are worthy, store brands inspire consumer loyalty to the retailer in a way national brands cannot because they are not exclusive to the retailer, Robinson points out. Millennial consumers hold the key to the future of store brands, says Robinson. They want products that are easy to purchase. They are focused on quality versus the name on the label. They are willing to try new, innovative products, especially if retailers support their brands with digital and social media. SB Cvetan is a freelance writer from Barrington, Ill.

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TRENDWATCH PET PRODUCTS

5 FOODIE-INSPIRED PET FOOD TRENDS HOW AMERICANS’ EATING HABITS ARE TRANSLATING TO THE PET FOOD AISLE Gluten-free. Organic. Ingredients we can pronounce. Human food has done a complete 180 in recent decades, turning its back on Spam, Jell-O and other culinary conveniences of yesteryear. Today’s Americans want their meals fresh, lean and made of interesting ingredients, harvested from the farm down the road. Just how have our expectations for “healthy food” impacted what Americans feed their pets? Here are five examples of how human health trends and foodie fads are influencing the pet food market and some of the science behind each. 1. Grain-free: Gluten-free labels have become a popular sight in grocery stores nationwide. Similarly, the pet food aisle has seen grain-free sales soar with 45 percent of pet food products released in 2015 being “grain-free.” As human diets have moved away from carbs and gluten, pet food manufacturers have swapped grain for greens, potatoes,

chickpeas and sweet potatoes. However, the nutritional value of a grain-free diet has failed to gain consensus among veterinarians. For example, some dogs benefit from the high-fiber content of grains, while others may truly have a dietary intolerance or allergy. The topic will continue to divide experts until studies are conducted to measure long-term effects on animal health. 2. Organic and GMO-Free: As organic produce becomes a mainstay in grocery stores, non-GMO pet food products, which are often categorized as natural products, have seen growth as well. As of 2016, organic pet food accounted for about 4 percent of the U.S. market; however, it has seen popularity in certain settings. 3. New proteins: Although vegetarian-inclined diets have seen a bump in recent years, Americans are still focused on protein — only now the concern is not so much the amount of protein but what kind. Forty-one percent of registered dieticians feel that plant-based proteins are becoming more popular at the dinner table, and many believe that we’ll see an uptick in seafood, nuts and dairy consumption rates among humans. When it comes to pet food, dog and cat owners are looking to satiate their companions’ carnivorous instincts with novel protein alternatives. There is a concern with chicken allergies taking hold of the market.

Store Brands /December 2017 / www.storebrands.com

This, combined with owners’ desire to provide their pets with a variety of flavors, has inspired pet food manufacturers to begin offering exotic protein sources including bison, rabbit, kangaroo and alligator. 4. Local sourcing: Americans have jumped on the farm-to-table bandwagon with newfound expectations of transparency when it comes to what our food is made of and where it comes from. The pet food industry has also seen an inclination toward products “made in the USA,” prompted, at least in part, by massive recalls of China-sourced ingredients in 2007. However, “made in the USA” labeled products can still contain “negligible foreign contents,” often including internationally sourced vitamins and minerals. Pet food products that manage to be both made in the USA and made of locally sourced ingredients capture the attention of savvy consumers in this market. 5. Minimal processing: As more Americans bypass Budweiser for microbrews and pick up store-prepared foods over boxed dinner kits, pet owners are also looking for minimally processed products for their fourlegged friends. Today’s natural-minded pet owners are flocking to nontraditional preparations such as raw, frozen, baked, dehydrated and even freeze-dried pet foods to get a better nutritional bang for their buck. Additionally, more and more consumers are drawn to pet food brands that are upfront about processing, meaning pet food brands are looking to their manufacturers to provide unprecedented transparency as well. What trends will we see in 2017? Only time will tell. But one thing’s for certain: There are no more secrets. The wall that once existed between pet food manufacturers and pet owners has been dismantled by a demand for transparency, and whether you’re proud to be organic, grain-free or made in the USA, you can bet your customers will want to know about it. SB

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TRENDWATCH CUSTARDS AND PUDDING

NEW SPIN ON OLDER PRODUCTS RETAILERS HAVE A CHANCE TO BECOME PRODUCT ‘PIONEERS’ BY DEVELOPING NEW SELECTIONS FOR THIS CATEGORY

By Rich Mitchell

The merchandising of privatebranded custards and puddings is becoming increasingly complicated. In addition to strong competition from the national brands, retailers also must defend against incursions from yogurt marketers, who are positioning their products as attractive desserts, snacks and quick indulgences, says Diana Sheehan, director of retail insights for Kantar Retail, a Boston-based research and consulting firm. To bolster merchandising, retailers can offer higher-quality and greater varieties of custards and puddings, Sheehan notes. “Part of the challenge is convincing mothers that the products are something that they want to give to their children,” she states. “But there are strong growth opportunities as many older shoppers love custards and puddings, and a large base of younger consumers haven’t discovered the items yet.” Store brands are especially ripe for growth because many manufacturers of national brands are turning their marketing attention elsewhere, she says. “The custards and puddings categories haven’t received much attention so it makes sense for private brand retailers to

invest merchandising dollars into the space,” Sheehan says. Sales tactics, meanwhile, can include situating products in different store locations to gauge shopper responses, such as on end caps and in the baking and snack food sections, she notes. In addition, retailers can spotlight products with shelf talkers that contain such messages as “try us in cake mix,” along with digital coupons that are sent to loyalty card members, she says. “Because these are legacy categories, just reminding people that the products exist and they can use the items in different ways can go a long way,” Sheehan notes. Retailers can generate further interest in store brands by offering products with clean labels and developing items with ethnic flavors

Store Brands /December 2017 / www.storebrands.com

that will appeal to immigrants as well as consumers seeking new alternatives, says Daniela Gutierrez, sales and operations manager for Mardalvi International Corp., a Toronto-based custard and pudding supplier. “Millennials and Generation Z shoppers are major foodies and are always looking for the next big thing,” she states. “Consumers also are becoming more aware of ingredients, processing and their health and are opting for more natural products.” Indeed, Gutierrez notes that retailers can become product “pioneers” by developing new selections for the categories while also emphasizing sustainability by merchandising items in packaging that is recyclable and/or biodegradable. Merchandisers can spotlight the attributes as well as such healthoriented elements as being free of gluten or preservatives with package messaging, she says. The specific items retailers offer in each outlet should coincide with consumers’ purchasing habits, which can vary by generation and region, Gutierrez says. Selections can include nostalgic flavors as well as convenienceoriented products that shoppers can consume on the go and do not require refrigeration, she states. However, because many millennials prefer to dine out, Gutierrez says retailers also “need to find ways to encourage them to cook at home more,” such as by promoting their private-branded custards and puddings through social media. “Sometimes it’s a matter of just thinking outside the box and changing up the packaging format, while making the consumer’s life even easier,” she notes. SB Mitchell is freelance writer from Wilmette, Ill.

Specializing in Private Label Perfect for easy entertaining! All-natural, No artiﬁcial ﬂavours or colors Gluten-free • Non-GMO

Daniela Gutierrez danielagutierrez@mardalvi.com www.mardalvi.com

• Largest private label and co-pack manufacturer of canned shelf-stable desserts • More than 70 years of experience • Clean, natural ingredients. • Convenient packaging in BPA-free cans. • Customized recipes to suit varying demographic palates and markets around the world.

TRENDWATCH SINGLE-SERVE COFFEE

WAKE UP AND SMELL THE OPPORTUNITY NO LONGER A NOVELTY, SINGLE-SERVE COFFEE OWN BRANDS MUST DIFFERENTIATE TO THRIVE By Dana Cvetan The staggering growth that private brand single-serve coffee experienced after Keurig Green Mountain Coffee’s main patent expired on its K-cups in 2012 has started to plateau for many retailers. Global market research firm Mintel notes in its July report, “Coffee U.S.,” that the percentage change of sales growth topped 40 percent for singlecup coffee in 2013, but dipped below 10 percent starting in 2016. A Lightspeed/Mintel online survey of 2,000 adults conducted for the report found that 53 percent consume single-cup coffee. This compares to 83 percent who consume any type of coffee. While consumers still love the convenience of single-serve coffee, they view the category as homogenized, says Angelo Campanella, vice president, U.S. channel development for Club Coffee L.P. in Arlington Heights, Ill. Differentiation is the key to breaking out of the crowd and should be focused

on product quality and sustainability, the latter especially as it relates to the disposable pods, Campanella believes. “How can we improve the quality of the consumer coffee experience? Can we be more sustainable? How do we stand out in terms of packaging?” Campanella asks. “I believe that growth, especially in single-serve brewed coffee, will come from offering consumers pods that brew as well as or better than drip coffee makers.” Club Coffee’s sustainability efforts resulted in the creation of its Purpod 100 single-serve coffee pod, which is the world’s first certified 100 percent compostable coffee pod, Campanella says. “Our entire pod breaks down in less than 90 days in municipal composting facilities,” Campanella says. “This took a great deal of time and investment and was hugely challenging, since we were the pioneer. In North America alone, over 10 billion pods are sold each year. Ten billion! That is a staggering number of plastic cups. We believed that plastic cups are not sustainable and ultimately have a negative

impact on the environment, and we were going to do something about it.” Continued reinvention is driving coffee category growth, according to Packaged Facts’ December report by George Puro, “Coffee and Readyto-Drink Coffee: U.S. Retail Market, 9th Edition.” Online shopping has given consumers the ability to quickly and efficiently research, explore and compare products, and this gives retailers an opportunity to make emotional connections with them, Campanella says. Millennials in particular, he adds, seek out new brands and experiences and are more attuned to sustainable products. “Retailers have an opportunity to engage with that consumer, tell their story and convert the consumer research into an actual purchase,” he notes. “This is especially important to private label brands, which can capture that consumer purchase through high-quality, differentiated products (that are) a better value than national brands.” Campanella foresees a dramatic increase in single-serve espresso-based drinks sold at retail, following the lead of popular coffee house chains where many of the coffee drinks are not only espresso-based, but also the highest priced drinks on the menu. “For many consumers, it is difficult to make a café quality espresso based drink at home,” he says. “Private brand Nespresso Original Line Capsules are manufactured by many companies, including Club Coffee. We believe that in the 2017 holiday season, many first-time consumers will [have moved] into this category. Also, because private brand capsules will be available at many North American retailers, you will see this category growth explode.” SB Cvetan is a freelance writer from Barrington, Ill.

Store Brands /December 2017 / www.storebrands.com

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TRENDWATCH SOUP

SOUPING UP SOUP FEED THE NEED FOR BETTER-FOR-YOU PRODUCTS BY HIGHLIGHTING NUTRITION, CONVENIENCE By Dana Cvetan Ideals often clash with reality. Though 79 percent of consumers surveyed by global market research firm Mintel say they believe soup made from scratch is healthier than packaged soup, only a third of soup buyers actually make it from scratch. This isn’t necessarily bad news because category players have plenty to work with to promote the category, Mintel points out in its June report “Soup U.S.” Demonstrate soup’s healthfulness by shining a spotlight on qualities such as simple ingredients, free-from claims and softer claims such as high protein content, Mintel advises. Affected by the movement away from center store, ready-to-serve (RTS) wet soup and condensed soup sales declined by 2 percent between 2013 and 2017 (estimated,) Mintel reports. Sodium content is the most troublesome issue for soup consumers, Mintel reports. Its Lightspeed/Mintel internet survey of 2,000 adults found 68 percent think most soup is too high

in sodium. Fifty-six percent said they thought most soup is too processed and 28 percent said most soup is too high in calories. Seventy percent of consumers are actively making dietary choices for their health, and 91 percent say it’s important to know what’s in their food, says Kim Hannaford, director of marketing for Morgan Foods, an Austin, Ind.-based century-old family company that makes private brand soups and other mixed ingredient products. Millennials want food products that deliver functional nutrition on the go and are actively looking for new experiences. Baby boomers want nutritional ingredients that address their dietary needs and help them manage their medical conditions, and they want soup in microwaveable and re-sealable packaging, Hannaford says. Convenience, already one of packaged soup’s chief advantages, can be further developed to grow the category by focusing on resealable, portable packaging that allows consumers to portion the product as needed, or consume it away from home, Mintel notes. Not only are lifestyles continuing to get busier, 45 percent of U.S. households are headed by singles, Hannaford notes. “These factors

Store Brands /December 2017 / www.storebrands.com

continue to influence consumers to look for more convenient, nutritious meals that they can consume on the go,” Hannaford explains. “You may think of it as snacking, yet many consumers view it as getting fuel when they need it, versus waiting for a specific time of day to sit down to eat.”. Consumers want convenient, nutritious soups that taste great and are affordable, Hannaford says. The use of nutritious, simple, natural ingredients that provide consumers with a clean label will be a continuing trend, Hannaford adds. In flavor trends, internationally inspired soups will continue to influence the category. Increasingly, Hannaford says soups are featuring ingredients with specific attributes that convey better nutrition, such as higher protein content and organic ingredients. Positioning soup to compete with the ideal of a homemade pot is attainable, Hannaford says. “There is potential for a soup meal kit — including premeasured ingredients and simple-to-prepare recipes — to meet this growing consumer need,” she adds. Promote prepared soup in portable, resealable packaging that allows consumers to eat what they want over time without worrying about product freshness being compromised; place the product in the store’s perimeter; and realize that new flavors, new ingredients, freshness and convenience play an important role in attracting consumers, Hannaford advises. Store brands must stay relevant to the category by adapting to the changing marketplace, Hannaford adds. Implement a variety of merchandising activities. Find the best opportunities by improving product selection to meet shopper demographics and offer shoppers meal solutions using soup with recipe suggestions that will grab attention. SB Cvetan is a freelance writer from Barrington, Ill.

TRENDWATCH TURKEY AND MEAT

NO CHOPPED LIVER QUEST FOR INNOVATION AND EXCLUSIVITY ARE EVIDENCE THAT PRIVATE BRANDS HAVE EVOLVED IN CATEGORY By Lawrence Aylward

Let’s talk turkey. In 1970, 50 percent of all turkey consumed was during the holidays. Today, just 29 percent of all turkey consumed is during the holidays as more turkey is eaten year-round. Turkey consumption has increased 104 percent since 1970. Today, the average consumer eats nearly 17 pounds of turkey annually. With its 20 by 2020 program, the National Turkey Federation is aiming to increase turkey consumption among consumers to 20 pounds by 2020. Like other proteins, turkey consumption has been aided by innovation. For instance, it’s no coincidence that turkey bacon’s introduction and subsequent rise in popularity in the 1980s coincided with turkey’s rise in per-capita consumption. That innovation has continued in the category, thanks to companies like Telford, Pa.-based Godshall’s, which manufactures a variety of turkey and meat products, including smoked bacon, snack sticks and its new Artisan Butcher Turkey Bites, made from chopped and formed smoked turkey thighs. All of Godshall’s products are available for private brands.

Ron Godshall, Godshall’s chief operating officer, says the quest for innovation and exclusivity are the clearest evidence that private brands have evolved in the category. “Store brands are no longer the dull version of marquee brands,” Godshall states. “One of the best things we bring to the private label market is experience filling unique requests, and these are often part of the retailer’s image. Whether you want halal maple or paleo peppered, we have a state-of-the-art new research and development facility dedicated to living up to our private label rallying cry, which is ‘we can do that.’ ” According to a recent report from market research agency Nielsen, the call for food transparency continues to build, and that applies in the fresh perimeter of the store where consumers purchase meat. Terms like “organic” and “natural” are growing in importance among consumers. “Meat producers should continue to think of how ‘clean’ varieties are resonating with consumers,” Nielsen states. That thinking is not lost upon Godshall, who says clean label is the company’s baseline for its products.

Store Brands /December 2017 / www.storebrands.com

“Clean label has seen the greatest concentration of demand,” Godshall adds. “Whether you’re bringing deli slices, bacon or snack items, it’s hard to get a second look from consumers if you can’t deliver the item as all-natural.” Godshall also believes that consumers are reassessing fat and focusing more on sugar. “Real butter and a reasonable degree of fat seem to be less of a deterrent than high-fructose corn syrup,” he says. “The U.S. has a diabetes epidemic, so one of the things we want to work on is sugar-free meats and flavoring. And if we have sugar, I want it to be from real fruit or vegetables.” With snacking becoming more popular, Godshall’s has concentrated on new products with different tastes, which is why the company developed Turkey Bites. “Our Turkey Bites line takes a leaner protein, turkey, and updates it to a more tender take on jerky,” Godshall says, noting the company is also capitalizing on satisfying millennials’ wide-ranging taste palettes by “adding new spices to retro recipes,” such as mango sriracha and Korean BBQ. “Millennials want choices, and the more exotic the better. They grew up with a curious palette, trying tandoori and Thai, Persian and Vietnamese. Boomers share their interest, though, in healthier options, whether it’s leaner protein, less processing, or keeping ingredients minimal.” Going forward, Godshall says his company is exploring offering products with new levels of convenience but without a processed muting of taste. “Speed to shelf, modern refrigeration, and the use of natural preservatives have freed us up to produce center-table entrees with all the flavors of the day in the kitchen that consumers can prepare in five minutes. The expanding potential there is what excites me.” SB Aylward, the editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com

iGPS: Leading the Market Through Sustainable Supply Chain Solutions

Jeffrey Liebesman Chief Executive Ofﬁcer iGPS is dedicated to being the industry leader of innovative, world-class supply chain solutions leveraging sustainable, intelligent shipping platforms while achieving unmatched value for our customers, investors, and employees. We Value P.R.I.D.E. Passion: We value intense pursuit of our company’s mission. Respect: We value our people, customers, partners, diversity and the environment. Innovation: We value creativity and continuous improvement. Dedication to Excellence: We value acting as one team to deliver quality and value in all we do. Ethics and Integrity: We value honesty, transparency and ethical behavior.

iGPS 225 E. Robinson Street Suite 200 Orlando, FL 32801 1-800-884-0225 info@igps.net www.igps.net

iGPS, which has been providing innovative, world-class supply chain solutions to markets throughout the U.S., has created a sustainable shipping platform that is disrupting the dynamics of the industry. iGPS’s recent growth in new business recognizes the shift from traditional pallets to the more protective and sustainable platform provided through iGPS. The key is the company’s plastic pallet pooling system, which provides lighter, safer, stronger recyclable and more environmentally friendly pallets than wooden counterparts. Because iGPS’ pallets always are of consistent size specification, have no protruding nails, eliminate splinters, have a crucifix bottom deck, engineered corners and cannot absorb bacteria, they have structural reliability and cleanliness, no contamination, greater stability and less interruption of the automated manufacturing or shipping processes. In fact, this system creates a complete “flow-through efficiency”, which is novel to the iGPS pallet. Just as important, that process simplification also reduces product damage. By eliminating the shards,

splinters, cracks, nails and surface contamination of standard pallets, the iGPS platform removes the primary elements that, otherwise, contribute to product damage – as well as hygiene concerns. Yet, the advantages go even further. This sturdier and greener iGPS platform also introduces three critical elements into the supply chain: 1) Sustainability; 2) Cost Savings; and 3) Efﬁciency. Improved Sustainability: A comprehensive independent life-cycle analysis examined the cradle-to-grave impact of all three types of pallets, ﬁnding that the iGPS platform had dramatically less impact on all measured dimensions. Since they are 27 pounds lighter than typical wood pallets, requiring far less transport fuel, the iGPS platforms actually reduce pollution and greenhouse gas emissions. Also, the new iGPS Generation 3 (Next Gen) pallets are 100% recyclable. Proven Cost Savings: An independent study also found that when supply chains in produce, dairy and protein switch to the iGPS platform, those companies

have enjoyed meaningful savings per pallet load. The results were unambiguous, accruing across all stages of the supply chain, with benefits for both manufacturers/growers, shippers and retailers. Greater Efficiency: All iGPS pallets are constructed of sturdy, lightweight (48.5 lbs.) plastic, in true 48” x 40” size. Always exceeding or meeting ISO and GMA standards, the iGPS platform is the only pallet to receive NSF’s Food Equipment Certification – of critical importance in today’s high tech ASRS, AGV, robotic and food safety sensitive environment. iGPS pallets are always in excellent, uniform condition, creating greater efficiency through simplicity and consistency in the supply chain. It’s no wonder that iGPS has seen a significant increase in customers and expanded use among existing clients within just the past year. is has included new agreements with Ainsworth Pet Nutrition, Niagara Bottling, Nestle Waters and Gerawan Farms among others.

Go green

Lower Costs Great news for your bottom line. There are more than 40 areas of savings when businesses switch from wood pallets to iGPS plastic platforms. This includes lower transport costs, less product damage and reduced equipment downtime. The new and stronger iGPS has reemerged as a driving market force with its unique Plastic Pallet Pooling System, that provides cutting edge, global supply chain solutions for some of the leading companies and manufacturers in the world.

To see more green for your company call 1(800) 884-0225, or visit:

www.igps.net

ADVERTISER INDEX ADVERTISER NAME

PAGE#

ADVERTISER NAME

PAGE#

Alpha Packaging ................................................................................................ 39

Heartland Food Products Group..................................................................... 21

Amercian Nutrition........................................................................................... 47

IGPS ................................................................................................................... 57

Arylessence......................................................................................................... 27

Imperial Frozen Foods ...................................................................................... 21

Berner Food & Beverage ................................................................................IFC

ITI Tropicals ....................................................................................................... 16

Casestack ............................................................................................................ 37

Mardalvi International ...................................................................................... 49

Catania Oils ........................................................................................................ 41

Mercer Foods ..................................................................................................... 23

Club Coffee LP ................................................................................................... 51

Morgan Foods Inc. ............................................................................................ 53

Colordyne Technologies ................................................................................... 35

Nepa Carton & Carrier Company ................................................................... 58

Daymon .............................................................................................................. 3

Old Fashion Foods ............................................................................................ 19

Deep Food Inc. .................................................................................................. 25

Oratech ............................................................................................................... 43

Furlani’s Food Corporation ................................................................................ 5

Private Label Manufacturers Association .................................................12-13

Global Tissue Group ..................................................................................45, BC

Request Foods .................................................................................................... 31

Godshall’s Quality Meats Inc. .......................................................................... 55

The Fremont Company ..................................................................................... 33

Store Brands / December 2017 / www.storebrands.com

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