Store Brands - November 2017 by ensembleiq

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A look back at 2017

Private brands thriving in Canada

Vegan store brands budding in U.S. November 2017 | www.storebrands.com

Bringing Out Their

Retailers honored for private brand prowess

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Volume 39 No. 11 November 2017

DEPARTMENTS 6

Editor’s Note

Promotional Insights

Getting Social

Around the Industry

162

End Cap

CONTENTS

28 COVER STORY

Best Of...Awards Retailers honored for private brand prowess

CATEGORY INTELLIGENCE 116 122 126 132

Jams and jellies Wine and beer Frozen meals Cheese and dairy products

136

Snacks

142

OTC medications

146

General merchandise

152

Household cleaning products

158

Oral care

FEATURES 62 THE YEAR IN REVIEW

‘Dramatic’ events highlight 2017 Amazon’s acquisition of Whole Foods and Lidl’s debut in the U.S. are two of our top 10 stories

85 CANADIAN MARKET INSIGHTS Canada’s private brand boom

Store brands gained 5 percent in retail dollar sales in Canada in 2016, more than twice the growth of national brands

92 MARKETING OPPORTUNITIES

Vegan store brand SKUs begin to bud But U.S. food retailers lag behind their European counterparts in private brand vegan call-outs

102

96 TRANSPARENCY AND OPPORTUNITY

Sweet spot Private brands could be poised to capitalize on natural sweeteners

102 MARKETING AND MERCHANDISING

Getting noticed The coffee and tea category requires a ‘thoughtful’ merchandising strategy

109 PACKAGING Call to attention Private brand packaging design continues to evolve with an aim to build consumer trust

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.

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EDITOR’S NOTE Business Intelligence for an Evolving Market

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Contributing Writers

The holidays are upon us. While it’s a time of feasting and festivity, I’d like to think the holidays also bring out the best in people. For one, it’s a time to think of the less fortunate. So I am utterly impressed with the many retailers in the industry that give to and help the less fortunate throughout the year, not just during the holidays. Three retailers immediately come to mind — Hy-Vee, Wegmans Food Markets and The Kroger Co. — but there are many more. These retailers have made a concerted effort to provide food to those who not only can’t afford a big turkey for Thanksgiving but also don’t have the money to make dinner on a hot summer evening. “Look at how many people need governmental assistance and how many people need the food pantry,” John Griesenbrock, Hy-Vee’s vice president of produce/ health markets, told me recently. “It doesn’t make sense.” West Des Moines, Iowa-based Hy-Vee is doing several things to help reduce hunger and is engaging its customers in the process. Consider Hy-Vee’s One Step line of private-branded products. The proceeds from sales of the retailer’s One Step russet potatoes, One Step shredded wheat, One Step paper towels and One Step bottled water go to various causes, including planting community gardens, preparing nutritious meals for food banks, and digging wells in impoverished villages around the world so people can have clean, safe drinking water. Talk about store brands making an impact. Wegmans and Kroger have also committed to giving. Rochester, N.Y.-based Wegmans sends day-old bread, not-quite-perfect produce, yogurt that is close to expiration date and other products to more than 300 food banks, pantries and soup kitchens daily. “Our stores are empowered to help with programs that feed the hungry, help young people succeed and promote healthy eating and activity,” said Jack DePeters, Wegmans’ senior vice president of store operations. Cincinnati-based Kroger recently unveiled an ambitious program, Zero Hunger, aimed at ending hunger in the communities it calls home. Kroger aims to accelerate food donations to provide three billion meals by 2025 to feed the hungry. “More than 40 percent of the food produced in the U.S. each year goes unconsumed, while one in eight people struggle with hunger,” Kroger CEO Rodney McMullen said. “As one of the largest retailers in the world, we are committed to doing something about it. This is our moonshot.” Who wouldn’t want to support Hy-Vee, Wegmans and Kroger and other retailers when they initiate and dedicate their businesses to programs like this? Their altruism is a reflection of their values. And, yes, their good deeds help their respective images — as in their intangible store brands. But what they do to help the less fortunate is not about public relations. “It’s about doing the right thing,” Griesenbrock says. Every day.

Rich Mitchell, Dana Cvetan

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

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Chief Brand/Operating Officer Chief Financial Officer

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2015

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PROMOTIONAL INSIGHTS

Private brands making it difficult for national brands to differentiate

By Ryne Misso

Remember the days when private brands were truly the bottom-shelf option? No? Neither does your average shopper these days. You don’t need to crouch over just to read the label on store brands anymore. Private brands are found on all shelves, mixed in with their equivalent national brand alternatives from the top shelf down to the floor. The development of private brands by retailers across the country has ushered in a new perception of store brands among shoppers — one that finds many shoppers struggling to even discern which products are store brands and which aren’t. According to Market Track’s “Q3 2017 Shopper Insight Series” survey, 64 percent of shoppers said they are no more or less likely to buy a product if it is a store brand. Even more surprising is that a greater percentage of shoppers are more likely to buy a product if it is a store brand (21 percent) than less likely (15 percent). Past surveys from Market Track have also shown that concerns about private brand quality and ingredients no longer exist — a

Amazon clearly plans to move more and more private brands from its warehouses.

majority of shoppers believe the quality is right on par with national brands. This shift in consumer perception is likely a critical driver behind the surge in private brands seen in the United States over the past 12 to 24 months. German retailer Lidl opened its first stores in the U.S. this year, following its Euro competitor Aldi into a market that is primed for private brands growth. Market Track assessed Lidl ads during its first month in the U.S. market and found that private brands made up 94 percent of all promotions. This is consistent with their in-store assortment, which hovers around 90 percent private brands. And although it is still the early days for Lidl in the U.S. market, it has already aggressively challenged major consumer packaged good companies, including Pepsico, whose packaging Lidl mimicked on its store brand chips. Beyond Lidl, private brands are also gaining momentum thanks to a commitment from Amazon to explore and launch new private brand offerings in categories from apparel to CPG. A recent count showed 37 total Amazon private brands available on its site, with 10 more that are trademarked but not yet sold. It is clear that private brands are well within Amazon’s plans for growth in the coming months. This is the new reality for national brands. They have lost the inherent quality perception advantage they once held over private brands. They are competing against a growing and diversifying set of store brands at their retail accounts. They are witnessing new retailers that sell almost exclusively store brands entering their market. And, to add salt to the wound, it seems part of Amazon’s world takeover includes an aggressive expansion of its own private brands. SB Columnist Ryne Misso is the director of marketing for Chicago-based Market Track, a global provider of advertising and promotional tracking, brand protection and e-commerce pricing solutions. He can be reached at rmisso@markettrack.com

Store Brands / November 2017 / www.storebrands.com

Delicious by design Innov ov o vation v ation • In Inspiirration ation • V Val alue

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GETTING SOCIAL

Q A with Adam Golomb Director of Own Brands & Sourcing Giant Eagle Inc.

How did you come to the world of private brands? I’ve been with Giant Eagle for five years, and most recently led the company’s shopper marketing efforts. While in this role, I was part of a team that developed the brand strategy for Giant Eagle’s own brands. This responsibility extended into my involvement in an effort to redesign packaging for all of the company’s own brand items, and inevitably to my current role. Describe the private brand industry in one word. Opportunity. What do you like most about the industry? The ability to deliver a unique point of difference for Giant Eagle by providing our customers with highquality, innovative and value-focused products.

When he’s away from work, Adam Golomb loves to spend time with his family, including wife Dana and three children.

What do you dislike most about the industry? Giant Eagle works closely with all of its supply partners to bring new and exciting products to our customers. That being said, we can on occasion be challenged by minimum item order requirements that prohibit us and other regional retailers from gaining access to products we know our customers would enjoy. What one great thing does the industry have going for it? Consumers are becoming more and more interested and accepting that private brands are equal to or better than national brands.

Store Brands / November 2017 / www.storebrands.com

What is the industry’s biggest challenge? As many consumer packaged good companies evolve to continue to meet the needs of increasingly discerning customers, we expect that they will continue to invest trade funds to grow their businesses. While we welcome this for our customers, we and other retailers must continue to have convictions about giving our owned brands equal weighting against these other great products. Who is your hero and why? My wife, Dana. She has a full-time job but still finds time to be heavily involved in our kids’ lives, including being PTO president, soccer coach and never missing any of their activities. What trait in yourself do you attribute most to your success? Drive. It’s 5 o’clock (or later), what do you do for fun? With three kids under the age of 10, you will likely find me engaged in a fun (and hopefully educational) activity with them. You have a week off. Where do you go and why? Hawaii. My wife and I spent our honeymoon there and it is truly amazing. We would love to go back. What song do you love to crank up in the car? Anything by Barenaked Ladies. What’s the best book you’ve ever read? “Blue Ocean Strategy” by W. Chan Kim and Renée Mauborgne. SB

AroundtheIndustry

Uniquely J is one unique private brand By Lawrence Aylward

The Walmart-Amazon rivalry just got more compelling — thanks to a sleek new private brand introduced last month by Walmart’s Jet.com, which is sure to beckon the attention of consumers who shop online. Walmart, which is slowly becoming an online giant in its own right — it expects e-commerce sales to increase 40 percent next year — acquired Jet.com last year for $3 billion in cash. In October, Jet.com rolled out its nifty Uniquely J private brand with a solid marketing plan behind it. Walmart and Jet.com are hitting on all cylinders fueling private brands these days, and are clearly going after millennials with Uniquely J’s “carefully curated” products. First, the products in the line are only available online, where sales of everything from toilet paper to TVs are flying off the shelves (you get the drift) in a retail world that is slowly but undoubtedly embracing e-commerce. The Census Bureau recently reported that retail e-commerce sales for the second quarter of 2017 were $111.5 billion, an increase of 4.8 percent from the first quarter of 2017. E-commerce sales in the second quarter of 2017 accounted for 8.2 percent of total retail sales. Second, Uniquely J

products were developed with “key qualities” that Jet.com says its shoppers — again, millennials — are seeking, including plant-based ingredients for cleaning products; USDA certified organic and Fair Trade certified beans for the coffees; and BPA-free plastics for the food storage bags. In other words, Jet.com has embraced several elements that private brand pontiffs say should be used to differentiate and succeed. “Uniquely J was created to make it easier for busy consumers to get their everyday essentials without having to give up the things they care about,” said Dan Hooker, general manager of private brands for Jet.com and Walmart e-commerce, in a press release. “With Uniquely J, we want to eliminate the tradeoffs consumers face; the purchase decision becomes an easy one when each product offers the trifecta of quality, style and value.” Jet.com has launched more than 50 products across the coffee, cleaning, laundry, pantry, paper and food storage categories, including Uniquely J Organic Sriracha Sauce; Uniquely J Clean Living All Purpose Cleaner, Lemon Thyme Basil; Uniquely J Ultra Strong Toilet Paper; and Uniquely J Organic and Fair Trade Medium Roast Ground Coffee. With Uniquely J, Jet.com is clearly going after the hip crowd, not my 87-yearold mother. Consider the Uniquely J Badass Espresso, which is packaged in a box that could pass as the cover of a Guns N’ Roses album. Jet. com has not only invested in The Uniquely J line includes organic salsa and organic sriracha sauce.

Store Brands / November 2017 / www.storebrands.com

SHORT TAKES Walmart expects ecommerce sales to increase 40% next year Bentonville, Ark.-based Walmart is escalating its online competition with Amazon and other grocery retailers. The chain announced during its annual meeting in October that it expects its ecommerce sales to grow 40 percent next year. The nation’s largest grocer also said it would add 1,000 online grocery locations in the U.S. through its fiscal year, which ends January 2019. “We have good momentum in the business; we’re executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money,” Walmart CEO Doug McMillon said in a press release.

Kroger explores selling convenience store business The Kroger Co. announced a plan to “redefine the food and grocery customer experience in America,” called Restock Kroger, during its annual investor conference in October. Included in the plan is a potential sale of the Cincinnati-based retailer’s convenience store business. “Our convenience stores are strong, successful and growing with the potential to grow even more,” said Mike Schlotman, Kroger’s executive vice president and chief financial officer. “We want to look at all options to ensure this part of the business is meeting its full potential. Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review.” Kroger’s convenience store business includes 784 convenience stores located across 18 states. The Restock Kroger plan is expected to generate $400 million in incremental operating margin by 2020, the retailer said. The company expects to generate more than $4 billion of free cash flow over the next three years, nearly double what was generated over the previous three years. Kroger also said it expects identical supermarket sales to be stronger in 2018 than 2017.

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AroundtheIndustry the appearance of the packaging, but it has taken private label packaging to new territory. More products will be added to the brand in the coming months and continuously over time. “Uniquely J is not just Jet.com’s entry into the private brands space, it also furthers our efforts to serve the metropolitan consumer with a select assortment of premium products while also offering them a great shopping experience,” said Liza Landsman, president of Jet. com, in a press release. Based in Hoboken, N.J., Jet.com was developed by entrepreneur Marc Lore and launched in 2015 to appeal to the “busy, discerning shopper.” Lore also developed Quidsi (the parent company of Diapers.com) before selling it to Amazon for $545 million in 2012. Oh, the irony. SB

Whole Foods steals customers from Walmart, Trader Joe’s, others But private brands could prove a differentiation point for retailers that lost traffic By Lawrence Aylward

Amazon acquired Whole Foods Market and immediately lowered prices on the organic and natural foods retailer’s products to steal away customers from its grocery competitors and to gain a proverbial slice of the pie in the massive and ever-competitive grocery market. Austin, Texas-based Whole Foods did just that —at least for the first week it was officially owned by Amazon, according to a report from the Thasos Group, an alternative data intelligence firm that tracks shoppers’ mobile phone locations. The firm recently published a research report, “Competitive Impact of Lower Prices at Whole Foods,” which analyzes

Store Brands / November 2017 / www.storebrands.com

numbers, composition and behavior of new customers at Whole Foods’ stores following the price reductions that Amazon immediately implemented after the merger officially closed on Aug. 28. From Aug. 28 through Sept. 3, Walmart’s regular customers accounted for the largest percentage (24 percent) of Whole Foods’ new customers, the report stated. Other retailers accounting for new Whole Foods’s customers were Kroger (16 percent), Costco (15 percent), Target (11 percent) and Sam’s Club (5 percent). Trader Joe’s had the highest rate of customer defections. On average, almost 10 percent of its daily customers went

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AroundtheIndustry to Whole Foods during the week of the price cuts compared with the week prior. Eight percent more of Sprouts customers defected to Whole Foods. The Thasos Group said the defection rate is defined as the percentage of regular customers for a given competitor who shopped at Whole Foods during a specific time period after the price reduction minus the same percentage for a comparable period before the price reduction. It was already reported that foot traffic at Whole Foods climbed significantly year-over-year in the first week the retailer was owned by Amazon. Thasos Group estimated foot traffic surged 17 percent from Aug. 28 through Sept. 3 before decelerating to an increase of 4 percent year-over-year in the three weeks after. “Knowing which stores new customers have defected from, what income levels they represent, how far they traveled to get to Whole Foods, and ultimately, whether they will continue

to shop there after trying it out, are invaluable pieces of information for both investors and the stores themselves,” Greg Skibiski, Thasos Group CEO and founder, said in a press release. “We all know that Amazon’s acquisition of Whole Foods has the potential to be a game changer in the grocery space. It will be extremely interesting to watch the winners and losers emerge from the data over the coming months.” The report’s findings were published

by several mainstream media giants including Reuters, Forbes, The New York Post and The Daily Meal. Thasos group said its analysis covers a broad range of metrics, including new customer growth, attrition, loyal customer defection from competitors and customer demographics. No doubt that all the fanfare surrounding Amazon’s takeover of Whole Foods and Amazon’s lowering of Whole Foods’ prices had an impact on customer traffic during the first week.

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AroundtheIndustry Clearly, consumers wanted to check out the “new” Whole Foods and its lower prices. The big question surrounds the number of consumers who went to Whole Foods during the first week and if many of them will continue to shop there. Also, all of the retailers mentioned in the report have solid private brands

programs and many of them are investing in their private brands. Consider Sam’s Club’s recent investment to upgrade its Member’s Mark brand and Kroger’s recent expansion of its Our Brands. Clearly, these retailers are investing in their private brands to differentiate and remain competitive. SB

Trader Joes will open fewer stores this year Monrovia, Calif.-based Trader Joe’s, a leader in innovative and premium private brands, will open fewer stores in 2017 — 14 — than its annual average of opening stores in the past several years, which is 23. It’s the second year in a row that Trader Joe’s has opened fewer stores than average — last year it opened 13 stores. This year, Trader Joe’s has opened new stores in Allston, Mass.; Kalamazoo, Mich.; North Brunswick, N.J.; San Francisco; West Hollywood, Calif.; San Diego; Hoboken, N.J.; Las Vegas; New York; Somerville, Mass.; Los Angeles; Washington, D.C.; Coralville, Iowa; San Juan Capistrano, Calif.; and Jacksonville, Fla. Trader Joe’s has more than 470 stores in 41 states.

Hy-Vee to build Fast & Fresh mini grocery marts West Des Moines, Iowa-based Hy-Vee is planning to open a 10,000-square-foot Fast & Fresh mini grocery store in Des Moines, Iowa, reported The Des Moines Register recently. This format is more than double the size of typical Hy-Vee convenience stores and has more of a focus on fresh food. The Fast & Fresh store in Des Moines will include a range of grocery categories, a Hy-Vee Market Grille Express, gas pumps and a coffee shop.

Costco rolls out home delivery Costco Wholesale members loyal to the warehouse club’s Kirkland Signature private brand can now get the line’s products and others delivered to their homes. Richard Galanti, CEO of Issaquah, Wash.-based Costco, announced recently that Costco was implementing CostcoGrocery, which will provide twoday delivery on dry goods and sundries items and same-day delivery for fresh foods, produce and dry goods through a partnership with Instacart. The latter is currently live at 376 locations in the United States, with more stores planning to add it by the end of fiscal 2018, Galanti said. About 1,700 SKUs, both dry and fresh, are offered through the Instacart option. The two-day delivery will feature nearly 500 dry grocery SKUs with free delivery on items over $75, Galanti said.

Store Brands / November 2017 / www.storebrands.com

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AroundtheIndustry Jiminy crickets! Company offers insects for human consumption Might private brands consider the bugs as a high-protein functional ingredient? By Carolyn Schierhorn

Crickets have long been farm-raised in the United States for fish bait and, in more recent decades, for pet lizard food. According to biochemist and entomologist Aaron T. Dossey, Ph.D., crickets also have enormous value as a high-protein ingredient for human consumption. “The potential market is much larger than that of pet food and fish bait combined,” said Dossey, the founder and owner of Oklahoma City-based All Things Bugs. All Things Bugs manufactures Griopro, a cricket powder Dossey developed that has a mild flavor and is recom-

mended for use in smoothies, shakes and baked goods such as protein bars and cookies. The company’s website (www. cricketpowder.com) provides a number of recipes for the powder, including Cricket Powder Cinnamon Banana Bread, Cricket Powder Breakfast Biscuits, Cricket Powder Pancakes, Very Berry Smoothie, Taco Meat and Cricket Panang Curry Sauce, a Thai dish. Crickets are commonly eaten in Thailand, which has some 30,000 cricket farms, Dossey said. Individual consumers can order the

cricket powder online, but the company can also supply the ingredient in bulk to food processing companies and grocery retailers with bakeries or foodservice operations. In addition to being high in protein, crickets have considerable iron — 12.91 milligrams per 100 grams, “just shy of ” beef ’s 15.47 milligrams per 100 grams, stated an article titled “Edible Insects Have More Iron than Sirloin Beef,” posted on ScientificAmerican. com on Nov. 11, 2016. Crickets also are a decent source of B vitamins and omega-3 and omega-6 fatty acids, Dossey noted. Natural and sustainable, cricket powder has enthusiasts among paleo diet aficionados and the environmentally conscious, he added.SB

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AroundtheIndustry 3 questions to ask your pet food manufacturer Whether your prospective partner has a sterling reputation or had a recent recall, it is prudent to dig a little deeper to confirm its commitment to pet food safety standards By David Nyachuba

When choosing a manufacturing partner for your pet food, you might begin your search like you would many things — with those who have the best reputation. While reputation counts for a lot, it’s important to peel back a layer and fully understand what’s going on behind the scenes to account for the safety and quality of the final product. It’s safe to assume that all pet food manufacturers worthy of consideration will have a formal food safety program. However, how comprehensive it is, and how fully it is implemented, is a different story. Without this need-to-

know information, you run the risk of manufacturing a product that does not match your specifications — or the requirements of the FDA. Here are are important questions to ask as you vet manufacturers’ pet food safety programs:

What is included in your food safety program? The objective of any food safety program is to prevent, eliminate or reduce food safety hazards to an acceptable level. In order to achieve this, the food safety management

Store Brands / November 2017 / www.storebrands.com

system (e.g. HACCP) must be built upon effective prerequisite food safety programs, which should incorporate the following: • Supply-chain management program: To protect the integrity of the final product, specifications should be established for all ingredients. The manufacturer should purchase from approved suppliers and determine a schedule of appropriate supplier verification activities, such as onsite audits.

AroundtheIndustry • Sanitary transportation of food. To ensure food safety of ingredients and finished products, the manufacturer should establish sanitary practices that must be followed by shippers and other entities involved in transporting food, and monitor and verify the practices are followed. • CGMPs (Current Good Manufacturing Practices): Like any manufacturer, your pet food partner should employ CGMPs that include hand washing and the use of hair nets to prevent product contamination, as well as processes to establish continuous plant sanitation, adequate water supply, etc. • SOPs (Standard Operating Procedures): SOPs should be established for all mission-critical tasks to ensure consistency in execution. • SSOP (Sanitation Standard

Operating Procedure): This stepby-step methodology dictates how equipment should be cleaned and sanitized to minimize contamination. • Regular audits: Both internal and third-party audits should be conducted at the facility, and reports from a certification firm should be available for review upon request. • Committed culture: Manufacturers should incorporate employee training and policies related to food safety to ensure it is a primary component of workplace philosophy and culture.

What precautions do you take to prevent crosscontamination? As an oft-overlooked component of food safety, this is a focused question to pose to your potential partner. Every manufacturing process will include a “kill” step aimed at killing pathogens

Lidl to participate in How2Recycle initiative Arlington, Va.-based Lidl has joined more than 90 other companies in the U.S.-based How2Recycle initiative, a project of the Sustainable Packaging Coalition that aims to inform consumers about how to recycle different types of packaging. Lidl will use the How2Recycle label on its private brand products in the United States. How2Recycle makes recycling simple by clearly communicating instructions for how to dispose of every packaging component. “Running efficient operations and reducing waste are important company principles at Lidl because they enable us to be better stewards of the environment, while lowering our operational costs so we can drive prices down for our customers,” said Boudewijn Tiktak, chief commercial officer at Lidl, in a statement. “By including How2Recycle labeling on our packaging, we are proud to help our customers facilitate better recycling in their own lives.”

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AroundtheIndustry that may be in the ingredients. But without the proper precautions, it is still possible for harmful microorganisms to be transferred from contaminated surfaces to the product or food contact surfaces, or from the raw ingredient to the product. Prevention efforts might include hygienic zoning, in which the facility is zoned to separate raw ingredient handling areas from postkill step processes, break rooms and maintenance shops, and hallways and warehouses. Ideally, both movement and airflow would be controlled to prevent cross-contamination between the zones.

Has your product ever been recalled? If so, why, and what has been done to prevent this from happening again in the future? It’s important to confirm that your manufacturer has a track record of complying with both regulatory and

customer requirements. If a recall has been issued, this may initially throw up a red flag. But before scratching the manufacturer off your list, ask what happened and what has been done to ensure it doesn’t happen again. A recall can be an indicator that a food safety program has failed, but recalls can happen for many reasons. For example, an isolated incident involving an employee error may have led to the recall. Or a supplier may have provided an assurance letter regarding a specific ingredient, but the ingredient was later found to be contaminated. Asking smart questions can help you determine the real cause of the recall and whether or not the manufacturer’s current food safety program will be a true preventive measure. SB

Ahold banners ramp up digital offerings Stop & Shop, Giant Food Stores, Martin’s Food Markets and Peapod have launched a series of initiatives to strengthen their digital capabilities and optimize their e-commerce offerings, according to Ahold USA, which owns the brands. With investments in digital coupons, new websites, mobile app improvements and a new recipe center, the brands are further improving the customer experience in the digital age, Ahold USA said in a press release. Some of the milestones include: • One million new digital users (and counting) over the last year. • More than 179 million digital coupon activations so far this year — a 179 percent increase compared to the previous year. • New responsive brand websites, leading to 20 percent growth in web traffic over the last year. • A 76 percent increase in monthly app users and tripling of mobile app downloads. • Over 1 million social media followers across platforms .

Nyachuba, Ph.D., is corporate director of food safety for American Nutrition.

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COVER COVERSTORY STORY: BEST OF...AWARDS

Bringing Out Their Retailers honored for private brand prowess The winning retailers of our “2017 Store Brands Best Of…Awards” reflect the major trends occurring in private brands, from innovation to exclusivity. The winners, whether they are being honored for products, marketing or services, have distinguished themselves. This year’s recipients represent an array of retailers from across the U.S. They were selected for their respective awards by the Store Brands editorial staff — which based selections on a number of criteria and feedback from industry professionals — for their achievements in the last year (September 2016 through September 2017. The recipients will receive their awards on Nov. 13 at a special reception during the Private Label Manufacturer Association’s Private Label Trade Show in Rosemont, Ill. By Lawrence Aylward and Carolyn Schierhorn 28

Store Brands / November 2017 / www.storebrands.com

Without further ado, here are the winners of our “2017 Store Brands Best Of…Awards”:

Store Brands Retail Executive of the Year Chandra Holt — Sam’s Club Chandra Holt and members of her private brands team literally combed the globe in 2016 — from visiting olive and tomato farms in Italy to wine orchards in France and to a smokehouse in East Texas — to procure the best ingredients and processing methods to transform Sam’s Club’s store brands. As vice president of private brands, Holt led the transformation. In April, Sam’s Club and Holt announced the program’s revitalization, which included streamlining 21 previous Sam’s Club private brands, including Simply Right, Bakers & Chefs and Daily Chef into one — Member’s Mark — a 20-year-old brand that Holt says has maintained strong equity. The line’s overhaul will touch about 1,200 products in food, beverage and general merchandise by the end of 2018. It includes 600 new products — 300 introduced in late 2016 and 2017 and 300 in 2018 — and enhancements to 600 others. For her efforts, Holt is our Store Brands Retail Executive of the Year. “It is a huge honor,” says Holt, who joined Sam’s Club in August 2015. “Serving our members with exceptional private brand offerings is very important to me. So knowing that others recognize the behind-the-scenes hard work is a great tribute to my team and our supplier partners.” There are three- to five-year goals for Member’s Mark. One of them — achieving a 20 percent penetration rate — has already been met. “The accomplishments my team delivered are some of the biggest highlights of my career so far,” the 37-year-old Holt said. “I know I will always look back and be very proud of how the private label team transformed the Sam’s Club shopping experience for our members.” Holt says much of the success of the Member’s Mark strategy can be attributed to the unwavering support from senior leadership, including Sam’s Club CEO John Furner, who Holt says funded a new private label team and empowered her and the team to do what needed to be done to change the club warehouse chain’s private brand business. “Our strategy was created by listening to our members and keeping the members as our focal point, which kept us on track,” Holt says. “We also had great support from our supplier partners.” Holt was recently promoted to senior vice president of Sam’s Club’s grocery, beverage and tobacco division. Many of the new Member’s Mark items are purchased by buyers in her division. “You can bet I’ll keep the Member’s Mark momentum going in my new role,” Holt says.

“Our strategy was created by listening to our members and keeping the members as our focal point, which kept us on track.” — CHANDRA HOLT, SAM’S CLUB

www.storebrands.com / November 2017 / Store Brands

COVER STORY: BEST OF...AWARDS

Lidl’s Preferred Selection line includes about 160 SKUs and features meat, cheeses, chocolates, snacks and more.

Store Brands Top Innovation Award Lidl — Preferred Selection Lidl arrived in the United States in June and has opened 40 stores. The Germany-based retailer, which operates more than 10,000 stores in 28 European countries, offers a 90 percent assortment of private brands — anchored by its Preferred Selection private brand — which is the recipient of the Store Brands Top Innovation Award. The premium line of products, which includes about 160 SKUs, extends across a number of categories including fresh and packaged meats, charcuterie, cheeses, chocolates, snacks and more. The products are innovative, if not exclusive, the very two things driving differentiation in private brands today. Lidl’s fresh meats include Irish Hereford steaks and packaged meats include prosciutto crudo dry-cured ham. Lidl’s vast line of imported cheeses include manchego and Dutch gouda. Many products in the line have already been honored with awards in U.S. food competitions. “Preferred Selection allows Lidl to showcase the incredible food diversity and expertise we have gained over decades of operation across Europe,” says Will Harwood, director of communications for Lidl, which has U.S. operations based in Arlington, Va. “Preferred Selection consists predominately of authentic specialty food products sourced from iconic European countries, including Italy, France, Spain and Germany to name a few.” Harwood says Lidl has a system where it has the flexibility to integrate a country of origin flag directly

Store Brands / November 2017 / www.storebrands.com

over the Preferred Selection logo. “The packaging designs also honor the authentic style and artwork one would typically find on premium products in that country of origin,” he adds. “This not only brings a fun international aspect to the shopping experience in our stores, but also helps shoppers who are looking for products that can elevate recipes or broaden their experience with food.” One of Lidl’s calling cards is its low prices. Products in the Preferred Selection line are offered at an excellent value. “We are extremely proud of the incredible partnerships we have developed with local suppliers in all the countries in which we operate,” Harwood says. “We do this by employing an expert network of locally based buyers in each country where Lidl is located. These food experts will travel throughout their countries to meet suppliers, stress test products and ultimately source the best products around. Having these deeply established supplier relationships is part of what helps us deliver our Preferred Selection items at prices significantly lower than anything one typically finds in the market.”

CONGRATULATIONS CHANDRA HOLT Senior Vice President of Merchandising On behalf of the entire Sam’s Club family, congratulations on your well-deserved honor of being named Store Brands’ Retail Executive of the Year. Thank you for elevating the Member’s Mark brand.

This awar award is a great tribute to the Sam Sam’s Club private brand team and our supplier partners. tners – Chandra Holt

COVER STORY: BEST OF...AWARDS

Trader Joe’s Cauliflower Pizza Crust comes in two varieties — organic and gluten-free.

Best New Food Product or Line Trader Joe’s — Cauliflower Pizza Crust Many consumers today relish cooking at home and freely experiment, often sharing their creations on social media. But modern-day foodies who are innovative in the kitchen also prioritize convenience. Sometimes making a meal component from scratch is just too complicated, difficult or time-consuming. For those desiring to prepare a homemade gluten-free, vegetarian or vegan pizza, a cauliflower crust is a delicious alternative to a typical flour-based crust. But making a cauliflower crust can be a huge challenge to amateur chefs. Fortunately, Monrovia, Calif-based Trader Joe’s has come to the rescue with its frozen private brand Cauliflower Pizza Crust, made primarily with cauliflower and corn flour. The product comes in two varieties — organic and gluten-free — in recognition of the two major food trends. “People are freaking out over this new product,” wrote Julie Pennell in her popular lifestyle blog. Pennell emphasized in her blog, “Shoppers began noticing the frozen cauliflower crust in stores [the weekend of May 1213] and have already taken to Instagram to share how much they love it.” Besides cauliflower and corn flour, the gluten-free product contains water, cornstarch, potato starch, olive oil and sea salt, so it is inherently vegan. Another of the product’s appealing traits is that it is relatively low in calories, Trader Joe’s

Store Brands / November 2017 / www.storebrands.com

states on its website. If the frozen crust is divided equally into six slices, each would have 80 calories before the addition of toppings. For providing a great solution for shoppers who prioritize health and wellness and want to cook but don’t have a lot of time, we have selected Trader Joe’s Cauliflower Pizza Crust as recipient of our Best New Food Product or Line. By using plant-based rather than animal-based ingredients, the product resonates with flexitarian consumers who are trying to reduce their meat and dairy consumption as well as with vegans and vegetarians. Similar to the meal kit trend, the Cauliflower Pizza Crust allows less-experienced cooks to easily prepare a delicious hot meal at home. Priced at $3.99 each, the 10.6-ounce frozen crusts are also inexpensive. Most important, the product satisfies the desire of millennial and other young consumers to engage in the co-creation of something new and different.

A cauliflower crust is a delicious alternative to a typical flour-based crust.

COVER STORY: BEST OF...AWARDS Wholesome Pantry Organic includes items from spinach to pasta sauce.

Best New Organic Food Product of Line ShopRite — Wholesome Pantry Organic Organic is growing in private brands, and Keasbey, N.J.based retailer ShopRite is helping to lead that growth. Late last year, ShopRite rolled out Wholesome Pantry Organic, a growing line of USDA-certified organic products that extends across several categories. Loren Weinstein, director of private label/branding at ShopRite, which operates more than 270 stores in the eastern U.S., says the retailer is committed to the brand and growing it based on consumers’ needs. “There is really no limit on the items we want to add to the brand,” Weinstein says. For its efforts, ShopRite is the recipient of our Best New Organic Food Product or Line. Products in the Wholesome Pantry Organic line include everything from pasta sauce to banana chips. As part of Wholesome Pantry, ShopRite also introduced a free-from line that includes products void of 110 ingredients and contains no artificial additives, flavors or preservatives. Since launching, the company has introduced over 210 products as part of the line. The retailer says the new line has been one of the fastest-growing private brand lines launched in its 70-year history. “One of the most rewarding elements of the launch of this brand has been the enthusiastic response we’ve

Store Brands / November 2017 / www.storebrands.com

received from our customers,” Weinstein says. “Whether they are contacting us directly to talk about their favorite Wholesome Pantry purchases, or engaging with us on social media about Wholesome Pantry recipes or other promotions, they’re excited about the line, and also at the prospect of having greater access to value-driven organic and better-for you options.” Wholesome Pantry was in the works for two years. Weinstein says ShopRite’s store brand decision makers went to the drawing board to come up with not only organic and free-from products that hit on current taste trends, but products that also delivered on quality and value.

Best New Free-From Food or Line The Kroger Co. — Simple Truth Low Cow Lite Ice Cream “Once we tasted the final sample, we knew it was a winner,” says Kristal Howard, head of corporate communications and media relations for Cincinnati-based The Kroger Co. Howard is talking about Kroger’s Simple Truth Low Cow Lite Ice Cream, which the retailer rolled out in June. The ice cream is not only low calorie (240 to 280 calories per pint), it’s high in protein (24 grams per pint). It also contains 75 percent less fat and 55 percent fewer calories than regular

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COVER STORY: BEST OF...AWARDS ice cream. It is non-GMO, gluten free and made with no artificial ingredients or preservatives. “Our customers want to have their cake and eat it too,” Howard says. Simple Truth is Kroger’s private brand line of organic and natural products, which debuted in 2012 and is a $1.7 billion brand. Flavors in the Simple Truth Low Cow Lite Ice Cream line include birthday cake, chocolate, lemon cake, mint chocolate chip, sea salt caramel and vanilla bean. “We know our customers expect it all: clean label, nutritional benefits and taste — all at an amazing value,” Howard adds. Kroger’s customers — and consumers in general — also want and expect innovative private-branded products, and Simple Truth Low Cow Lite Ice Cream is just that. Kroger’s product is the recipient of our Best New FreeFrom Food or Line. Simple Truth Low Cow Lite Ice Cream has been compared to national brand Halo Top Ice Cream, which is also low in calories and high in protein. But Kroger’s private brand sells for $3.99 a pint, at least $1 less than Halo Top. “Customers are surprised by the creaminess and the bold flavors from a low-calorie, high-protein ice cream,” Howard says. “This ice cream has done just that, and our customers are reacting very positively to it.” The packaging is fun and eye-catching — far from the old days of private brand packaging. “We wanted to create an eye-catching, memorable package with a lot of personality and make it fun,” Howard says.

Best New FreshPrepared Foods H-E-B — True Texas BBQ At many grocery retailers, takeaway fresh-prepared foods served from hot or cold bars have evolved into “grocerants” with made-to-order meals and in-store seating. But only a few supermarket chains have created destination restaurants. San Antonio, Texas-based H-E-B, known for its locally made private brand products, has done just that with its new instore True Texas BBQ fast-casual restaurants. Launched last year, True Texas BBQ quickly earned rave customer reviews on Yelp in a state known for its barbecue connoisseurs. “The food was absolutely amazing,” wrote a young mom in Killeen, Texas. “I didn’t expect BBQ from a supermarket to be good,” acknowledged a woman in Austin, Texas. “Honestly, [it’s] better than some of the area BBQ restaurants. The brisket macaroni and cheese is divine.” In nine H-E-B stores so far, the True Texas BBQ restaurants include plenty of seating, with décor reflecting the vibe of the locale. Though there is variation from one location to another, the menus typically feature barbecued brisket, smoked turkey breast, St. Louis ribs, sauced pulled pork and sauced chopped brisket — sold by the half pound; “Texas-sized” baked potatoes with a variety of meat toppings; Texas sides such as coleslaw, potato salad, brisket beans, creamed corn and green beans; and a selection of sandwiches. Customers normally order their food and pick up their meals at the counter. But in August, a True Texas BBQ restaurant opened as part of a new 118,000-square-foot H-E-B store in San Antonio and became the first H-E-Bowned entity to offer drive-thru service. This location is also the first True Texas BBQ to offer a Tex-Mex breakfast of different types of tacos with fillings ranging from egg and BBQ sausage to brisket hash.

“We know our customers expect it all: clean label, nutritional benefits and taste — all at an amazing value.” — KRISTAL HOWARD, THE KROGER CO.

Store Brands / November 2017 / www.storebrands.com

COVER STORY: BEST OF...AWARDS

(Above) H-E-B’s True Texas BBQ is drawing rave reviews. (Right) Target’s Simply Balanced Organic and Fair Trade Flavored Herbal Tea is notably on-trend and innovative.

We’re honoring H-E-B for Best New Fresh and FreshPrepared Foods for several reasons. Launching a new barbecue chain in Texas — and a popular one at that — requires moxie as well as the skill and recipes to pull it off. H-E-B has not only earned customer accolades for True Texas BBQ, but also for its new drive-thru, something few grocery retailers have attempted The chain understands that contemporary consumers prioritize convenience and choices as well as great food.

Best New Beverage Product or Line Target — Simply Balanced Organic and Fair Trade Flavored Herbal Tea Rich in antioxidants, long enjoyed for promoting relaxation and conversation as well as good health, herbal tea delivered in tea bags is comfortably familiar. Yet Minneapolis-based Target Corp.’s private brand Simply Balanced Organic and Fair Trade Flavored Herbal Tea also breaks new ground. Launched in fall 2016, the product line addresses the wellness, environmental and social responsibility concerns of contemporary consumers while also providing a broad assortment of flavors: Breakfast Blend, Chai, Green, Peach Honey, Orange Spice, Mint, After Dinner, Snooze & Snuggle and Voice Tamer. “We want to help our guests who are interested in leading a more wellness-focused life do so, which is why

Store Brands / November 2017 / www.storebrands.com

we offer a selection of natural, organic and sustainable products that are accessible and affordable,” notes a Target spokeswoman. “We created the Simply Balanced Organic and Fair Trade Herbal Tea assortment — requiring both USDA organic and Fair Trade certifications — to provide guests more responsibly sourced, great-tasting and affordable products.” Because the private brand tea assortment is notably ontrend, innovative, delicious, convenient and an excellent value, we have chosen Target’s Simply Balanced Organic and Fair Trade Flavored Herbal Tea as the Best New Beverage Product or Line. The herbal tea assortment is Fair Trade certified, which means that farmers and others involved in the harvesting and production of the line make a fair price for the product, that national and international labor protections are adhered to, and that workplace safety and environmental sustainability are enforced priorities. On top of that, the product line’s organic certification assures consumers that the tea is non-GMO and meets rigorous pesticide restrictions. What’s more, the line’s varied assortment ensures that there is something for every herbal tea lover. The top sellers, according to Target, include Breakfast Blend, Green, Peach Honey, Mint, and Snooze & Snuggle. New flavors will be added to the line in 2018. The tea is manufactured by Mother Parker’s Tea & Coffee. As the Target spokeswoman explains, “Guests who purchase Simply Balanced Organic and Fair Trade Flavored Herbal Teas are looking for simple goodness and delicious ways to eat well, including eco-friendly, organic, ethical and functional products that positively impact their bodies and the environment.”

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COVER STORY BEST OF...AWARDS

Walgreens Boots Alliance’s Botanics line harnesses “the power of plants.”

Store Brands / November 2017 / www.storebrands.com

Best New Store Brand Non-Food Product or Line Walgreens Boots Alliance — Botanics When it comes to beauty care, Deerfield, Ill.-based Walgreens Boots Alliance is differentiating its products to appeal to different consumers. That includes Botanics, which is being rolled out across Walgreens stores this year. Promoted as “harnessing the power of plants,” the Botanics brand targets the growing number of consumers who care about whether synthetic or natural ingredients are present in the personal care products they use. Within the brand, there are several lines, identifiable by color coding on the packaging, including 100% Organic with Rosewater (green), All Bright with Hibiscus (pink), Hydration Burst with Clary Sage (blue), and Radiant Youth with Gingko (purple). The variety of fragrances and formulations satisfies

COVER STORY BEST OF...AWARDS consumer expectations for personalized, customizable products. All of the skincare products in the brand are cruelty-free, meaning that they are not tested on animals; many are USDA certified-organic, indicating that they are non-GMO and meet various stringent sustainability criteria; and some are vegan, meaning that no animal-derived substances, even beeswax, are used in their formulation. We have chosen Walgreens Boots Alliance’s Botanics brand as the Best Store Brand Non-Food Product or Line because of its innovation, which reflects its response to many different trends simultaneously: natural and organic; the rise of veganism and the flexitarian movement, in which people strive to consume more plant-derived products; and clean-label simplicity in ingredient decks and packaging design. The different color-coded lines within the brand further target different demographic groups, from young adults to aging consumers. The Botanics brand, in addition, has garnered excellent online reviews. For example, the Botanics 100% Organic with Rosehips Nourishing Facial Oil for All Skin Types earned 4.5 out 5 stars. As one woman commented, “I absolutely love this organic facial oil and use it first thing in the morning after my shower and last at night after

The variety of fragrances and formulations satisfies consumer expectations for personalized, customizable products. washing my face. I was skeptical at first [about] using an oil, thinking it would ‘break out’ my skin. However, that is definitely not the case here. It moisturizes my skin and gives it a lovely glow that lasts.

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Store Brands / November 2017 / www.storebrands.com

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COVER STORY BEST OF...AWARDS

Best Store Brand Marketing Campaign Stop & Shop, Giant and Hannaford — Limited Time Originals Program Although it is not uncommon for U.S. supermarkets to offer seasonal store brand items and many chains have come to understand the power of scarcity marketing to drive demand, few retailers can match the success of Ahold Delhaize’s Limited Time Originals Program, which is available at Quincy, Mass.based Stop & Shop stores and the retailer’s other U.S. banners. Every six weeks throughout the year, the Limited Time Originals Program focuses on a different flavor or two and features 30 to 60 unique store brand items in that flavor profile. In October, Pumpkin- and HoneyCrisp Apple-flavored products were showcased. Before that, the highlighted flavors included Salted Caramel, Limoncello, Toasted Coconut, Twisted Chocolate and Hot. “The idea for Limited Time Originals came from asking ourselves how to bring excitement to our customers,” explains Juan C. De Paoli, senior vice president for own

brands at Ahold Delhaize’s Retail Business Services. “We believe in the motto: ‘Perfecting the expected and inspiring with the unexpected.’ ” The Limoncello program, for example, ran in midsummer and included a wide assortment of private brand products such as Limoncello Extra Virgin Olive Oil, Limoncello Ice Cream Sandwiches, Limoncello Artisan Bread, Limoncello Risotto and, of course, Limoncello Lemonade.

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From our farms, to homes across America. ACORSA USA, American subsidiary of DCOOP, operates as its importer, distributor, sales and marketing division in the US. DCOOP is the largest Spanish producer of extra virgin olive oil and table olives in the world. We are a cooperative of more than 75,000 families of farmers. 100% of our olives are coming from our farms, which allows us to have a complete traceability of the production process (from the harvest to the final product) and to keep consistency of the quality year after year. With an average production of 300,000 tons of olive oil and 85,000 tons of table olives, we have the capabilities to supply the many with a wide variety of consumer sizes and packaging designs.The company has focused on just producing extra virgin olive oil and table olives for more than 100 years. All this history is reflected in its superior quality products, state-of-the-art facilities, and commitment to environmental sustainability ACORSA USA, based in Fort Lee, NJ and with presence in the US since 2003, has been supplying top retailers and food service distributors countrywide through its 14 distribution locations since then. We have the experience, the knowledge and the resources to provide a premium service Thanks to our know-how in the industry, ACORSA/DCOOP has been able to help maximize profitability for retailers and food service distributors (both under our brand or private label), by ensuring continuity of product availability and consistent quality.

Store Brands / November 2017 / www.storebrands.com

Behind YOUR BRAND is the world’s largest PRODUCER of olives oil and table olives. To know more about ACORSA USA and its capabilities visit us on PLMA, booth # 2439 sales.usa@dcoop.es ACORSA USA, 2200 Fletcher Ave. Suite 702, Fort Lee, NJ 07024 T: 201-944-0474

Best Use of Digital or Social Media to Promote Store Brands Aldi — Hello Healthy Last January, Aldi proposed a New Year’s resolution for the year. The German grocer, with U.S. operations based in Batavia, Ill., resolved to help Americans eat healthier by rolling out its “Hello, Healthy” initiative. Aldi conducted a survey of more than 1,000 consumers and found that 56 percent of New Year’s resolutions are based around healthier eating, weight loss or fitness. But Aldi also found that 91 percent of Americans who make such resolutions fail to maintain them through the year, mainly due to a lack of planning and the perceived high costs associated with healthy food. So, in addition to Aldi expanding its fresh produce and organic offerings at its 1,600 stores in 35 states as part of the “Hello Healthy” campaign, the retailer also implemented an online resource — ALDI.us/ hellohealthy. From January through March, visitors to the website could find weekly meal plans, new recipes, videos, and tips on how to help them plan healthy meals and save money by using the retailer’s products as ingredients. For its efforts in educating consumers about healthy eating and promoting its store brands in the process, Aldi is the recipient of our Best Use of Digital or Social Media to Promote Store Brands. “We want to be an ally in healthy living for our shoppers,” says Liz Ruggles, Aldi’s spokeswoman. “Aldi is always looking for ways to improve and expand its offerings so healthy choices are easy to find and are easy on [consumers’] budgets.” While Aldi is not trying to become a health food store, it is trying to appease its customers who want better-for-you options with affordable private brands. “Hello Healthy,” with its educational digital component, was a resourceful vehicle to do just that.

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Best New Store Brand Packaging Innovation Tops Friendly Markets — Compostable Coffee Pods As part of Tops Friendly Markets reformulation of its Tops brand of privatebranded products late last year, the Williamsville, N.Y.-based grocer introduced its own line of 100 percent compostable single-serve coffee pods under the Tops Coffee House Creations brand label. The compostable coffee pods, which come in 11 flavors, are selling out. “The response from Tops’ customers has been resounding,” says Nicky Walsh, director of business development of private brands for Tops Friendly Markets/

www.storebrands.com / November 2017 / Store Brands

COVER STORY BEST OF...AWARDS Daymon. “In just 11 months, Tops has sold just under 6 million pods.” Tops teamed with one of the world’s largest coffee groups, Massimo Zanetti Beverage USA, on the project. Massimo has been in business for more than 35 years. Made of 100 percent renewable sources, the compostable single-serve pods help to divert food waste from landfills and incinerators to composting that turns it back into nutrients that help improve the soil for farmers and gardeners, according to Tops. Even the coffee ring is made up of coffee bean skins or “chaff ” that previously used to go to waste. Tests of the compostable pods in municipal composting showed that they can break down in as few as five weeks in well-managed composting systems. Tops Friendly Markets is the recipient of our Best New Store Brand Packaging Innovation for the compostable single-serve coffee pods. “We don’t have the chance very often to be the first to market with something because a lot of companies are working on similar things. But this is one of those chances,” says Diane Colgan, Tops’ senior vice president of marketing and decision report. “The ability to do this is phenomenal for us.”

The compostable single-serve pods help to divert food waste from landfills and incinerators. Since the product launched, Tops has been educating consumers with on-going ad promotions, social media posts and in-store displays. “As the first retailer in the United States to launch a 100 percent compostable pod, Tops wanted to ensure that its coffee enthusiasts could see from the moment they picked up the package that not only were they going to be enjoying a 100 percent pure Arabica premium coffee, but also could feel good about the important environmental impact they were making with each cup they brewed,” Walsh says.

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Leadership in Sustainability/ Food and Beverage The Kroger Co. — Sustainability Lives Here Last April, in honor of Earth Day, The Kroger Co. launched Sustainability Lives Here, a program involving events and customer engagement to help highlight easy, earth-friendly and sustainable living practices. A website dedicated to the program, SustainabilityLivesHere.com, features an in-depth look at Kroger’s sustainable supply chain initiatives; recipes using eco-friendly products to create healthy dishes; advice to consumers on how to make small changes in how they shop, prepare and store food so they throw away less; and, at the time, more than $60 in digital coupons targeted toward eco-friendly certifications like Fair Trade, Rainforest Alliance, as well as organic and natural products. The program aligns with Kroger’s corporate sustainability focus, which includes goals for zero waste across company stores and zero hunger in the communities that Kroger serves. We are recognizing Kroger for its Leadership in Sustainability/Food and Beverage. “Sustainability Lives Here is a customer engagement and awareness initiative that highlights easy, earth-friendly practices that each of us can do,” says Kristal Howard, head of corporate communications and media relations for Cincinnatibased Kroger. “At Kroger, we are fortunate to have many leaders and associates who are passionate about taking care of our planet, as well as external partners who are committed to sustainability. We all work together to give our customers more ways to make sustainable choices when they shop with Kroger.” Kroger’s goal to be zero waste by 2020 includes diverting waste from landfills, reducing packaging, recycling plastic bags and donating safe, perishable foods to food banks. “Kroger has made significant progress on its journey to zero waste. Companywide, we achieved a 78 percent diversion rate in 2016, up from 70 percent in 2015,” Howard says, noting that Kroger uses the Environmental Protection Agency’s definition of “zero waste” as 90 percent diversion from landfills. “Our associates are the key to our success, so we continue to raise awareness and drive engagement among our people to reduce waste in our stores, manufacturing plants, distribution centers and other facilities.” On a website, sustainability.kroger.com, a progress update gives

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www.storebrands.com / November 2017 / Store Brands

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consumers insight into Kroger’s sustainable efforts, such as its goal to transition to a 100 percent cage-free egg supply chain by 2025. “Today, our customers want to know the source of their food and feel good about their choices,” Howard says. “They are also more focused on the environmental and social impacts of the food they eat. As one of the world’s largest food retailers, Kroger fosters sustainability and transparency in its supply chain. We set ambitious goals and targets, share our progress and stories along the way, and keep an open dialogue. By developing and supporting more transparency in our supply chain, we believe we positively affect communities far beyond the walls of our stores.”

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Leadership in Sustainability/Non-Foods Roche Bros. Supermarkets — ECOgrade bag Wellesley, Mass.-based Roche Bros. understands that the grocery bags a retailer gives its customers are an important part of its brand. Last spring, the chain handed a customer its 5 millionth Roche Bros.-branded ECOgrade bag, a non-plastic grocery bag made from organic material and minerals. The bags, manufactured by GXT Green Inc., are photodegradable, meaning they will begin to degrade in 20 days and will fully degrade within 240 days from exposure to sunlight. “The checkout is the finale of the customer’s experience in the store, and often top of mind when they reflect on their visit,” says Dena Kowaloff, director of marketing for Roche Bros. “It is important we leave them with a good final impression of Roche Bros. each time they shop with us. A high-quality shopping bag that holds the food securely without tearing is critical in getting the food safely into their kitchen, and a bag that has the environmental benefits we see with the ECOgrade products also reinforces the message that Roche Bros. cares about the communities where it operates.”

Store Brands / November 2017 / www.storebrands.com

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DIFFERENTIATING YOUR STORE Roche Bros. began using the ECOgrade bags in 2016. Jeff Dinneen, who recently retired as facilities manager at Roche Bros., led the effort to find a sustainable and environmentally friendly grocery bag. “Jeff, a passionate environmentalist, learned about the ECOgrade bags and presented the idea to Roche Bros., and [the company was] happy to try the program,” Kowaloff says. “Pleased with the results, we have steadily increased our use of the bags over time. Not only are the bags environmentally friendly and affordable, the vendor GXT Green is also headquartered near us in Massachusetts so it is local as well.” For its use of the ECOgrade bag, we are honoring Roche Bros. for its Leadership in Sustainability — Non-Food. Kowaloff says most customers who shop at Roche Bros. didn’t notice the switch to the ECOgrade bags, which she says Roche Bros. counted as an endorsement. “Given that we were able to change the bags to provide an option with superior sustainability and the same high-quality checkout experience for our customers, we count that as a win,” she adds. “Those that have noticed the change or heard about the program have been quite complementary.” Kowaloff says Roche Bros. consistently looks to improve its operations on an ongoing basis, including opportunities to reduce environmental impact and employ more sustainable materials.

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Leadership in Social Responsibility Wegmans Food Market Under the leadership of the late Robert Wegman, Rochester, N.Y.-based Wegmans Food Markets grew into one of the largest private companies in the United States, not to mention one of the most popular regional retailers for its private brands. Wegman, who died in 2006, led the retailer for nearly 50 years. He was the son of Wegmans Food Markets co-founder Walter Wegman. But Robert Wegman’s legacy is rooted in his altruism as much as it is in being an admired leader in the supermarket industry. His philosophy on living life — “Never think about yourself; always help others,” he said — has permeated the retailer’s operations. Wegmans Food Markets is known for its continuous efforts to feed the hungry, reduce food waste and recycle. In a consumer poll conducted last spring, Wegmans Food Markets was ranked as the top company in America for its corporate social responsibility efforts. For its good intentions, we are recognizing Wegmans Food Markets for its

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Leadership in Social Responsibility. “Empowerment and leading by example are key,” says Jack Depeters, Wegmans’ senior vice president of store operations. “Robert Wegman’s philosophy has been guiding our company for many years. He led by example, and we model our actions after his. Our people are empowered to do the right thing; to make decisions that will best serve the customer, our fellow employees and the communities where we have stores.” Wegmans Food Markets donates day-old bread, not-quiteperfect produce, yogurt that is close to date and other items daily to over 300 local food banks, food pantries and soup kitchens near its stores. “It’s only possible through our people,” Depeters says. “We want the neighborhoods where we have stores to be healthy and vibrant. Our stores are empowered to help with programs that feed the hungry, help young people succeed and promote healthy eating and activity.” In 2016, Wegmans Food Markets launched a zero waste pilot program at one store because it saw the opportunity to reduce the waste coming from its stores. “For food waste, we saw an opportunity to improve what we were already doing and reduce food waste at the source by using more of the food in our stores, increasing local food donations, and improving composting programs,” says Jason Wadsworth, the retailer’s sustainability manager. “Similarly, we saw an opportunity to improve our recycling rate through existing programs by assigning ownership, educating our employees on the importance of these programs, and better communicating our progress and success.” At the start of its one-store pilot for zero waste, the average recycling rate at the store was 63 percent (material not sent to landfill), and the retailer set a goal of reaching 80 percent by year’s end. “We surpassed that goal, and for 2017 we’re aiming for 90 percent at the pilot store,” Wadsworth says. “We’re also rolling out the zero waste program to nine additional stores throughout the next two years. … Simply put, reducing waste is the right thing to do for our company, our customers, our people and the environment.” SB

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THE THEYEAR YEARININREVIEW REVIEW

‘DRAMATIC EVENTS’ HIGHLIGHT 2017 Amazon’s acquisition of Whole Foods and Lidl’s debut in the U.S. are two of our top 10 stories of the year By Lawrence Aylward

Brian Sharoff has seen plenty in his more than 35 years as president of the Private Label Manufacturers Association. But it has been a long time since Sharoff saw a year like 2017 in the private brands industry. “The two most dramatic events of the year were probably also the two most dramatic events of the last decade, mainly Amazon’s acquisition of Whole Foods Markets and Lidl’s arrival into the United States,” Sharoff says. In June, Amazon announced it was buying embattled Whole Foods, which was struggling and losing customers. In late August, the acquisition became

Store Brands / November 2017 / www.storebrands.com

official, and Amazon immediately lowered prices on many of Whole Foods’ store brands, adding some zing to the organic and natural foods retailer’s store traffic and sales. Amazon also began selling Whole Foods’ store brands on amazon.com. Also in June, Lidl, which operates more than 10,000 stores in 28 European countries, opened its first stores on U.S. soil. To date, Lidl has opened 38 stores on the East Coast and will probably open hundreds more in the years ahead. Based in Germany, Lidl offers a 90 percent assortment of private brands. Considering Whole Foods’ and Lidl’s considerable involvement in store brands, it’s easy to see why Sharoff describes their impact as “events.” In fact, Sharoff says he has to go back to 1991, when Walmart introduced Sam’s Cola, to recall a just-asdramatic happening in the private brands industry. Sam’s Cola was one of the first three store brands that Walmart launched in its grocery business to compete against juggernauts Coke and Pepsi. Like Sharoff, Store Brands also considers Amazon’s acquisition of Whole Foods and Lidl’s landing in the U.S. as two of the industry’s top stories of 2017. Here’s our list of the top 10 stories gleaned from our print and online coverage of the private brands industry this year:

2017 www.storebrands.com / November 2017 / Store Brands

THE YEAR IN REVIEW

Amazon didn’t waste any time lowering prices on Whole Foods’ products.

It was rumored to happen late in 2016, but didn’t. And then it did happen in June — Seattle-based Amazon purchased struggling Austin, Texas-based Whole Foods Market for $13.7 billion in an all-cash transaction. In August, when the transaction closed, Amazon officially became a major player in the brick and mortar grocery segment by gaining Whole Foods’ 470 stores. Amazon also became a major player in private brands by obtaining Whole Foods’ array of store brands, including its 365 Everyday Value line. While Amazon’s acquisition of Whole Foods put competitive grocery retailers on alert, what really made them shudder was that Amazon, with its potent e-commerce presence, immediately begin selling Whole Foods’ products online. Amazon also wasted no time in lowering prices on a selection of private-branded grocery staples

Store Brands / November 2017 / www.storebrands.com

across Whole Foods’ stores — doing so on the first day in an effort to lay waste to the “Whole Paycheck” label that Whole Foods had gained for being too expensive. In October, the Thasos Group, a data intelligence firm, said that foot traffic to Whole Foods increased 17 percent year-overyear during the week of the price reduction beginning on August 28. As of the week ending Sept. 16, the firm reported foot traffic at Whole Foods decelerated to 4 percent year-over-year, but remained elevated compared to the three weeks preceding August 28. It was also reported that Amazon had sold roughly $1.6 million in Whole Foods’ store brand products online in the first month of ownership. While the number is small compared to the $8 billion in retail sales that Amazon averages monthly, it signified a new revenue platform for Whole Foods and one that

grocery analysts expect to grow. It was also a message to competitors to embrace online grocery. But Amazon’s grocery business has a long way to go before it’s ranked with the heavyweights of the business. Amazon’s grocery sales are reportedly about $24 billion; Walmart, the nation’s largest grocer, sells about $250 billion annually in grocery. Walmart also announced in October that it was stepping up its online grocery business. It will be intriguing to see what Amazon’s next steps are for Whole Foods and its own private brands, including Happy Belly and Wickedly Prime. Regarding private brands, Ryne Misso, director of marketing for Market Track and a Store Brands columnist, said that Amazon’s acquisition of Whole Foods could further the growing positive perception of all private brands among consumers. “By making these high-quality private brands more accessible to average consumers, it is not out of the question that in the near future consumers may even prefer or seek out private brands over national brands,” Misso said.

Lidl landed like a rock star. When the Germany-based retailer opened its first U.S. stores on the East Coast last summer, hundreds of people gathered in line on the mornings of the days of the openings to be the first to shop in the sleek-looking new grocery stores. At a July store opening in

Norfolk, Va., consumer Lisa Melita said she was “counting the days” for the store to open. Melita had shopped at Lidl before in Europe. “Lidl says quality,” the 52-yearold said. The deep-discount retailer, with U.S. operations based in Arlington, Va., opened 40 stores

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Lidl‘s keepit-simple philosophy helps keeps prices low.

in Virginia, North Carolina, South Carolina, Delaware and Georgia. Lidl, which has more than 10,000 stores in 28 European countries, plans to open 100 stores by mid-2018. Lidl won’t say how many stores it plans to open nationwide, but it could be hundreds in coming years. Lidl aims to offer high-quality products at the lowest prices through its slew of store brands, which make up 90 percent of its assortment, including its premium Preferred Selection private brand. Lidl also wants to make grocery shopping more convenient for consumers with its 36,000 square-

A few days before Lidl opened its first stores on U.S. soil, its German counterpart, Aldi, announced it would embark on a $3.4 billion capital investment to expand from 1,600 to 2,500 stores nationwide by the end of 2022, perhaps trying to steal a little thunder from

Store Brands / November 2017 / www.storebrands.com

foot stores, (27,000 square feet dedicated to the sales area). And Lidl maintains that its product selection, featuring fewer SKU’s in each category, reduces clutter and makes buying decisions easier. “We keep it pretty simple,” said Will Harwood, Lidl’s U.S. public relations and communications manager. Lidl’s keep-it-simple philosophy permeates its operation, which impacts product prices. The company cuts costs wherever it can. All those windows in its stores? Well, they just allow for more natural light and less use of electricity. Simply, Lidl is big on cutting any kind of waste to pass the savings onto consumers. Todd Maute, a brand expert and partner at New Yorkbased brand agency CBX, said Lidl has done a good job of communicating quality, which is something that is tried and true to its operating model. “While Lidl really plays up price, what it hasn’t done, which is typical in the industry, is scream price as part of its packaging strategy,” Maute said. “Lidl screams quality product as its packaging strategy. … It’s a

recipe for success.” According to a German business newspaper, however, some of Lidl’s stores were struggling out of the gate. The newspaper, Lebensmittel Zeitung, cited “insider information” in reporting that some of Lidl’s U.S. stores were operating “frighteningly weak.” Harwood disputed the report, saying, “I can tell you that our launch to date has exceeded expectations. We are pleased with how customers have taken to our stores.” In October, the Wall Street Journal (WSJ), citing data from digital advertiser and data analyst inMarket, reported that Lidl had sprung a leak. According to inMarket, Lidl was drawing 11 percent of consumer visits to traditional grocers in nine markets in Virginia, North Carolina and South Carolina. By August, Lidl’s share of that traffic fell below 8 percent. On paper, Lidl has many things going for it, including its private brands. Lidl also realizes it will have to make some adjustments to its product offerings to appease American consumers.

the new kid on the block. Like Lidl, Aldi, with U.S. operations based in Batavia, Ill., offers a 90 percent assortment of private brands, including Fit & Active, Friendly Farms, SimplyNature, Clancy’s and many others. Earlier this year, Aldi also announced a $1.6 bil-

lion program to remodel 1,300 stores by 2020. If the deep-discount chain meets its goal of 2,500 stores, it will become the third-largest grocery chain by count (behind Walmart and The Kroger Co.) and serve 100 million customers per month. “We pioneered a grocery model built around value, convenience, quality and selection, and now ALDI is one of America’s favorite and fastestgrowing retailers,” said Aldi CEO Jason Hart. “We’re growing

THE YEAR IN REVIEW at a time when other retailers are struggling. We are giving our customers what they want, which is more organic produce, antibiotic-free meats and fresh healthier options across the store, all at unmatched prices up to 50 percent lower than traditional grocery stores.” Aldi plans to expand to 2,500 stores by 2022.

Walmart expects e-commerce sales to grow 40 percent next year.

These two headlines appeared on the Store Brands’ website on the same day in late September: • Amazon.com amps up sales of Whole Foods store brand items. • Wal-Mart’s Jet.com to launch own grocery brand. The headlines are a telltale sign of where online grocery is heading with private brands playing a key role. About a month after Amazon officially acquired Whole Foods

Store Brands / November 2017 / www.storebrands.com

in late August, it had sold about $1.6 million in Whole Foods’ store brand products online, including 365 Everyday Value, Whole Foods Market, Engine 2 Plant-Strong and Whole Trade. Purchased by Bentonville, Ark.-based Wal-Mart last year for $3 billion, the e-commerce site Jet.com launched its own sleek grocery brand in October called Uniquely J. The private brand will include more than 60 food and household items including

nonperishable grocery items like olive oil and coffee pods as well as packaged goods like laundry detergent and paper towels. Walmart also announced in October that it expects its e-commerce sales to grow 40 percent next year. Walmart said it would add 1,000 online grocery locations in the U.S. through its fiscal year, which ends January 2019. When Amazon announced in the spring that it was going to acquire struggling Whole Foods, many grocery experts declared that competitive retailers had better get their online grocery houses in order. “The world is changing, and it’s changing very rapidly,” said Samir Bhavnani, vice president at 1010data, a data management and analytics firm. “Any retailer that acts like it’s 1995 is in big, big trouble.” So what does all of this mean for private brands? A few things: • Consider that millennials are likely to lead the charge in online grocery, considering that many of them grew up

THE YEAR IN REVIEW carrying around iPhones, not teddy bears. • Also, according to several studies, millennials are embracing private brands more than any other age group and have a greater propensity to be heavy buyers of such products. And it’s not just millennials. Bhavnani said he expects aging baby boomers, especially those with disabilities, to take more advantage of online grocery in the future. “Private label manufacturers and retailers have a very strong opportunity to built private brands [through online grocery],” Bhavnani stated. Amazon and Walmart aren’t the only two grocery retailers making a push in e-commerce. Costco Wholesale recently began CostcoGrocery, which will provide two-day delivery on dry goods and sundries, and same-day delivery for fresh foods, produce and dry goods through a partnership with Instacart. BJ’s Wholesale Club introduced two new websites dedicated to showcasing the “value, quality and assortment” of its two private brands — Berkley Jensen and Wellsley Farms. “The new websites allow BJ’s to tell the story of these brands, educating members on the quality and assortment while allowing them to research products and shop,” said Rafeh Masood, senior vice president and chief digital officer for BJ’s. Aldi also announced this summer that it was teaming with Instacart to get into the grocery delivery game. Aldi is testing the service in Atlanta, Los Angeles and Dallas, and the retailer said it plans to roll out delivery across the nation if it is successful in the pilot markets.

Store Brands / November 2017 / www.storebrands.com

The Kroger Co.’s lawsuit against Lidl for trademark infringement made national news. “Store-brand smackdown,” read a headline in the Washington Post. Kroger filed the lawsuit in July, shortly after Lidl opened its first stores on the East Coast, claiming that Lidl was infringing on its Private Selection brand with its Preferred Selection brand and causing confusion among customers. Cincinnati-based Kroger, the nation’s second-largest grocer, asked the federal court for an injunction to force Lidl to stop selling its Preferred Selection products immediately, but the judged ruled otherwise. The case was scheduled for a bench trial on Jan. 11, but Kroger dropped the lawsuit in September. The lawsuit came and went quickly, but it said a lot about the progression of private brands, according to Todd Maute, a partner at New York-based CBX, a brand agency and retail consultant. Maute said the lawsuit reminded him of years ago when the owners of top consumer product brands always went after what they saw as trademark infringement on the part of private brand emulators. But this lawsuit was different — “A twist on the prevailing dynamic,” Maute said —because one of the top owners and creators of private brands was taking a fellow private brands competitor to court. Maute said the lawsuit shows just how far private brands have come.

“Here we [had] one major grocer suing another over private label trademarks,” he said. “I see it as an indication of how far private label has come, at least with respect to those retailers that truly understa

“I see [the lawsuit] as an indication of how far private label has come.” — TODD MAUTE nd its power and potential.” Maute said nobody could fault Kroger for trying to protect it’s very successful 20-year-old store brand. He also credited Lidl for not backing down and wanting to protect its own store brand as it continues to open stores in the U.S. Maute said he remembers reading a story several years ago about how Disney lawyers forced a small Florida daycare center to whitewash an image of Mickey Mouse that the center had had painted on the side of its building. “Is that aggressive? Sure,” Maute said. “However, nobody could accuse Disney of trademark apathy. Without commenting on the merits of the Kroger-Lidl case, I say kudos to those retailers that fully embrace their store brands — up to and including

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THE YEAR IN REVIEW

protecting them in court.”

In January, Store Brands provided exclusive analysis of the “The Power of Private Brands,” an in-depth report from the Food Marketing Institute, IRI and Daymon stating that private brands at supermarkets and regional grocers, hampered by deflation and a decline in grocery trips, haven’t kept up with national brand sales the last two years. But the report stressed that supermarkets and grocers can take advantage of the growth potential of private brands by customizing products, recognizing the need to invest to drive store brand innovation and embracing a wider range of promotion vehicles, including emerging social media platforms. “It will be a lot of hard work and will require grocery retailers to think differently about their store brands, but there is a lot of opportunity for them [with private brands],” said Mark McKeown, client insights principal at IRI. Kristof Duna, director of private brands at Merchants Distributors Inc. in Hickory, N.C., and co-chair of the FMI Private Brands Council’s research and education committee, said the research justifies what he is seeing in the marketplace with private brands and grocery. But while grocers have lost dollar share, Duna believes they can regain it by investing more in store brand innovation. “There are still retailers that want to take the benefits of

Store Brands / November 2017 / www.storebrands.com

Deflation had an impact on the decline of private brands in eggs, dairy and cheese.

private brands without really looking at the investment needed to keep them on the cutting edge,” Duna said. Dave Harvey, Daymon’s vice president for global thought leadership, said retailers simply need to think differently to distinguish their private brand offerings to increase sales. “What will drive future growth in private label are categories actually being created by retailers themselves,” Harvey stated. Here are key highlights from the study: • Nearly all U.S. households – 96 percent — are purchasing some form of private brand at retail outlets that sell food products. • Private brands performance has been on a declining trajectory at grocery that outpaces that of national

•

• •

• • •

brands, and the performance gap has widened over time. Much of the private brand decline at grocery was due to the deflationary impact of dollar sales in dairy, eggs and cheese. Product customization is the biggest opportunity for private brand growth. The industry views the biggest threat to private brands to be a lack of capital investment to drive innovation. Organic private brand represents a small but growing segment of the industry. Millennials are embracing private brands and are more likely to be heavy buyers. The best store brand quality perceptions belong to perimeter categories — 74 percent quality perception for dairy, 70 percent for fresh produce and 68 percent for bakery.

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THE YEAR IN REVIEW

Whole Foods could help lead the growth of store brands in coming years.

Several industry insiders and experts expect private brand sales and market share to surge at supermarkets in the next several years. Several reports cited 2016 supermarket store brand sales as being flat or slightly below sales when compared to 2015. But speaking at a conference this summer, Diana Sheehan, director of Kantar Retail’s grocery channel research team, cited an influx of privatebranded products on the coasts and an increase of millennial shoppers as her reasons for feeling bullish about private brands in the United States. “My expectation is you are going to see private label sales increase at a faster rate in the next five years than in the past five years,” Sheehan said Sheehan said while store brands have performed well at retailers throughout the Midwest, the East and West coasts have yet to embrace private brands. But she said that is about to change with Lidl’s arrival in the U.S., Aldi’s plans for expansion and the impact of Retail Business Services, a company created from the Ahold USA and Delhaize America merger, which already has a strong presence on the East Coast but has plans to ramp up its private brands through its new “Better Together” strategy. “I think you will see a lot more

Store Brands / November 2017 / www.storebrands.com

investment and more creativity [on the East and West coasts],” Sheehan said, noting that the impact of Lidl, Aldi and Retail Business Services could spur other regional and national retailers to invest in their private brand programs. Brian Sharoff, president of the Private Label Manufacturers Association, expects store brand retailers of all sorts and sizes to invest in their store brand programs and make consumers more aware of them to compete with privatebranded powers Amazon/Whole Foods and Lidl. But Sharoff said it will take a few years for the surge to show up as statistical growth. “As is well-known, both Amazon/Whole Foods and Lidl are strongly committed to private label,” Sharoff said. “Both are game-changers, as they bring entirely new levels of complexity to America’s retail landscape. These are two very powerful entities and they are already challenging established retail leaders across every channel to increase their

commitment to private label as well, so there is plenty of reason for optimism among private label manufacturers.” Sharoff doesn’t expect massive growth of 20 percent, which he added is “not realistic, but if private label goes up a point compared to previous years, that would be significant.” Don Stuart, co-founder of Cadent Consulting Group, which specializes in private brands strategies, said the time is ripe for “significant private brands acceleration” in grocery. “Since 1980, private label has been through peaks and troughs. Its share rises when there’s a recession and falls when there’s a recovery,” Stuart said. “Time and time again this has proven to be the case. Up until now.” Stuart said Amazon and Whole Foods will “lead the charge” in advancing store brands but other entities will also play a role, including brand-agnostic millennials who buy private brands, deep discounters, traditional retailer reaction to deep discounters to win back share, growth on the grocery store perimeter and new entrants like online retailer Brandless.

Costco Wholesale and Sam’s Club are the two largest warehouse club chains in the country. Issaquah, Wash.based Costco has its popular Kirkland Signature private brand line, which includes an array of

products and accounts for nearly 25 percent of Costco’s business. Up until recently, Bentonville Ark.based Sam’s Club had — count ’em — 21 store brands. In April, Sam’s Club announced the revamping of its private brands’

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THE YEAR IN REVIEW program and that Member’s Mark, which has been around for 20 years, would be its lone brand. Some industry insiders saw Sam’s Club’s move as one to directly compete with Costco’s Kirkland brand. Sam’s Club formed, essentially, a new private brands team to spearhead the revamp, which will touch about 1,200 products in food, beverage and general merchandise by the end of 2018. It includes 600 new products — 300 introduced in late 2016 and 2017 and 300 in 2018 — and enhancements to 600 others. The revamp won’t stop there. Sam’s Club will continue to develop and introduce new products in the coming years. Sam’s Club, a 600-store chain founded

in 1983, has added everything from fairtrade-certified 100 percent Arabica coffee to organic virgin coconut oil to smoked pulled pork to honey sourced from a U.S. bee cooperative. Chandra Holt, who spearheaded Sam’s Club’s private brand makeover before being promoted in the company, said she was often asked if the warehouse chain upped the ante on Member’s Mark to compete with Costco’s Kirkland Signature. “We have a number of competitors that do a good job with their private label,” Holt said. “But I don’t want any one competitor to define what we are going to do. We are going to do what’s best for our members.”

In June the Defense Commissary Agency (DeCA) debuted its first products, bottled water and kitchen and trash bags, under its first store brand lines — Freedom’s Choice (food products) and HomeBase (nonfood items). The products in the lines include everything from beans to rice to cheese to snacks to shelf-stable juice to paper plates. DeCA chose Grand Rapids, Mich.-based SpartanNash as its partner to introduce private brands for the first time in its 25-year history.

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THE YEAR IN REVIEW

Randy Chandler “We want [our patrons] to view Freedom’s Choice and HomeBase as their brands,” said Randy Chandler, the principal deputy of sales, marketing and policy for Fort Lee, Va.-based

DeCA, which operates a worldwide chain of stores providing groceries to military personnel, military retirees and their immediate families. “They have devoted their lives to the military, and these brands are devoted to them.” DeCA also introduced TopCare products including first aid supplies, vitamins, over-the-counter medications and beauty care items. TopCare is a store brand supplied by Elk Grove Village, Ill.-based Topco Associates. Perhaps there is no one prouder of DeCA’s new store brands than Chandler, whose father fought in the Vietnam War as a member of the Marine Corps. Chandler wondered if he would ever see his father again when he left for Vietnam in 1967. Fortunately, Chandler’s father returned home safely. Chandler, aware that many of his father’s comrades

didn’t return home alive from Vietnam, developed an appreciation for those in the military — a gratefulness that has only deepened as he has grown older. Chandler is passionate about what he can do through his profession to help those who are serving in the military and those who have served. Through DeCA, he wants military personnel to receive the best food at the best prices at each of the 238 commissaries that are located in 13 countries. He has fond memories when his family shopped at the commissary during his father’s military tenure. “We want patrons to come here to get our store brands because they know they can’t get them anywhere else,” Chandler said. “I know the commissary meant a lot to our family. And that’s what drives me every day to help deliver value to our patrons.”

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Jamie Gott, Ice River Springs’ CEO. “Since 2011 we have diverted millions of pounds of plastic from going into landfill.” Ice River Springs® has a strong record of continuous improvement. Since 2002 they have reduced both packaging materials by 53% and the amount of energy used to produce a case of bottled water by 84%. Their customers benefit by selling private label and branded products at the leading edge of corporate sustainability practices. With 12 bottling plants strategically located near major markets, and complete vertical integration from the water source to preform, bottle and cap manufacturing, Ice Rivers Springs® delivers extraordinary value for retailers.

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THE YEAR IN REVIEW

When asked if adding an organic tier to their private brands would be worth retailers’ time, effort and money, Daymon’s Carl Jorgensen didn’t have to think long before replying — answering the question faster than you can say Peter Piper picked a peck of pesticide-free peppers. “You would be investing in the fastest-growing part of private brands,” said Jorgensen, Daymon’s director of global thought leadership/wellness. “Sure there is a cost in starting a new store

brand, but look at the opportunity.” Organic private brands represent a small but growing segment among supermarket chains and regional grocers. While organic represents only 6 percent of share of sales across private label food and beverage, it gained a half share point in 2016 at the expense of value and mainstream segments, according to “The Power of Private Brands,” a recent report from the Food Marketing Institute, Daymon and IRI. Private brands represent about 20 percent of overall food and beverage sales, but 30 percent among all organic items, the report stated. Several retailers have seized the own-brand organic opportunity with success. Among large supermarket chains, The Kroger Co. has one of the top private brand organic programs going. Kroger debuted its Simple Truth Organic line in 2012 and it has grown to be one of the largest-selling organic

ensembleiq.com

Store Brands / November 2017 / www.storebrands.com

brands in the country. Publix Super Markets debuted its organic and free-from store brand, Publix Green Wise, in 2003. Publix is growing the line carefully and strategically. In 2016, Publix introduced about 50 new products to the line, and about 100 new products were added this year. Karen Hall, Publix’s director of emerging business and private brands, said there is a “concerted effort” to expand the the line. Jorgensen said organic growth hasn’t come close to hitting its growth ceiling, his reason being that organic only has a 5 percent penetration rate among all retailers, which includes national brands and store brands. “That gives you an idea of how much white space there is,” he adds. SB Aylward, editor-in-chief of Store Brands, can be reached at laylward@

CANADIAN MARKET INSIGHTS

CANADA’S PRIVATE BRAND

B OM Store brands gained 5 percent in retail dollar sales in Canada in 2016, more than twice the growth of national brands

By Carolyn Schierhorn

n Canada’s $86 billion (in U.S. dollars) retail food and beverage industry, private brands are trending upward in both dollar sales and retail value share after a period of flat growth, while certain U.S.based multinational brands such as Hormel Foods’ Skippy Peanut Butter have abandoned the Canadian market. Canadians’ preference for local and fresh rather than processed food is contributing to these trends. Total retail sales of private brand fast-moving consumer goods (FMCGs) in the Canadian grocery sector increased 5 percent in the 52 weeks ending Jan. 7, according to New York-based market researcher Nielsen, while national brands grew just 2 percent in sales. In retail value share, private brand FMCGs rose from 18.0 percent to 18.4 percent between 2015 and 2016 in Canada, while declining from 17.7 percent to 17.5 percent in the United States. The relative robustness of store brands in Canada is not surprising given the country’s history of having powerhouse

own-brand products such as Brampton, Ontariobased Loblaw Cos.’ President’s Choice brand, which launched in 1984 and is distributed beyond the retailer’s 24 banners. The largest Canadian grocery retailer with estimated 2016 food sales of $22 billion (in U.S. dollars), Loblaw Cos. has been a pioneer in the concept of tiered private brands. In addition to President’s Choice, Loblaw banners still carry the value No Name brand, which debuted in 1978. In addition, the company introduced its superpremium gourmet Black Label brand in 2011, before top-quality grocery private brands became commonplace in North America. Cross-cultural influences also contribute to Canada’s strength in private brands. Because of the country’s close ties to Europe, known for its food activism as well as its highly regarded national cuisines, Canadian consumers embraced the organic, clean label, free-from, sustainability, hyperlocal and fair trade movements before they gained traction in the United States. These and other trends — such as consumers’

Quebec produces 70 percent of the world’s maple syrup, so it is fitting that Metro has a categorycrossing line of maple-flavored products.

www.storebrands.com /November 2017 / Store Brands

CANADIAN MARKET INSIGHTS

Metro is partnering with a local organic chicken farm on this cobranded private label line. consumers’ insistence on convenience and their propensity to balance healthful restraint with periodic high-calorie indulgence — have ignited much innovation in Canadian store brands, notes MarieFrance Gibson, the vice president of private label for Montreal-based Metro Inc., Canada’s third-largest grocery retailer. “As Canada is a multicultural country with a lot of links to France and England, it is the perfect place to test new concepts. And most of the time, innovations and new trends appear here before the U.S.,” adds Marie HorodeckiAymes, the director of design and packaging for Metro, which operates 1,136 food and convenience stores in Ontario and Quebec. With 36.3 million people, Canada is only 11.2 percent the size of the United States, which has a population of 323.1 million, yet Canada is characterized by tremendous ethnic diversity. More than 20 percent of Canada’s population is foreign-born compared to 13 percent of the U.S. population. Accounting for roughly 5 percent of people residing in Canada, South Asians make up the largest visible minority group in the country, followed by ethnic Chinese. Consequently, Asian food of all types is an established component of Canadian store brands rather than a new frontier. Canadian Chinese cuisine in particular has long been popular in the country, with even small rural towns frequently boasting a Chinese restaurant. Accordingly, Saskatoon, Saskatchewan-based Federated Co-operatives Ltd., which serves roughly 200 member retail cooperatives in Western Canada, provides an East Asian food private brand, Lucky Dragon, in addition to six other store brands. Urban millennial and other foodies of all cultural backgrounds, however, are driving demand for authentic global cuisine in Canada, whether from Asia, the Middle East, Africa, the Caribbean or Latin America.

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Store Brands /November 2017 / www.storebrands.com

Responding to key trends

Metro’s Gibson and Horodecki-Aymes both relish the challenges and creativity inherent in addressing everevolving consumer preferences and expectations with unique store brand SKUs. 86

Store Brands /November 2017 / www.storebrands.com

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CANADIAN MARKET INSIGHTS “When you look at consumers all over the world, they are looking for the same things,” Gibson observes. “They are looking for transparency, honesty and discovery.” Metro provides transparency and adventure through its tiered private brands, which account for approximately 20 percent of retail sales. The two largest of these are Selections, the national brand equivalent with more than 2,500 SKUs, and Irresistibles, a premium brand with approximately 1,500 SKUs across several food categories. The value-added Irresistibles brand includes several distinct product ranges such as Irresistibles Sans Gluten Free; Irresistibles Life Smart, for consumers who desire nutrient-dense products that have lower sugar, sodium or fat content; Irresistibles Naturalia, a minimally processed free-from line; and Irresistibles Artisan, which offers products “made from the finest ingredients and prepared according to the expertise of [Metro’s] master butchers and bakers,” as the retailer’s website puts it. Much of the fun experienced by Metro’s private brands team comes from developing new products in the Irresistibles lines to complement and expand the assortment of products that are already on Metro’s store shelves. For this brand, Metro can be more daring in sourcing and packaging design, says Horodecki-Aymes, who notes that many SKUs in the Irresistibles brand have won awards. For example, the retailer recently received three Vertex packaging design awards for its Irresistibles vegetable chips, maple syrup, and Christmas cookie and chocolate assortments, while the Irresistibles Dark Chocolate Green Yogurt Cheesecake and the Irresistibles Frozen Bacon & Cheddar Stuffed Burgers are past winners of the Private Label Manufacturers Association’s Salute to Excellence Awards.

Canada remains ahead of the U.S. in private brand’s retail value share in grocery

★ 18.4%

17.5%

Canada 2016

U.S. 2016

Source for Canada: Nielsen MarketTrack. Represents all channels excluding the Internet for 52 weeks ending Jan. 7, 2017. Source for the United States: Nielsen ScanTrack. Represents all channels excluding the Internet for 52 weeks ending Dec. 17, 2016.

“Irresistibles is a brand that caters to customers who entertain and enjoy good pleasures,” despite also including “healthy propositions” across all categories, Gibson points out. She notes that it can be a challenge balancing the Canadian government’s new Nutrition Facts Table requirements that are being adopted over a five-year period (which resemble the U.S. Food & Drug Administration’s Nutrition Facts Label revisions) with the clear trend toward treating oneself to indulgent desserts, drinks, snacks and other dishes. At Metro, the majority of the private brand products are sourced from Canadian suppliers. Because the Canadian dollar is weak compared to the euro and the U.S. dollar, financial considerations are a key reason Metro mostly partners with Canadian private brand vendors, Horodecki-Aymes notes. “But for To celebrate its 70th anniversary this year, Montreal-based Metro has been rolling out a limited-edition range called Collection within its premium Irresistibles brand.

Store Brands /November 2017 / www.storebrands.com

Hemisphere is a new private brand range of exclusive wines at Metro.

some categories such as cheese, certain chocolates and olive oil, other countries do have a strong reputation, so it makes sense to import products,” she explains. In addition, the localism and organic movements are especially prominent in Canada, driven as much by consumer interest in environmental sustainability, animal welfare and local economic prosperity as they are by concern for health and wellness. Leveraging this trend, Metro has been partnering with Voltigeurs Farm on a co-branded line of organic chicken that is part of the Irresistibles Naturalia range. Voltigeurs

Farm, a well-known organic chicken farm in Drummondville, Quebec, is a name that resonates with Canadian consumers, Gibson says.

Purchasing decisions

“Taste continues to be the driving force influencing most Canadians in their selection of grocery purchases,” but price and value are also critical factors, emphasizes the U.S. Department of Agriculture’s Global Agricultural Information Network (GAIN) report “Retail Foods: The Retail Landscape of Canada,” issued in February. “In more affluent households, shoppers are willing to pay a premium on tasty foods, which has given rise to the popularity of a number of gourmet products.” The economic recovery in Canada has been slow, however, exacerbated by the weak Canadian dollar. Unlike in the United States, Canadians have been grappling with higher food prices over the past few years. This climate in which consumers want delicious food at affordable prices has been an enormous boon for Canadian store brands. SB Schierhorn, the managing editor of Store Brands, can be reached at cschierhorn@ensembleiq.com.

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MARKETING OPPORTUNITIES

store brand SKUs begin to bud BUT U.S. FOOD RETAILERS LAG BEHIND THEIR EUROPEAN COUNTERPARTS IN PRIVATE BRANDS By Carolyn Schierhorn

The United States is second only to Germany in the number of new products with vegan claims introduced in 2016. Of all the vegan-labeled products debuting that year globally, the U.S. accounted for 17 percent and Germany 18 percent, according to Mintel’s Global New Products Database. But supermarket chains in Germany as well as in the United Kingdom and France, which rank third and fourth in vegan new product claims, have many more private brand food products specifically labeled “vegan.” Indeed, Germany is even home to Veganz, an all-vegan supermarket chain with four locations, numerous plant-based store brand products and an e-commerce site. France-based Carrefour and the U.K.’s Tesco and Asda are among the European supermarket chains that integrate vegan-labeled products into 92

Store Brands / November 2017 / www.storebrands.com

organic, free-from or vegetarian product ranges. In the United States, it’s mostly specialty food manufacturers that are innovating in the plantbased food space, and these companies are growing rapidly and attracting prominent investors. For example, sales at Miyoko’s Kitchen, a vegan cheesemaking firm based in Fairfax, Calif., have increased 300 percent annually during the past few years. And El Segundo, Calif.-headquartered Beyond Meat Co. — the developer of the frozen pea protein- and beet-based Beyond Burger patty that appears to bleed and sizzle like real beef — counts Tyson Foods and General Mills among its investors and has funding from Bill Gates and the Humane Society of the United States. Two U.S. grocery retailers, however, do stand out for their store brand vegan offerings. Austin, Texas-based Whole Foods Market has a number of

MARKETING OPPORTUNITIES vegan-labeled SKUs in its 365 Everyday Value brand, from Organic Vegan Lasagna to Meatless Meatballs. And Monrovia, Calif.-based Trader Joe’s earns accolades from vegans online, including positive references on the website from People for the Ethical Treatment of Animals (PETA), for its many vegan private brand items such as Trader Joe’s Vegan Kale, Cashew and Basil Pesto; Trader Joe’s Organic Cold Brew Mocha Nut Latte; Trader Ming’s Kung Pao Tempura Cauliflower; Trader Joe’s Vegan Spread and Dressing; and Trader Joe’s Cauliflower Pizza Crust, which happens to be Store Brands’ 2017 Best New Food Product or Line (see page 32). Rochester, N.Y.-based Wegmans is also labeling more of its store brand products as vegetarian or vegan such as canned vegetables and baking ingredients. And Raley’s Supermarkets in West Sacramento, Calif., is proactively identifying many vegan packaged goods as such, both store brand and name-brand SKUs, through shelf-tag icons and in a searchable online database.

Trending lifestyle

In its “Top Trends in Prepared Foods 2017” report issued in June, U.K.-based GlobalData notes that 6 percent of U.S. consumers now claim to be vegan, up from 1 percent in 2014. A more conservative

Percentage of worldwide vegan product introductions in 2016 The United States ranks No. 2 internationally in the number of product launches with vegan claims:

17%

United States 11%

United Kingdom 6%

Taiwan

Canada

South Africa

●

18%

Germany

France

estimate, however, emerged from a 2016 Harris Poll survey by Baltimore-based Vegetarian Resource Group (VRG), which found that only 3.3 percent of U.S. consumers are vegetarian and just half of these individuals are strict vegans. How “vegan” is defined, though, varies considerably, so it is difficult to measure the number of adherents accurately. Some vegans avoid all animal-derived food, including dairy products and honey, but are less strict in their clothing and personal care product choices. Be that as it may, more Americans are seeking out plant-based meals. VRG reports that 36 percent of U.S. consumers eat vegetarian (including vegan) meals at least once a week. Many of the people consuming vegan food products are “flexitarians,” who range from those who eat meat once in a while to those who are just beginning to eat more plant-based products, according to Mintel. Yet among 16- to-24-yearolds (the older members of Generation Z and younger millennials), there is a significant trend toward a veganism because it is perceived as being better for the planet as well as for animal welfare and human health. “Veganism is now seen as a trendy lifestyle,” says Katya Witham, senior food and drink analyst at Mintel. “Today, vegan products attract attention from a much wider audience.” Vegan food and beverage items are gaining traction for several reasons: ● A switch to plant-based agriculture would reduce methane emissions and pollution from livestock waste runoff as well as other environmental degradations, many young vegans contend.

Italy

Spain

Austria

Source: Mintel Global New Products Database

●

Veganism has become more acceptable to mainstream culture; it’s no longer regarded as kooky or eccentric. “The positive portrayal in the media has contributed to its changing image,” says Dominika Piasecka, spokeswoman for The Vegan Society, the U.K.-based international organization that coined the term “vegan” in the 1940s. “Documentaries of the shocking realities and consequences of animal agriculture have gained prominence. Deliciouslooking vegan recipes have multiplied online and on social media. … And top vegan athletes keep proving that you can be fit and healthy on a plantbased diet.” Many adults of all generations are trying to reduce their meat consumption for health reasons, especially given the epidemiological research linking processed meat consumption

www.storebrands.com / November 2017 / Store Brands

MARKETING OPPORTUNITIES

Trader Joe’s, which has many vegan store brand products, including those shown, has been described online as a “vegan’s paradise.”

to disease and earlier death. Because African Americans are more vulnerable to several chronic diseases, including cardiovascular disease and Type 2 diabetes mellitus, a vegan movement has taken root in the black community, championed by “Bad Ass Vegan” and fitness expert John Lewis, tennis star Venus Williams and even Mike Tyson. Documentaries available via Netflix such as “Forks Over Knives” and “What the Health” make a clear case for the health benefits of a vegan diet, notes Claude Tellis, the African American president of Irvine, Calif.headquartered Vegan Smart, which makes highprotein plant-based nutritional shakes. “My family is from Louisiana, and about 80 percent of my family has Type 2 diabetes,” Tellis shares. “In the last three years I’ve had three uncles get legs amputated, and I’ve had one uncle who went in with unchecked diabetes and died on the operating table before they could amputate both of his legs. So where I come from, health is the overriding consideration in adopting a plant-based diet.” Due to innovation in the realm of plant-based proteins such as proprietary protein composites, pulses and algae, it is easier today to obtain the nine essential amino acids needed for a healthful diet from vegan food products. Indeed, the ancient grain quinoa naturally contains all nine amino acids. Moving away from animal-based agriculture doesn’t have to be devastating to livestock producers, dairy farmers and meat and poultry processors, according to the San Franciscoheadquartered Plant Based Foods Association. There have been several instances of U.S. businesses transitioning from animalbased food production to vegan-

friendly non-profits and business establishments. For example, at Rowdy Girl Sanctuary, in Angleton, Texas, former ranchers care for rescued hogs, cattle, chickens and turkeys.

Responding to demand

Although lagging behind European supermarket chains in developing own-brand vegan SKUs, U.S. grocery retailers are starting to take the plantbased food movement more seriously. For instance, several retailers this year began carrying the Beyond Burger, including Cincinnati-based The Kroger Co. and Boise, Idaho-based Albertsons. And Walmart this month joined Whole Foods and other retailers in selling the Vegan Smart mealreplacement shakes. Also ahead of the plant-based food curve, San Antonio, Texas-headquartered H-E-B recently named Skull & Cakebones, an Austin-area vegan bakery, as the $25,000 Grand Award winner of the retailer’s Primo Picks Quest for Texas Best competition. The bakery’s winning entry was its Mocha Marmalade Trifle, “a rich chocolate cake layered with coffee buttercream frosting and topped with chocolate pudding,” according to one description. This product will be featured as one of H-E-B’s Texas-made “Primo Picks” store brand SKUs. Retailers considering a foray into vegan new product development will have to decide whether to focus on distinctive plant-based products or on meat substitutes or both. “There’s a lot of debate about whether vegan products should mimic meat or whether the products should be satisfying on their own,” points out Meredith Ford, client lead at London-based dunnhumby, which provides data science for retailers. Ford suggests that grocery retailers would be wise to develop both private brand meat-substitute products — which are aimed more at new vegans and flexitarians — and vegan dishes that showcase the delicious, unique flavors and textures of vegetables, fruits and grains. SB Schierhorn, the managing editor of Store Brands, can be reached at cschierhorn@ ensembleiq.com.

Store Brands / November 2017 / www.storebrands.com

TRANSPARENCY AND OPPORTUNITY

Private brands could be poised to capitalize on natural sweeteners By Lawrence Aylward

ou can’t sugarcoat it: More Americans are forsaking sugar and artificial sweeteners and demanding natural sweeteners. And that consumer push for food and beverage products with natural sweeteners could grow even stronger, considering a recent report from Belgian scientists who said they have discovered a positive correlation between sugar and cancer. Calling it a “crucial breakthrough in cancer research,” the scientists clarified how the Warburg effect, a phenomenon in which cancer cells rapidly break down sugars, stimulates tumor growth. The researchers contend that sugar “awakens cancer cells.” Regarding artificial sweeteners, which about onethird of Americans use on a daily basis, the Harvard Medical School recently reported that aspartame, sucralose and other artificial sweeteners, which are all added to soda, yogurt and other foods, do not help people lose weight and may have the opposite effect, and even possibly increase the risk of high blood pressure, diabetes and heart disease. According to a recent report from market research organization Nielsen, 22

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percent of Americans are restricting their sugar intake while 52 percent are trying to avoid artificial sweeteners. “We are seeing a shift occurring at a very highlevel in the consumer mindset from sugar to identifying cleaner products,” says Andrew Mandzy, director of strategic health and wellness insights for Nielsen. So what does all of this mean for privatebranded products that contain sugar and artificial sweeteners? While it’s definitely a challenge that involves costly product reformulations, it could also spell opportunity. “If you listen to retailers, [they are] talking about health, wellness and transparency as a strategic growth initiative,” Mandzy says. “And one way they are [growing] is through their private brands.” According to Chicago-based Label Insight, a data science company that captures, sorts and analyzes information gathered from food product packaging, natural sweeteners such as organic cane sugar syrup, organic agave nectar, honey, chocolate and vanilla extracts are just a few examples that can be used to sweeten products and still keep them within a low glycemic range. Products that contain these alternatives are growing across the store, as sales of these sweeteners grew 19 percent in 2016 over 2015 and a whopping 200 percent compared to four years ago, Nielsen states. “There is a huge push for authenticity and clarity in the foods consumers buy, so natural sweeteners are in demand,” says Lisa Hansel, vice president of sales and marketing for Sioux City, Iowa-based Sioux Honey Association. “Sugar continues to be a source of concern for many, but we

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want a sweet taste in our foods, so honey and other natural sweeteners continue to grow. Honey is gaining ground in most private label categories. It is a popular ingredient in ready-to-drink teas, beers, granola bars, cereals [and other products].” Phil Coggins, director of commercial sales for Naples, Fla.-based Pyure Brands, which offers organic, calorie-free, GMO-free and sugar-free sweeteners with no artificial chemicals in bulk to private brand food and beverage manufacturers, says store brands are a popular target for sugar reduction.

“There are countless house brands within retail markets that need to adapt to shifting consumer demands,” he adds, noting that Pyure is working with several private-brand manufacturers that utilize its sweeteners in children’s juice products, mid-calorie beverages, soda and other products. “Often times, it is the private label brands that tend to lead the way in sugar reduction and innovation. Large brands sometimes tend to be reactive, especially when they begin to lose market share to a private label brand or a new and innovative competitor.” Honey was the second most-used sweetener type after white granulated sugar, market research firm Mintel found in an internet survey of 2,000 adults it conducted last year. Also, 75 percent of consumers indicated they believe honey is a healthy product. “Honey is an increasingly popular ingredient in all kinds of private label products as consumers continue to look for natural and nutritious foods, and cleaner ingredient statements are a priority for most manufacturers,” Hansel says. “Many processed foods [manufacturers] are looking for ways to make their products more natural, and honey is an easy way to improve the quality of their products.”

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TRANSPARENCY AND OPPORTUNITY Taste, of course, plays a huge role. Are consumers willing to sacrifice anything to do with taste, even though products may be healthier? “It depends on the category,” Mandzy says. “If you reformulate and the taste profile completely changes, that will have an impact without question on consumers. If you do the reformulation and there isn’t much of a change in the taste profile or none at all, the impact will be less.” Coggins says it has been Pyure’s experience that consumers won’t buy a product if it does not meet their taste expectations, regardless of health claims. “This is why it is so important to offer only the highest-quality natural sweeteners available,” he adds.

Sugar and transparency

The new Nutrition Facts Label could also impact sales of sugar-contained products. Although the Food and Drug Administration has postponed the compliance deadline of the label, it will feature a callout on the amount of added sugars in products to help consumers be more aware of the amount of sugars they are consuming in food and beverage products. According to research from Nielsen and Label

Insight, there are 206 variations of high fructose corn syrup that manufacturers can list on a label, many of which consumers may not associate as an added sugar. Nielsen and Label Insight say that consumers may be surprised at how many products within the fast-moving consumer goods (FMCG) universe contain added sugar. Nielsen research indicates the new label could impact purchase decisions on the following categories: • Snack bars — 94 percent of UPCs contain added sugar and 34 percent of consumers say that low sugar is an important attribute when making purchase decisions on such products. • Shelf-stable juice and drinks — 79 percent of UPCs contain added sugar and 38 percent of consumers say that low sugar is an important attribute when making purchase decisions on such products. • Yogurt — 86 percent of UPCs contain added sugar and 34 percent of consumers say that low sugar is an important attribute when making purchase decisions on such products. • Ready-to-eat cereal — 83 percent of UPCs contain added sugar and 26 percent of consumers

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TRANSPARENCY AND OPPORTUNITY say that low sugar is an important attribute when making purchase decisions on such products. Early adopters of the Nutrition Facts Label have found the updated panel may help win over consumers who want transparency. Label Insight and Nielsen conducted research indicating a correlation between products that bear the new label and sales increases, said Dagan Xavier, Label Insight’s co-founder. In the juice category, for example, products adopting the new label grew 34 percent in sales in the 52 weeks ending Aug. 12, while products that didn’t implement the label declined 4 percent during the same period. Xavier says private brand owners might want to view the label change as an investment that could pay off in added sales in addition to appeasing consumer demands for greater transparency. “Retailers need to consider the most effective [categories] to reformulate and provide a different offering to consumers,” Mandzy says. As Nielsen states in its report, “Sweetening products with added sugars certainly isn’t wrong, but the data shows that consumers care about the glycemic index in products.”

But as Coggins says, “The challenge is giving consumers reduced sugars without chemical sugar substitutes.” While it will cost manufacturers and retailers to reformulate products and create new ones, there is also opportunity for what Coggins calls “perpetual product innovation.” Coggins notes that 18- to 34-year-olds are more conscious than ever about what they eat and drink and have better access to information about what they consume than any time in history. Older consumers are also cognizant of the dangers surrounding added sugars, and are actively seeking alternatives to old standards like soda and sugary teas. “This enables new and emerging brands to quickly gain a foothold within retail markets that are forced to introduce and carry better-for-you products that are increasingly in demand,” Coggins adds. “It has truly become an ‘adapt or die’ situation, and we are seeing this across all applications from dairy to soda to midcalorie products everywhere.” SB Aylward, editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com.

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MARKETING AND MERCHANDISING

Getting

THE COFFEE AND TEA CATEGORY REQUIRES A ‘THOUGHTFUL’ MERCHANDISING STRATEGY, INVOLVING POSITIONING, PROMOTION AND PACKAGING, AMONG OTHER THINGS By Lawrence Aylward

The coffee and tea category is crowded — kind of like a supermarket on a Saturday morning. So what to do to make the category’s store brands stand out? “The coffee and tea category has seen a lot of growth. However, too many choices can be a challenge for both retailers and consumers,” says Susan Matthews, senior marketing manager of beverages for Plattville, Wis.-based Bay Valley Foods, a TreeHouse Foods company that manufactures coffee and tea products for private brands. “If it’s too difficult to shop the category, that is a tell-tale sign. Retailers need to make it easy for their shoppers to find the flavors, varieties and brands they like.” To make store brands stand out, Clay Dockery, division vice president at Massimo Zanetti Beverage USA, says retailers first need to think of the entire category and what they need to do to grow overall sales. “It’s extremely important that retailers have a very thoughtful strategy for the category, first and foremost, and know strategically what they want 102

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to do with private brands,” says Dockery, whose Portsmouth, Va.-based company manufactures and sells coffee roasters, including for private brands. That “thoughtful strategy” involves positioning, promotion and packaging, among other things. Strategy is also tied to clarity, Matthews stresses. “Like national brands, it’s important that retailers develop their overall brand strategy and be clear on their positioning — what they want their store brand to stand for,” she says. “Having that clear positioning and packaging that supports that positioning is important to allowing those store brands to stand out on the shelf.” Lindsay Penberthy and Kara Miencier, both sales executives for Lansing, Mich.-based Paramount Coffee Co., are proponents of making store brands stand out by differentiating them through packaging. “We have found success in having packaging as the stand-out option,” Penberthy adds. Says Miencier: It’s simple — great packaging leads to consumers picking up the product.”

MARKETING AND MERCHANDISING The right message

There are many messages through signage on store shelves and packaging that can be conveyed, from price to quality to value to sustainability. Often, several messages must be channeled. “Consumers are looking for value,” Matthews says. “Signage should convey quality. Store brands today are as good, if not better, than many national brands, and that message needs to carry through to store signage.” Dockery points out that coffee is one of the most heavily promoted categories in center store with both frequency and depth of discount being significant. But too much discounting can lead to less market share for store brands. Penberthy notes that some consumers, including millennials, have made it clear that price isn’t the No. 1 factor in their coffee and tea purchases. “While price is still important, we know that quality is a must to get repeat buys and trust of the brands,” she adds. Dockery stresses the importance of sending the right messages to the right age groups. For instance, millennials are adventurers who want to be “wowed” by unique blends and different origins of coffee, which should be taken up in messaging. Dockery says younger shoppers, who are focused on “doing the right thing,” would also be impressed by certain certifications such as USDA Certified Organic, Fair Trade and Rainforest Alliance designations.

THE COFFEE AND TEA CATEGORY HAS SEEN A LOT OF GROWTH. HOWEVER, TOO MANY CHOICES CAN BE A CHALLENGE FOR BOTH RETAILERS AND CONSUMERS. SUSAN MATTHEWS, SENIOR MARKETING MANAGER-BEVERAGES, BAY VALLEY FOODS

Matthews agrees. “These are great to include on store brands should the retailer’s brand strategy support this higher tier, as certifications come with a higher price tag,” she adds. Interestingly, there is a confluence of two macro events that could impact signage from a certification standpoint, Dockery points out. “You have a government that is trying to significantly reduce regulation while at the same time we are seeing a consumer base that is becoming less and less trusting,” Dockery explains. “I think these [issues] are going to converge into a situation where the retailers and manufacturers that support them will fill the credibility gaps that concern customers.”

Story time

Telling stories near displays or on packaging is another solid merchandising tactic, Penberthy says. “It’s a big challenge, and we are still learning how to do that,” says Penberthy, noting the importance of telling a compelling story quickly. “Consumers get inundated as soon as they walk into a store. So it’s important to be precise and to the point.” 104

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Takeaways 1 Too many choices of too many coffee and tea products can pose problems for retailers and consumers. 2 Retailers need to make it easy for their shoppers to find the flavors, varieties and brands they like. 3 When merchandising coffee and tea products, it’s imperative that retailers know what they want their store brands to stand for. 4 One excellent merchandising tactic is differentiation through packaging. 5 There are many messages through signage on store shelves and packaging that can be conveyed, from price to quality to value to sustainability. 6 It’s vital to send the right messages to the right age groups. 7 Telling stories near displays or on packaging is a solid merchandising tactic. 8 Usage needs to be considered when determining where coffee and tea products should be merchandised.

MARKETING AND MERCHANDISING When telling a story, the most important element is authenticity, Dockery says. “If you’re going to have a particular call-out, it has to be authentic, legitimate and it has to be easily communicated,” he says, noting that coffee packaged in steel cans could be “called out” as being recyclable to address consumers who are concerned about the environmental impact of packaging materials. “Callouts about where coffee is grown and using maps of countries [to show its origin] can help consumers understand where [product] is coming from.” Matthews says coffee has a great story to tell from field to cup. “Retailers should try to leverage photography when possible,” she adds. “Showing photos of the coffee farm, fruit, beans and grounds all help to share that story quickly.” Retailers can sell an entire portfolio of privatebranded coffee blends around a certain cause story, Penberthy adds.

The “where” factor

Retailers need to be clear with their positioning on how they want their store brands to stand out.

Matthews says “usage” needs to be considered when determining where coffee and tea products should be merchandised. “Coffee, which is more often consumed at breakfast, can be merchandised in the bakery section with donuts,” she adds. “The beverage category overall also benefits from seasonal offerings. Creating a seasonal placement across categories also works well at the entrance of the store. Promoting profitable store brands in hightraffic areas is going to benefit the retailer both in profit, as well as creating a great billboard for their store brands.”

Dockery says some retailers merchandise coffee and tea in unconventional places, such as in the bakery or dairy where liquid creamers are sold. “By hitting points before the shopper is on the coffee aisle, you have a better opportunity of winning if you are merchandising your own brand coffee in those unconventional locations,” he adds. But there are also the shoppers who are the heavy coffee and tea users who tend to lean more toward the mainstream space and their purchase cycles are about every three weeks. “So you have the opportunity to gain sales or lose those sales if they are in other channels where coffee is being more aggressively promoted,” he notes. Dockery says Canadian supermarket chain Loblaws has one of the most aggressive coffee merchandising programs he has ever seen. “Generally, Loblaws will have its own brand on display in eight to 10 different locations throughout the grocery store,” he adds. Regarding the rapidly growing ready-to-drink category, Dockery says some retailers are placing coffee drinks adjacent to roasted-ground and wholebean products. Others are placing them near energy drinks and in the dairy case. “With the amount of grab-and-go cases that retailers have in stores that sell single-serve beverages, they would certainly want them to have iced coffees and lattes in there as part of the selection as well as in multipacks at center store,” Dockery says. To Penberthy, you can’t go wrong by using end caps for merchandising. “Day to day, we all know that end caps have a huge advantage because most shoppers are going to cross paths with them,” she says. The ready-to-drink category, with cold brew coffee leading the way, is the coffee category’s fastest-growing segment. But Dockery says retailers need to be careful not to over-merchandise the category and “siphon away” from other segments. “It’s going to be incremental in coffee in total, so don’t take your eye off the roasted ground segment when planning your merchandising,” he advises. Overall, Matthews believes the coffee and tea category offers retailers many options for private brands. “It has been exciting to watch the evolution of store brands,” she says. “Whether it is trying a new flavor or variety or having a more affordable way to enjoy their favorite type of product, retailers and their manufacturing partners have worked together to create a fantastic set of options to traditional brands.” SB Aylward, editor-in-chief of Store Brands, can be reached at laylward@ensembleiq.com.

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PACKAGING

Call to Attention Private brand packaging design continues to evolve with an aim to build consumer trust By D. Gail Fleenor

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any remember the private brands of yore — when generic products sported white labels with black lettering and generally had no link to the store where they were offered. Price was the selling point and price only, but better store brands later emerged that were linked in some way to the stores offering these still price-prominent products. But many of today’s modern store brands offer quality both inside and out. Labels often appear on products in see-through bags, which allow customers to see the quality they are purchasing. Many labels may again be white or

Store Brands / October 2017 / www.storebrands.com

plain, but they are not like the generic products of old. These simple labels are part of a minimalist design movement to convey purity, simplicity and quality. Price is not the only selling point with many store brands today. Not long ago, some store brands displayed labels designed to resemble national brands. More than one customer mistakenly put the private-branded products in their shopping carts only to be surprised at their purchases when emptying their bags at home. This mimicking did not gain consumer trust, although it helped to reinforce a belief that store brands were produced by “the same places as national brands,” whether true or not.

Design for quality

There have been big changes in store brand design and in how customers perceive such products. Private-branded packaging continues to evolve to build trust with consumers as it seeks to display quality. “Store brand design is changing across the board with brands we work with,” says Sheri Koetting, founder and consumer experience strategist with New York-based MSLK, a beauty branding agency. “The brands don’t have to just compete on price now.” While price is still important, customers want to get “great quality at a great price,” Koetting adds. The store brand design often seen today is understated, clean and modern — all meant to convey quality. “Less is more seems to be foremost in design trending of store brands today,” Koetting says. “Design is meant to convey a sense of return to simplicity,” as seen in a wide range of store brand products from soup to soap. “It’s a stripping

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PACKAGING down to detail a sense of quality,” Koetting adds. “The knock-off stigma is being discounted.” All-important millennial shoppers, a group growing by the day, do not want coupons or discounts on private brands, she notes. They just want quality, which can be reflected in a creative but simple approach to store brand packaging. Younger generation customers are also looking for relationships with private brands and want to connect with those who share their values and beliefs. They want to be told, “We understand you. And to meet your needs, we created this product for you,” Koetting says. A move toward simple and effective packaging design is wideranging.

The retailer view

Retailers want quality and customization from their store brand labels and packaging, according to Katelyn Bohr, marketing manager for Colordyne Technologies LLC, a Brookfield, Wis.-based manufacturer of digital inkjet printing systems. “They are continuously looking for ways to elevate their store brands, and one of the most valuable ways to do this is through the packaging,” Bohr says. “Not only is product packaging a differentiator on the shelf, it is also one of the top factors in the purchasing process.” A review of retailers shows that a move toward simple and effective design with packaging is wide-ranging with quick messaging playing a key role. Consider Albert-

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son’s new Signature brand, which was launched last year across more than 2,200 stores. Through the store brand, which consists of six lines including Signature Farms for fresh items, Signature Home for items used around the house and Signature Care for OTC medications and similar products, Albertsons aims to attract consumer trust with its messaging to not only get consumers to buy the products but also to buy them again. For example, Signature Farms includes the motto “Quality You Can Trust” on the label and points out that its ingredients are from natural, not artificial, sources. “The products [in the Signature brand] were made to address consumers’ growing appetite for quality private label products from stores they trust,” according to Albertsons. The Kroger Co. offers its premium store brand, Private Selection, which includes an array of products featuring an upscale design but no Kroger logo. Many customers may purchase these items without knowing they are another Kroger store brand. The gold-tinged logo of many Private Selection items continues the quality over price image. Kroger has many design variations for its other private label products. Some are multi-colored labels with non-mimicking designs while others follow the “white for quality and simplicity” path. Supermarket chain Publix’s private brand displays a white, quality-suggesting label with different colored tops on cans or packages. All feature the Publix logo in a black orb. Amazon is making its presence felt in private brands. The mega-retailer, for example, offers a stand-up mostly clear pouch of cashews branded “Happy Belly” to show the quality being purchased. Another brand Amazon Basics, which covers a wide group of items including batteries, has an ultraplain package. It must be working: Amazon batteries were up 93 percent in sales year-over-year growth. The company’s “Wickedly Prime” brand features minimalist packaging for chips and other snacks. Swimming upstream against the new trend in store brand packaging design is German company Lidl, which debuted in the United States last summer and offers a 90 percent assortment of private brands. In some store brand categories, Lidl takes up the old “fool them or at least copy their quality image if you can” philosophy. In the beer category, Lidl places copycat labels next to Budweiser and Heineken. In cereals, a very similar cinnamon crunch label is seen, mimicking the national brand. There is even an amazingly similar version of Head & Shoulders shampoo on Lidl’s shelf. “This diminishes the store brand’s full potential,” Koetting says. “Every brand has the opportunity to be unique. But it will be a long time before copycats go.” Lidl’s Preferred Selection premium line of products takes a different approach, however, and adheres to a simple and effective design. Many of the products in the line are made in Europe. “The packaging designs honor the authentic style and artwork one would typically find on premium products in that country of origin,” says Will Harwood, director of communications for Lidl.

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PACKAGING Even more trust

Green has become the color synonymous with health and organic products as well as free-from products. Just as name brands are offering GMO-free products, for example, store brands are doing the same and often with green labels. According to Kaleidoscope’s “Top 6 Tips for Private Label: Trends and Consumers” by Account Director Alexandra Goff, GMO awareness has started a private brand trend in which retailers are demanding their suppliers reformulate to eliminate synthetic colors and ingredients. Many have requested and offer specialty lines of dietary-focused products with product packaging designs that convey this healthfulness. Packaging can play an important role in reassuring consumers that the products they know and love are arriving to them safely and securely, according to the March 2017 survey “Packaging Matters Pulse” by WestRock, a paper and packaging company based in Norcross, Ga. “Brands invest heavily in omnichannel marketing strategies, but in the end, the only element of that mix consumers are guaranteed to interact with is the packaging,” according to the company.

A WestRock survey found that 96 percent of consumers are either very or somewhat satisfied with private brands packaging. The majority of consumers surveyed (56 percent) believe private brands are the same quality as national brands, while more than one-third (36 percent) believe they are better. However, consumers do report slightly lower levels of trust for private-branded products. Proper packaging can reassure consumers and strengthen connections to store brands, according to WestRock. Consumers are guaranteed to interact with packaging in order to consume the contents, so packaging is more important than ever in cementing consumer trust. High-quality packaging is often interpreted as a highquality product with consumers, Bohr says. “Retailers want to make sure their store brand packaging is unique and sets them apart from the competition,” she adds. “This means customizing the labels and packaging for each retailer. Customization is often seen as time-consuming and costly. But with today’s technology, such as digital printing, store brands can easily and affordably produce custom shortrun labels and packaging.” SB

Fleenor is a freelance writer from Bristol, Va.

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ADVERTISING

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Wise folks everywhere preach, “waste not, want not.” In-house digital label printing technology makes realizing that philosophy possible for private brand manufacturers. In-house, on-demand digital label production slashes costs, eliminates wasted inventory, allows for quick turnaround and promotes smooth workflow because suppliers can quickly and easily produce short-run quantities for many different store brand SKUs. In this realm, there is no such thing as a costly “too-high” minimum order, or waiting several weeks for new labels while outside converters serve other customers, because the manufacturer is the one doing the job and calling all the shots. “In-house, digital label printing makes the most sense when you are managing a large number of SKUs, retailers you are selling to need different labels, and you need to turn an order in one day,” says Taylor Buckthorpe, director of sales and marketing for Colordyne Technologies, the Brookfield, Wis.-based manufacturer of high-speed, high-resolution label and tag digital color printers serving the brand owner, private label and label converting markets. “Colordyne’s 1600 Series C, a compact entry-level benchtop digital printer with a small footprint that uses environmentally friendly water-based dye inks, has introduced many suppliers to the label printing game,” says Buckthorpe. “The 1600 Series C’s cutting-edge technology uses less energy than laser and other traditional inkjet technologies. It is safer for operators, because its aqueous inks do not emit the nano-particles found in laser printer toners, or the noxious odors emitted by other types of ink,” Buckthorpe adds. Additionally, the 1600 Series C seamlessly joins color graphics, variable data and barcodes into one cohesive label, Buckthorpe notes. Achieving a rapid return on investment, lowering production costs, eliminating waste, saving precious time and

freeing up inventory space is only half the story, though. The artistry in-house digital label printing enables pays invaluable dividends in the marketplace. Once upon a time, changing or even tweaking a label was a lengthy, involved and expensive process. Not anymore. Whether to market a product more effectively or to comply with new government regulations, changing a label’s design becomes a simple matter with digital print. Manufacturers gain the freedom to produce seasonal, limited-edition, customized and personalized labels as they wish, affordably and at a high quality level that makes them look as good, if not better than the national brands. Vibrant, beautiful labels are a critical strategic component for store brand retailers who aspire to upsell their products and differentiate themselves as a destination for shoppers, says Buckthorpe. The right label sells. In the second that consumers spend to choose a product, what provokes them to decide what to buy? It could be a precise hue that catches the consumer’s eye and evokes the emotional reaction that whispers “buy me.” It could be pleasing graphics that draw shoppers in for a closer look. And for the significant number of label readers out there, it could be the words that reassure a buyer that this product is exactly what he or she is looking for. No matter the reason, in-house digital label printing makes it easy and affordable for your store brand to be the choice a consumer makes.

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CATEGORY INTELLIGENCE JAMS, JELLIES & SPREADS

LAY IT ON THICK New varieties, combinations and usages infuse freshness into the spreads category

DO aim to appeal to potential new customers by making packaging and labels on-trend.

Ironically, the category that was once largely confined to peanut butter, grape jelly and strawberry jam has become one of the hippest. Beyond the peanut, consumers are flocking to spreads made from almonds, cashews, walnuts, pecans, macadamia nuts and sunflower seeds, says Gary Baron, co-founder and president of The Nashville Jam Co. in Nashville, Tenn. Taste and variety are attractions for sure, but so are the many health benefits of nut butters, which provide plant proteins, good fats, fiber and numerous essential minerals and vitamins. These spreads also offer a workaround for people with peanut allergies, Baron adds. Peanuts are not nuts, but legumes, and peanut allergies are distinct from tree nut allergies. Sales of store brand nut butters rose across all categories for the 52 weeks ending Aug.13, according to Chicago-based research firm IRI. Total private brand nut butter sales reached $404.1 million for the period, an increase of 3.1 percent over the previous year. Unit sales of 137.6 million were up 5.1 percent. Private brand’s dollar share of the total category is 17.6 percent. In peanut butter, store brand sales of $346.6 million were up a half percentage point

DON’T be afraid to ‘amp up’ products with new flavors to intrigue interest.

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from the year before, while unit sales of 127.6 million represented a 3.9 percent increase. Private brand peanut butters capture 18.8 percent of the category’s sales. In specialty nut butters, store brand sales of $57.5 million were up 22.6 percent, while unit sales of 9.9 million rose 23.6 percent. Almost 13 percent of specialty nut butter sales are of store brands.

Multiplicity

The jelly and jam category is marked by an everincreasing array of new fruit flavors, unique flavor combinations and savory varieties, notes Mary O’Donnell, CEO and owner of Terrapin Ridge Farms in Clearwater, Fla. Whether sweet, spicy and/or savory, popular flavorings for jellies and jams include hot peppers like jalapeno and habanero, tropical fruits like mangos and passion fruit, figs, peaches, bacon, tomatoes, herbs and spirits such as brandy and bourbon, Baron and O’Donnell report. Combination flavors “amp up” the product, intriguing interest and sparking consumers’ desire to experiment with new tastes, Baron says. O’Donnell agrees, saying innovative jams and jellies can attract new customers (especially millennials) looking for something special, drive traffic into retail stores and can foster loyalty to a store’s brand. “Some of our retailers are stepping up their private labels by creating unique flavor combinations in high-quality products that are bringing people into their stores,” she says. “They are making their store brands more special, and they’re attracting new customers and keeping them.” In terms of the products, O’Donnell advises clean labels, high-quality, better-for-you ingredients and flavor-preserving processing methods that result in fresh-tasting products “that don’t taste mass-produced.” Appeal to potential new customers by making packaging and labels on-trend, O’Donnell says. Packaging should emphasize “that the product is different, new and fresh — not the same old sameold,” she adds. Labels should reflect a personality, and tell a compelling story, O’Donnell says. Consumers “want to know as much as they can about what they are buying. They want to know

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CATEGORY INTELLIGENCE JAMS, JELLIES & SPREADS Total Nut Butter Private Brands

All Brands

Dollar Sales (in millions)

$404.1

$2,295.4

Change vs. Year Ago

+3.1%

-0.5%

Dollar Share

17.6%

100%

Unit Sales (in millions)

137.6

615.8

Change vs. Year Ago

+5.1%

-1.0%

Avg. Price Per Unit

$2.94

$3.73

Private Brands

All Brands

Dollar Sales (in millions)

$346.6

$1,846.1

Change vs. Year Ago

+0.5%

-0.9%

Dollar Share

18.8%

100%

Unit Sales (in millions)

127.6

529.2

Change vs. Year Ago

+3.9%

-1.4%

Avg. Price Per Unit

$2.72

$3.49

Peanut Butter

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where the ingredients come from. They want to know it’s clean.” O’Donnell also advises stocking non-GMO and gluten-free products and announcing that they are such on the labels.

In the kitchen

Special spreads can make special PB&J sandwiches, Baron observes, especially with higher-quality, nutritious breads. Jams and jellies, however, are also finding their way into more dishes, including charcueterie trays, as spreads on cheese for snacks and in recipes. Cheese boards and charcuterie platters (various combinations of cured meats, pâtés, olives, pickled vegetables and fruits, cheeses, breads, crackers and/or preserves) “are all the rage now,” O’Donnell says. Baron says chefs are starting to play with the PB&J concept. He’ has

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CATEGORY INTELLIGENCE JAMS, JELLIES & SPREADS

Specialty Nut Butter Private Brands

All Brands

Dollar Sales (in millions)

$57.5

$449.3

Change vs. Year Ago

+22.6%

+1.1%

Dollar Share

12.8%

100%

Unit Sales (in millions)

9.9

86.6

Change vs. Year Ago

+23.6%

+1.8%

Avg. Price Per Unit

$5.79

$5.19

Source: InfoScan Reviews, IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending Aug. 13, 2017.

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observed restaurants experimenting with peanut butter and jelly hamburgers, chicken dishes with savory tomato jam and peanut butter and some desserts such as moon-type pies with both ingredients added in. Jams and jellies carry so much potential for use in various dishes, O’Donnell says. The flavors “are all there — it’s simple to smear it all over a roast,” for example, she adds. Both companies offer recipes that incorporate their products. The Nashville Jam Co.’s include vinaigrette, stuffed olives, glazed salmon, baked brie, a marinade for chicken and phyllo puffs. Terrapin Ridge Farms offers recipes for grilled cheese and grilled turkey sandwiches, shrimp skewers, glazes for pork and meatloaf, tacos and pizza. SB Cvetan is a freelance writer based in Barrington, Ill.

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CATEGORY INTELLIGENCE WINE AND BEER

IT’S A CORKER Store brand wine sales surge as retailers roll out new private brand lines

DO consider adding sparkling wine to your private brand wine portfolio.

The proof is in the numbers — wine is a category teeming with potential for private brands. With retail sales of $9.3 million, store brand wine surged 247.2 percent in dollar sales and 252.1 percent in unit sales in the 52 weeks ending Aug. 13, according to Chicagobased market research firm IRI. Just 0.1 percent of the category total of $10.4 billion, private brand wine has barely scratched the surface of its market-grabbing capabilities. A much bigger category with total sales of $37 billion, beer has experienced flat unit sales and only slight dollar sales gains overall, per New York-based market researcher Nielsen. While store brands in this category are not top-gainers across all food retailing channels, beer in 2016 was the leading dollar-growth category for private brands among mass merchandisers, reports the Private Label Manufacturers Association’s 2017 Private Label Yearbook, which cites Nielsen data. Known to be convivial foodies, millennials drink a lot of wine — 42 percent of total consumption per the Wine Market Council — and they talk about the wines they’ve imbibed on social media. A

DON’T fail to use creativity when developing new blends and brews.

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number of research studies have also indicated that millennials are less loyal to name brands. Consequently, several major retailers have decided the time is ripe to target this demographic group with unique, quality own-brand wines. Last month, Irving, Texas-based 7-Eleven Inc. launched a new white wine line that currently includes two SKUs: Trojan Horse Pino Grigio, characterized by citrus and green apple aromas; and Trojan Horse Chardonnay, which blends the aromas of ripe pear and stone fruit with notes of vanilla. These are the first 7-Eleven wines to carry vintage dating and California appellations, designating that all of the grapes were grown in California and harvested in the same year. Despite the careful consideration that went into creating them, the wines are priced at less than $7 a bottle. As Tim Cogil, 7-Eleven’s director of private brands, explains in a press announcement: “To create the flavor profile we wanted, the Trojan Horse wines were custom-developed with grapes from different California valleys. … As with all our private brand products, our goal is to exceed quality expectations when compared to national brands while offering a great value.” Similarly, Minneapolisbased Target introduced in September its California Roots line of $5 wines, which includes five varieties: Cabernet Sauvignon, Red Blend, Moscato, Chardonnay and Pino Grigio. More significantly, German retailer Lidl, which opened its first U.S. stores this past summer, aims to become a wine destination with its 120 listed private brand bottles. The chain even hired a master of wine, Adam Lapierre, to be its U.S. wine buyer. “There are only about 350 masters of wine in the world,” points out Will Harwood, public relations and

CATEGORY INTELLIGENCE WINE AND BEER communications manager for Lidl’s Arlington, Va.-based U.S. operations. “Every bottle that makes it to the shelf has to go through Adam.” Already receiving numerous awards for its U.S. wines, Lidl ranked No. 1 among all retail exhibitors at the Los Angeles International Wine Competition in June, winning 101 medals, including 16 gold medals and five best-in-class medals. Awarded a best-in-class medal, Lidl’s Sweet Red Wine costs only $2.89 a bottle. Because 90 percent of its products are private brands and the retailer has so many stores worldwide, Lidl is able to leverage its “incredible buying power” to keep prices low, Hardwood explains. Issaquah, Wash.-headquartered Costco Wholesale, in turn, has experienced great success with its award-winning Kirkland Signature wines, which are highly esteemed by consumers.

Wine Private Brands

All Brands

Dollar Sales (in millions)

$9.3

$10,429.5

Change vs. Year Ago

+247.2%

+4.0%

Dollar Share

0.1%

100%

Unit Sales (in millions)

1.1

1,108.7

Change vs. Year Ago

+252.1%

+2.1

Avg. Price Per Unit

$8.42

$9.41

Lidl aims to become a wine destination with its 120 listed bottles.

Sales of both wine and spirits have increased 46 percent over the past five years, Costco’s chief financial officer, Richard Gilanti, reported in June.

Effervescent segments

In the wine category overall, consumption of sparkling wine increased 6.6 percent in unit volume from 2015 to 2016, according to the Beverage Information Group’s “2017 Wine Handbook.” This is a high-growth segment for store brands, notes Cynthia Faust, business development manager for Healdsburg, Calif.-based Rack & Riddle’s Custom Wine Services. “The category of sparkling wine is getting very popular,” Faust says. “We’re finding that the younger generations really enjoy bubbles in their alcoholic drinks.” Rack & Riddle makes all of its sparkling wines in the traditional French method (Method Champenoise) using the French varietals Pinot Noir, Pinot Meunier and Chardonnay, Faust explains. “They are aged in the bottle, so they go through two fermentations,” she elaborates. “They go through a fermentation in a tank. And then we bottle it, and it goes through fermentation in the bottle. That’s the old French way.” In California especially, sparkling wine has become an everyday drink like table wine, Faust adds. “It’s super foodfriendly,” she emphasizes. “You can drink it with practically any genre of food. It also has a really nice mouth-feel. And the creamy delicious bubbles are very refreshing.” A heady segment in the beer realm, particularly with millennials, craft and artisan brews such as Portland, Ore.based Zupan’s Markets’ private brand Whiskey Barrel Aged Imperial Stout, which debuted last November, are adding zest to store brand brewery selections. Whether drinking beer or wine, millennials are game to try new lines and flavors rather than sticking with old favorites. SB Schierhorn, the managing editor of Store Brands, can be reached at cschierhorn@ ensembleiq.com.

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Store Brands /November 2017 / www.storebrands.com

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CATEGORY INTELLIGENCE FROZEN MEALS AND ENTRÉES

BEYOND THE TV DINNER Clean labels, international and regional flavors, special dietary preferences drive traffic in frozen meals and entrées

DO Promote prepared meals for snacking, which could further boost sales.

Somewhere in a natural history museum there might be a diorama displaying a family dining on Salisbury steak with brown gravy, buttered corn kernels, applesauce and brownies. The components of each meal are tucked neatly into sectioned, tinfoil plates. Perhaps a television is even on in the background. The convenience of a prepared meal for home consumption was enough by itself to satisfy once upon a time, but frozen meals and entrées have evolved to meet the needs of a public that wants more — much more. A 3 percent upswing in 2016 prepared meals sales compared to 2014’s low point reversed three years of decline, according to global market research firm Mintel. Sales hit $10.5 billion on the strength of single-serve and multi-serve frozen meals which make up 71 percent of category sales, according to Mintel’s May report, “Prepared Meals U.S.” More than 80 percent of adults purchased prepared meals or side dishes in a six-month period, according to a Lightspeed/Mintel online survey of 2,000 consumers conducted for the report. More than half said they purchased prepared meals for convenience and timesaving reasons, but added that taste and health attributes such as high-protein, low-sodium and low-fat content as well as lowcalorie counts also played an important role in their purchase decisions.

DON’T Ignore consumers’ requests for cleaner labels and more natural ingredients. 126

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Product development

Developing new cuisines and varieties, improving taste and promoting the products for snacking could further boost sales of prepared meals, Mintel advises. New-product activity in the category is strong, reports market research firm Packaged Facts. Marketers are developing meatless, vegan, gluten-free and allergen-free dishes in order to cater to special dietary needs and preferences, and are creating products featuring bold and interesting regional and international flavors to entice consumers craving unique taste experiences, according to Packaged Facts’ September report, “Frozen Foods in the U.S.” Clean-label approaches to product development and ingredient selection that employ ingredients consumers trust with no artificial flavors, artificial colors or preservatives in simplified recipes with only a few ingredients are also wielding a lot of influence in the category, according to Packaged Facts. “Retailers are asking for cleaner labels and are leaning toward more natural ingredients,” confirms Jeff Gehres, senior director of sales and product development for Request Foods Inc. in Holland, Mich. Product formulations influenced by ethnic cuisines that emphasize high bean, grain and vegetable content not only cater to adventurous palates, but also boast impressive nutritional profiles, reports Packaged Facts. “Quality and healthfulness are of paramount importance, reflecting the recent reformulating and repositioning of leading brands and the growing presence of emerging brands that emphasize these qualities,” the Packaged Facts report states. Nearly 80 percent of consumers say the quality of packaged frozen foods is the most important factor to them, Packaged Facts reports. Grocery store brands account for about 4 percent of frozen foods sales, up a percentage point from 2014, Packaged Facts found. One reason for the growth, the report concludes, is the increasing quality of store brand products, the growing regard consumers have for store brands, and the lower price points compared to branded equivalents.

Growth opportunities

Gehres sees growth in single-serve meals and skillet bags. Convenience is the driving force propelling both these subcategories but is expressed differently, he adds.

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CATEGORY INTELLIGENCE FROZEN MEALS AND ENTRÉES Total Frozen Dinners/Entrées Private Brands

All Brands

Dollar Sales (in millions)

$311.6

$8,745.8

Change vs. Year Ago

+26.3%

+1.2%

Dollar Share

3.6%

100%

Unit Sales (in millions)

81.3

2,827.3

Change vs. Year Ago

+12.0%

-1.4%

Avg. Price Per Unit

$3.83

$3.09

Frozen Handheld Entrées (Non-Breakfast) Dollar Sales (in millions) Change vs. Year Ago Dollar Share Unit Sales (in millions) Change vs. Year Ago Avg. Price Per Unit

Private Brands $109.0 +33.0% 4.4% 36.3 +5.6% $3.00

All Brands $2,466.9 +0.8% 100% 705.9 -0.1% $3.49

“The attraction of the skillet bag meals is that it makes the consumer feel like they are making the product from scratch, and it actually offers a cooking experience,” Gehres explains. Snack-sized portions and on-the-go packaging in the category could prove attractive to millennial consumers, Mintel notes. “Category purchasers aged 18 to 34 are more likely than those (over) 35 to express interest in seeing more of a variety of other concepts,” the report says. Younger adults, who tend to care about wholesome snacking, are also more interested in organic ingredients and vegetarian meals, the report states. The demographic group more likely than any other to purchase frozen entrées and frozen snacks are households with children aged 12 to 17, Packaged Facts found. In order to take full advantage of the category’s convenience factor, market researchers advise urging consumers to stock up on frozen entrées and meals.

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“A” Rated 128

Store Brands /November 2017 / www.storebrands.com

CATEGORY INTELLIGENCE FROZEN MEALS AND ENTRÉES Frequent purchasers tend to keep frozen entrées and meals on hand even if they don’t plan to use them soon, Packaged Facts says. Encourage consumers to stock up with purchase promotions, Mintel advises. A Lightspeed/Mintel survey of 1,662 adult internet users found that 44 percent of people who reported increasing their purchases of prepared meals say they keep their freezers stocked with such meals. Among those who say they usually purchase different types of prepared meals, 42 percent reported they are buying more.

Multi-Serve Frozen Dinners/Entrées Private Brands

All Brands

Dollar Sales (in millions)

$127.9

$2,021.2

Change vs. Year Ago

+19.8%

+2.6%

Dollar Share

6.3%

100%

Unit Sales (in millions)

14.7

303.2

Change vs. Year Ago

+12.6%

+0.4%

Avg. Price Per Unit

$8.71

$6.67

When asked why they buy frozen or refrigerated meals or side dishes: • 59 percent said because they were quick to prepare, • 55 percent because they were useful to have on hand when the respondents didn’t feel like cooking, • 37 percent said they liked the taste, • 28 percent said they wanted an easy snack, • 26 percent said they liked the wide variety of cuisine options available, • 21 percent said they were purchased for another household member, • 20 percent cited the cost-savings compared to making a meal from scratch, • 19 percent wanted to try new cuisine types, • and 14 percent reported they were trying to lose weight. SB Cvetan is a freelance writer from Barrington, Ill.

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CATEGORY INTELLIGENCE CHEESE AND DAIRY PRODUCTS

CHEESE, PLEASE Natural, specialty varieties continue to capture the public’s affection

Natural cheese continues to grow in popularity, and is the reason the cheese category has performed so well for the past five years, according to global market research firm Mintel. Boosting sales is the widely held belief that cheese is a healthy food, Mintel reports. Between 2011 and 2016, sales of cheese rose 12 percent, to ring up slightly more than $22 billion, according to Mintel’s October 2016 report, “Cheese U.S.” Nearly nine of 10 consumers Mintel surveyed reported eating natural cheese in the past three months and eight of 10 reported eating processed cheese, according to the report.

Specialty gains DO offer robustly flavored, artisanal, gourmet and ethnic specialty cheeses with interesting textures.

Specialty cheese production rose 7 percent in Wisconsin for 2016 and accounted for 24 percent of the state’s total cheese production, according to the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service. Wisconsin produces 27 percent of the nation’s cheese, according to the USDA. The Wisconsin Specialty Cheese Institute defines specialty cheese as a value-added product that commands a premium price for at least one of the following reasons: exotic origin, particular processing or design, limited supply, unusual application or use, extraordinary packaging or channel of sale. The most popular specialty cheeses, according to the institute, are blue, feta, Havarti, Hispanic types, specialty mozzarella and parmesan wheel. Hispanic cheese

DON’T forget to promote that natural cheese is a good source of calcium, protein and other nutrients. 132

Store Brands /November 2017 / www.storebrands.com

production in 2016 rose 11 percent over the previous year. Romano Wheel and specialty Cheddar production were both 10 percent higher. There is a growing market for Hispanic cheese, agrees Arturo Nava, marketing director for Rosemont, Ill.-based Nuestro Queso, which produces specialty Mexican, Caribbean and Central American cheeses and dairy products from authentic traditional recipes and rBST (Bovine somatotropin)-free milk. “It’s an exciting space to be in. The world is turning (especially) to Mexican foods, and cheese is a critical part of Mexican [cuisine],” Nava says. Fifty-one percent of respondents to an online Lightspeed/Mintel survey of 1,852 adults who eat natural cheese said they used cheese as part of a recipe. Hispanic cheeses are a major driver in the growth of the cheese market, according to Packaged Facts’s report, “Cheese: Natural and Specialty Cheese in the U.S. and Global Markets, 6th Edition,” authored by Tom Pastre and published April 2016. Italian cheeses, led by mozzarella, continue to be the most popular type, owing to the popularity of pizza and other Italian dishes, according to Packaged Facts. Pastre points to two factors boosting the market’s growth: the public’s love of cheese, and the wider availability of high-quality cheeses at reasonable prices.

Health concerns

Younger shoppers are more likely to choose organic cheeses and pay attention to protein content, Mintel says. Meanwhile, consumers in general are learning that natural cheese is a good source of calcium, protein and other nutrients, Packaged Facts reports. Though they consider cheese a nutritious food, consumers do express concern over the fat and sodium content, according to Packaged Facts. Marketers have been responding, Pastre reports, by producing more reduced-salt and reduced-fat varieties; organic cheese; and cheese made from healthier milk, whether that means organic, from grass-fed cows or free of artificial growth hormones. Organic cheeses and thin-sliced cheeses designed for portion control will continue to outperform the market, Pastre forecasts.

Snack appeal

Taste, ease of use and a nutritious profile make cheese one of the most popular snacks, according to

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CATEGORY INTELLIGENCE CHEESE AND DAIRY PRODUCTS Total Natural Cheese Private Brands

All Brands

Dollar Sales (in millions)

$5,606.3

$13,169.0

Change vs. Year Ago

+1.5%

-0.1%

Dollar Share

42.6%

100%

Unit Sales (in millions)

1,805.3

3,866.0

Change vs. Year Ago

+3.7%

+1.0%

Avg. Price Per Unit

$3.11

$3.41

Natural Shredded Cheese

134

Private Brands

All Brands

Dollar Sales (in millions)

$2,797.0

$4,719.4

Change vs. Year Ago

+1.4%

+0.6%

Dollar Share

59.3%

100%

Unit Sales (in millions)

885.5

1,529.5

Change vs. Year Ago

+3.5%

+2.7%

Avg. Price Per Unit

$3.16

$3.09

Store Brands /November 2017 / www.storebrands.com

Mintel, which found that 47 percent of respondents to its survey eat cheese as a snack by itself, while 46 do so with crackers or bread and 20 percent snack on cheese paired with nuts or fruit. Nevertheless, adults aged 18 to 34 are less likely to report snacking on cheese, even though their demographic is significantly more likely than older adults to snack several times daily, according to Mintel. This situation offers marketers an opportunity to promote cheese to millennials as an easy, nutritious snack, Mintel adds. Given the number of consumers who eat on the go and skip traditional meals, as well as the number of parents who favor cheese as a snack for their children, the outlook is bright for convenient snacking forms such as string/stick cheese and bitesized chunks, Packaged Facts states. â&#x20AC;&#x153;Todayâ&#x20AC;&#x2122;s busy consumers demand convenience and manufacturers

continue to offer products and packaging that are easy to use and store and are portable. Cheese manufacturers are capitalizing on the snacking and on-the-go eating trends with a slew of new products in special cuts, sizes and packs,” Pastre writes in the report. Mintel agrees that cheese marketers should concentrate on developing convenient forms and packaging that make snacking easier.

Exploring flavors

Thirty-nine percent of adults aged 18 to 34 surveyed by Mintel said they like to sample natural cheese before making a purchase decision. Thirty-four percent of this group also said they craved more information about natural cheese flavors and food pairings. Consumers are being drawn to robustly flavored, artisanal, gourmet and ethnic specialty cheeses with interesting textures, according to Packaged Facts.

Mintel’s survey found that 37 percent of adults aged 18 to 34, 29 percent aged 35 to 54, and 19 percent of those 55 years and older like natural cheese with bold flavors. When asked if they thought it was worth paying more for better quality natural cheese, 37 percent of those 18 to 34, 30 percent of those 35 to 54 and 21 percent of those 55 and older replied in the affirmative. SB Cvetan is a freelance writer based in Barrington, Ill.

Natural Chunks Private Brands

All Brands

Dollar Sales (in millions)

$1,171.3

$3,595.9

Change vs. Year Ago

-3.1%

-2.2

Unit Sales (in millions)

343.5

925.0

Change vs. Year Ago

+0.3%

-1.8%

Avg. Price Per Unit

$3.41

$3.89

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135

CATEGORY INTELLIGENCE SNACKS

A SNACK ATTACK Private brand retailers are in position to capitalize on category expansion to all areas of stores

DO offer snack foods that appeal to children as 45 percent of households with kids under age 12 snack in the early morning.

The snacking sector is becoming increasingly ubiquitous. As more consumers evolve from eating three main meals to consuming smaller portions throughout the day, a wide array of food segments are in position to generate accelerating activity. Dollar sales of snack foods are forecast to increase $35 billion from 2016 to 2021, reports IRI, a Chicago-based market research firm. Millennials and baby boomers, meanwhile, are leading the expansion, with products intended for children and health-conscious shoppers predicted to become major revenue generators. “The importance of snacking in America is undeniable and it is creating more and more opportunities for companies and brands as snacking frequency increases, particularly among younger consumers,” notes Beth Bloom, associate director of U.S. food and drink reports for Mintel, a global market research firm, in the May Snacking Motivations and Attitudes-US report. “While health is a factor for consideration in food

and drink decisions, the majority of snackers do so for a treat, meaning even health-focused snacks should appeal with messages about enjoyment and indulgence.” Mintel reports that 32 percent of consumers say most of snacks they eat are healthy, and 28 percent note they are snacking on healthier foods this year versus last year. Suppliers, meanwhile, are developing more snacks with healthful features. Selections with low, no, or reduced allergen claims, for instance, constitute about 46 percent of the new snack product launches in 2017, a 30 percent increase over 2013, Mintel states. Other common health-related claims are USDAcertified organic, gluten-free, dairy-free, cholesterolfree and free of artificial colors or flavors, noted Sally Lyons Wyatt, IRI executive vice president and practice leader for client insights, in a 2016 IRI webinar on the state of the snack food industry. The majority of consumers also are seeking snacks with health benefits beyond nutrition, including items containing antioxidants, vitamins and minerals, she said Yet, with a cross-section of shoppers consuming a wide variety of snacks, “the sky is the limit” for potential revenue growth, says Diana Sheehan, director of retail insights for Kantar Retail, a Boston-based research and consulting firm. “Snacks no longer just mean chips, cookies, crackers and granola bars,” she states. “Snack means anything that is available in a moderate serving size that fills a need and makes sense in my diet.”

An antidote to dining out

DON’T forget to offer snacks with antioxidants, vitamins and minerals. 136

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The greater interest by consumers in having multiple snacks throughout the day in lieu of just breakfast, lunch and dinner, meanwhile, is making snack foods an important lure for retailers in attracting shoppers who might otherwise go to foodservice locations for quick eating, Sheehan notes. “Retailers should know that consumers tend to eat adventurously at restaurants and then look to replicate their dining experiences at home,” says Mark Singleton, vice president of sales and marketing for Rudolph Foods Co., a Lima, Ohio-

CATEGORY INTELLIGENCE SNACKS

Breakfast/Cereal/Snack Bars Private Brands

All Brands

Dollar Sales (in millions)

$101.3

$1,079.4

Change vs. Year Ago

+7.2%

-0.1%

Dollar Share

9.4%

100%

Unit Sales (in millions)

45.9

399.0

Change vs. Year Ago

+4.1%

-0.3

Avg. Price Per Unit

$2.21

$2.70

Private Brands

All Brands

Dollar Sales (in millions)

$55.3

$1,517.2

Change vs. Year Ago

+17.3%

+7.4%

Dollar Share

3.6%

100%

Unit Sales (in millions)

29.5

716.6

Change vs. Year Ago

+20.2%

+4.4

Avg. Price Per Unit

$1.87

$2.12

Cheese Snacks

Ready-to-Eat Popcorn/Caramel Corn Private Brands

All Brands

Dollar Sales (in millions)

$70.5

$1,073.9

Change vs. Year Ago

+26.9%

+8.6%

Dollar Share

6.6%

100%

Unit Sales (in millions)

34.3

393.8

Change vs. Year Ago

+22.5%

+8.4%

Avg. Price Per Unit

$2.06

$2.73

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based snack food supplier. “For grocery store leaders, the snack food aisle can provide more freedom to introduce new and buzz-worthy flavors and functional foods.” Along with the growing popularity of snacks is an increase in snacking frequency. The proportion of Americans who say they snack two to three times per days grew to 55 percent in 2017 from 50 percent in 2015, Mintel notes. Those who claim to snack only once per day fell from 29 percent to 24 percent during that period. Millennials (which Mintel lists as persons between the ages of 23 and 40) are among the most active daily snackers, with 25 percent most likely to snack four or more times per day, versus just 10 percent of Generation X consumers (ages 41 to 52) and 9 percent of baby boomers (ages 53 to 71). It also is important for retailers to offer snack foods that appeal to children as 45 percent of households with kids under age 12 snack in the early morning, IRI reports. “Morning assortments are growing, but there is a risk of the sector become saturated,” Lyons Wyatt said, noting that merchandisers need to ensure that newer products “have benefits beyond what is in the market today.”

Shine the spotlight

To effectively highlight private brands, retailers can situate items on endcaps

Custom blends Custom base products Extruded • Mixes Cooked corn Masa flour • Inclusions

CATEGORY INTELLIGENCE SNACKS or floor displays along with signage that lists attributes, such as being a healthy snack with limited calories, Sheehan says, adding that messaging on packages also can call out items that can function as snacks. Developing the optimal merchandising strategies and products typically require close collaboration by retailers and their suppliers, she states. “The parties need to be proactive in establishing assortments rather than just duplicating what is already available in stores,” she notes. “With many shoppers embracing private label, store brands should stand above the national brands.” Indeed, Singleton states that working with a strong supplier is key to developing a premium private label program and developing high-quality selections. “A superior partner should be able to share all of its expertise in developing products and communicating the attributes with its private label retail partners,” he says. Among the varieties that can enable store brands to stand out are bolder and spicier selections, as well as products from smaller, local and craftstyle suppliers, says Barbara Moreno, director of

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marketing for Snak King, a City of Industry, Calif.based supplier of private label and branded snack foods. She notes that along with launching innovative items, retailers can distinguish their store brands by offering lower-priced products; merchandising the snacks in a multitude of departments; leveraging unique packaging designs and having prominent shelf placements. “Private label retailers should also introduce on-trend, innovative items with strong consumer health claims,” Moreno states, adding that healthy items along with bold and ethnic flavors and valueoriented options will remain popular over the next few years. “All products won’t appeal to everyone, so merchandisers are going to have to decide on the consumer groups they want to target,” Lyons Wyatt noted. “But global fare and bold combinations will continue to resonate and retailers must ensure that they have products that appeal to kids, including healthy foods and permissible indulgences.” SB Mitchell is freelance writer from Wilmette, Ill.

CATEGORY INTELLIGENCE OTC MEDICATIONS

A REVENUE REMEDY Retailers that emphasize the lower price and high quality of store brands are in position to boost over-the-counter activity

DO place store brand and name-brand OTC medications side by side on shelves as price is the primary differentiator in this category.

The over-the-counter (OTC) pharmaceutical sector is ripe for a store brand surge. Unlike most other retail categories, it is virtually impossible for merchandisers to differentiate products by altering ingredients. That makes the typical lower price of private brands a powerful selling tool. Store brands already account for 40 percent to 60 percent of sales in most OTC segments and private brand market share is likely to further increase as more consumers comprehend the value proposition, states Jim Wisner, president of Wisner Marketing Group Inc., a Libertyville, Ill.-based consulting firm that has done extensive research on the OTC sector. Because the U.S. Food & Drug Administration (FDA) requires that private brands have the same ingredients as comparable national options, a steady switch to store brands seems inevitable, he notes. “The typical private label OTC product can cost the retailer half the price of a national brand, so the margin opportunity is dramatically greater and the savings that they can pass on to consumers is dramatically greater than probably any other category in the store,” Wisner notes. Yet, despite the popularity of store brands, it still is critical that retailers consistently promote their selec-

DON’T neglect to recognize opportunities for innovation in packaging such as easier-to-open pill bottle caps.

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tions if they are to attract new buyers and maximize the revenue potential, he says. Effective merchandising vehicles include in-store “compare and save” signage that illustrates the cost savings from purchasing private brand items, as well as naming the comparable national brand on the private brand label, he states. To easily enable comparisons, similar store and national brand selections should be side by side on shelves, Wisner adds. He notes that pharmacists also can be instrumental influencers by recommending specific options to customers and by situating store brands on endcaps and shelves near the pharmacy, which can enable pharmacists to easily direct shoppers to the products.

Push the packages

Packaging that contains unique elements, graphics and messaging is another way to distinguish store brands, Wisner states. Labels can describe product functions, such as the ability to relieve pain, watery eyes and runny noses; spotlight caps that are childproof or easy for seniors to open; and specify the specific product flavor, color or shape. “Retailers are demanding more impactful packaging regardless of the format, and that ranges from plastic bottles to foil pouches,” says Mark Bolling, vice president of marketing and business development for Puracap Pharmaceutical, a Piscataway, N.J.-based OTC supplier. “Packages can include different color tones, novel graphics and embossing to present an upgraded look.” The typical small- and medium-size lettering on private brand containers, meanwhile, already provides store brands with a competitive edge, he says. Because many national brands use a large portion of package space to spotlight the brand name, private brands have more area in which to extol product attributes. “Store brands packaging has often been generic and mundane,” Bolling says. “Most bottles have traditionally been plain white, but now there is greater use of clear bottles to enable shoppers to see products and innovative caps that make it easier for elderly consumers or persons with arthritis to twist the tops.” To create the most potent merchandising strategies, retailers should meet with their suppliers several times a year and determine how to best leverage such tools as newspaper fliers and coupons, and discuss appropriate pricing and seasonal promotions, Bolling states.

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CATEGORY INTELLIGENCE OTC MEDICATIONS In addition, suppliers can share data on the factors that motivate consumers to buy specific products and educate retailers on market trends, Wisner adds. Such trends include the greater demand for single dose packages, which “are convenient and portable,” Bolling says, adding that “people going to work don’t want to be carrying containers with 30 or 60 capsules.” In addition, an aging population is increasingly seeking products for

Cold/Allergy/Sinus Liquid/Powder Private Brands

All Brands

Dollar Sales (in millions)

$386.3

$1,278.5

Change vs. Year Ago

+7.4%

+5.5%

Dollar Share

30.2%

100%

Unit Sales (in millions)

60.0

152.8

Change vs. Year Ago

+2.8%

+1.4%

Avg. Price Per Unit

$6.43

$8.37

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gastrointestinal issues, as well as allergy medications, sleep aids and pain relief remedies, he states. Indeed, with the large base of baby boomers in their 50s, 60s and 70s, the OTC sector will be increasingly active, Wisner notes, adding that half of all OTC products are bought by individuals over age 50. “People are living longer, which means they are purchasing more drugs for longer periods of time,” he states. “That suggests there is strength and long-term growth in this market.” Retailers responding to various consumer issues will be in position to boost private brand sales, Bolling says. “It will be a big growth business as additional people self-medicate and are attracted to the clear, concise messaging and lower price of store brands,” he states. SB Mitchell is a freelance writer from Wilmette, Ill.

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CATEGORY INTELLIGENCE GENERAL MERCHANDISE

GO ONE BETTER To compete with national brand general merchandise, retailers need to offer value-added products that perform

DO address unmet needs in your category lineups to give your store brand a unique edge.

When performance is paramount, as it is in the general merchandise category, own brand retailers need to know what consumers need, convince them that their products will provide the performance they need and then actually provide it. Address unmet needs in your category lineups to give your store brand a unique edge with superior products, advises Thomas W. French Jr., CEO of Zoono USA LLC in Shrewsbury, N.J. Zoono, which creates a range of antimicrobial products. Continue to reinforce that your store brands are not simply generics, but rather thoughtful, value-added products. Make your store brands better by listening to your customers and building the products that meet their needs, French adds. Providing consumers high-quality private brand products that are as close to sought-after national brands as possible while saving them money also fosters loyalty to store brands, says Howard Kirschenbaum, vice president of sales for Trinity Plastics, an Armonk, N.Y.-based company that manufactures private-branded trash and foodcontact products. Store brands “need everything the national brand has and they need a ‘workaround’ for the things they can’t have because of various patents and trademark protections,” Kirschenbaum explains. “We try to give retailers the closest thing to the national brands without infringing on those patents and trademarks.”

DON’T forget about eyecatching packaging to make products stand out.

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Private brands are competing directly with national brands that have been around for decades, so it’s imperative to find ways to acquire their shoppers’ loyalty, adds John Orr, a vice president of sales for Ardagh Group-Glass, North America, a global manufacturer of glass and metal products for packaging. Suzanne Wood of X-Lite Corp., a Markham, Ontario-based company that manufactures a line of lighters for private brands, says “retailers are asking for their products to be recognized as their own private label that is unique to them, not just a name on a generic card or blister.” French says retailers with store brands should do their own work to uncover insights about their buyers to better serve them. “This will help elevate their status in the mind of the consumer,” he adds. “Imitation is barely the price of entry — they need to take their brands to the next level while still keeping the value position.” An important trend in the category is toward high-quality products that are easy to use, which inspired a recent innovation from Trinity Plastics: its Color Zip line of color-coded, press-to-close food contact bags, Kirschenbaum says. People tend to store boxes of food contact bags in drawers, and they don’t necessarily want to remove the boxes every time they need a bag, Kirschenbaum explains. Trinity’s color-coded bags (blue for freezer bags, red for storage bags and green for sandwich and snack bags) allow consumers to quickly identify the type of bag they are looking for and skip the time-consuming step of removing the box and putting it back away.

Opportunities abound

According to Chicago-based market research firm IRI, several private-branded general merchandise categories gained dollar and unit sales of 5 percent or more during the 52 weeks ending July 9, 2017, including: • auto fluids, 80.2 percent increase in dollar sales and 30.1 percent increase in unit sales, • bottles, 32.1 percent increase in dollar sales and 32.6 percent in unit sales, • soap dishes, 30 percent increase in dollar sales and 17.4 percent increase in unit sales, • non-disposable gloves, 25.8 percent increase

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CATEGORY INTELLIGENCE GENERAL MERCHANDISE

Socks Private Brands

All Brands

Dollar Sales (in millions)

$553.5

$2,203.7

Change vs. Year Ago

-17.7%

-2.9%

Dollar Share

25.1%

100%

Unit Sales (in millions)

125.4

389.2

Change vs. Year Ago

-18.0%

-7.1%

Avg. Price Per Unit

$4.41

$5.66

Private Brands

All Brands

Dollar Sales (in millions)

$190.8

$452.5

Change vs. Year Ago

+17.9%

+1.4%

Dollar Share

42.2%

100%

Unit Sales (in millions)

40.6

105.1

Change vs. Year Ago

+17.0%

-0.4%

Avg. Price Per Unit

$4.70

$4.30

Private Brands

All Brands

Dollar Sales (in millions)

$126.8

$225.1

Change vs. Year Ago

+8.2%

+2.9%

Dollar Share

56.3%

100%

Unit Sales (in millions)

18.2

41.6

Change vs. Year Ago

+8.7%

+3.4%

Avg. Price Per Unit

$6.98

$5.41

Total Gloves

Disposable Gloves

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in dollar sales and 12.8 percent increase in unit sales, and • household/kitchen storage bags, 22.3 percent increase in dollar sales and 15.8 percent increase in unit sales. Millennials, as in other store brand categories, may be driving the sales considering they are not bound by purchasing established brands, Orr says. Proving your brand is better is not only important to win over the brick and mortar business, but also in the pending online battle for store brands, Orr observes. Over the past decade, the number of consumers likely to purchase things online, including general merchandise, has exploded. As of 2017, approximately 34 percent of adults it surveyed had purchased something online in the past 30 days, according to Packaged Facts’ August report, “Amazon Strategies and the Amazon Shopper.” This represents a 72 percent increase over the past 10 years and a 22 percent gain over the past five years. In 2017, 3.5 percent of adults made online purchases at least 16 times a month — an increase of 67 percent in five years.

Go for the best

Store brand managers should look to make constant quality upgrades, value upgrades and stock market-leading items, says Deane Johnson, national

CATEGORY INTELLIGENCE GENERAL MERCHANDISE

Non-Disposable Gloves Private Brands

All Brands

Dollar Sales (in millions)

$64.1

$227.4

Change vs. Year Ago

+43.3%

0.0%

Dollar Share

28.2%

100%

Unit Sales (in millions)

22.5

63.5

Change vs. Year Ago

+24.7%

-2.8%

Avg. Price Per Unit

$2.85

$3.58

merchandise, they could take even more market share from national brands and be in an even better position to innovate, Kirschenbaum says. “I think that might be the next evolution we see in store brands.”

Get the look

Retailers creating, selling and promoting their own brands that can only be purchased in their stores should differentiate to gain allegiance, and packaging can be an effective vehicle to that end, Orr asserts, noting that improved packaging and labels make products stand out on the shelf to consumers looking for specific attributes or even aesthetically pleasing effects. Updating packaging is a must, Johnson adds. “We are constantly refreshing colors, fonts and quality.” SB Cvetan is a freelance writer based in Barrington, Ill.

sales manager for American Cleaning Supply in Monterrey, Mexico, a maker of cleaning tools. Product improvement is something store brands should always strive for, Kirschenbaum agrees. An example is Trinity’s premium and superpremium trash bags called Flextra and Flextra Xtra. The new bags feature increased strength and a drawstring closure that enables the bag to adjust to different-sized receptacles, Kirschenbaum says. As store brands become stronger and more established in general

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CATEGORY INTELLIGENCE HOUSEHOLD CLEANERS

WHERE QUALITY RULES Retailers offering store brands that are effective, convenient and safe can stay competitive in an evolving house cleaners market

DO offer selections that consumers perceive as being healthier and more functional.

When it comes to the merchandising of house cleaners, the price does not necessarily have to be right. Unlike many sectors where the lower cost of store brands gives retailers a competitive advantage, sales of cleaning supplies are heavily dependent on effectiveness, convenience, health attributes and sustainability, analysts report. Yet, store brands that keep pace with shopper trends and demands while standing out from national selections are in position to grab greater market share. “Slow growth in the household surface cleaner market places pressure on brands to distinguish products and innovate with the aim of catering to specific needs,” states Mintel, a global market research firm, in its November 2016 “Household Surface Cleaners - US report.” “As consumers increasingly look for convenient options for surface cleaning, multi-surface sprays and disposable wipes will continue to absorb sales from specialized segments. For this reason, secondary attributes, such as scent, packaging and natural ingredients are ways brands can better engage consumers.”

DON’T worry about offering the cheapest price. Consumers will pay for quality.

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Private brand retailers already benefit from the willingness of shoppers to switch brands, says Diana Sheehan, director of retail insights for Kantar Retail, a Bostonbased research and consulting firm. “Cleaning is a category where attributes and trust in efficacy are all that matter,” she states. “As long as my blue window cleaner cleans, I don’t care what it says on the bottle as far as the brand.” Not only is efficacy more important to many shoppers than price, but consumers will often question the quality of house cleaning products that are inexpensive, she says.

Keep it simple

Category activity, meanwhile, is also highly dependent on the ease in which shoppers can pinpoint appropriate products, Sheehan adds, which necessitates that retailers have a minimal amount of selections on shelves. “Cleaning is a low-interest category,” she says. “You want to go in, grab what you need, and get the heck out. Shoppers don’t need 20 varieties with many different scents. That is actually causing consumers to avoid the aisle.” Retailers also should merchandise private brands in blocks rather than intermingling the items with national brands, says Erin Crum, senior director of marketing for Butler Home Products LLC, a Marlborough, Mass.based supplier of cleaning tools. “By doing so, they are able to show products in a more impactful and cross-promotional way,” she states. In addition, product arrays with natural, organic and sustainable options will become increasingly popular as more shoppers, particularly younger consumers and households with children, weigh the consequences of chemical ingredients when making selections, Sheehan says. Indeed, 79 percent of consumers who clean their homes agree that it is important that packages display a list of ingredients, Mintel notes in its August “Cleaning the House - US report.” Sixty-seven percent of those shoppers also state that they are more likely to agree that products with natural ingredients are safer than selections with conventional elements. “Clear labeling improves transparency for consumers who may choose

CATEGORY INTELLIGENCE HOUSEHOLD CLEANERS products based on ingredients, eco-friendliness, free-from or fewer ingredients overall,” Stephen Brown, Mintel household analyst, states in the report. “A key challenge may come in balancing important attributes like robustness and time savings, while limiting overall ingredients used.” Besides offering selections that consumers perceive as being healthier and more functional than the national brands, retailers can distinguish their private brands by incorporating unique fragrances and leveraging packages that enable shoppers to view the contents, says Adam McCarthy, president of Greenology Products Inc., a Raleigh, N.C.-based supplier of organic detergents, sprays and specialty cleaners. “Better products translate to an overall better store environment experience and improves loyalty,” McCarthy states. “Private label retailers have been trading up in terms of price and quality to improve the shopper experience and drive higher ticket revenues.” Because millennials are a major shopper base, retailers should respond to the key interests of the segment, which includes items with a healthier aura, he says. “Overly busy labels with dubious claims are not appealing to millennials,” McCarthy states, adding that messaging on packages should be simple, clean, easy to understand and have verifiable claims. Such claims can include that a product is certified organic by the U.S. Department of Agriculture.

All-Purpose Cleaner/Disinfectant Private Brands

All Brands

Dollar Sales (in millions)

$51.4

$1,182.4

Change vs. Year Ago

-5.8%

+3.9%

Dollar Share

4.3%

100%

Unit Sales (in millions)

25.5

399.0

Change vs. Year Ago

-12.3%

+2.6%

Avg. Price Per Unit

$2.02

$2.96

Glass Cleaner/Ammonia Private Brands

All Brands

Dollar Sales (in millions)

$43.7

$222.0

Change vs. Year Ago

-7.6%

-5.9%

Dollar Share

19.7%

100%

Unit Sales (in millions)

21.3

75.4

Change vs. Year Ago

-16.3%

-7.3

Avg. Price Per Unit

$2.05

$2.94

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A payback from the package

Smaller pack sizes that are better for the environment also will become increasingly popular, McCarthy states, noting that “this new generation of shoppers will look to purchase products that appeal to them both functionally and aesthetically.” Many packages, meanwhile, already are lighter and easier to use, and there is growing interest in child-resistant and sustainable options, says Brandon Moore, brand marketing manager for the consumer packaging division at Berry Global Inc., an Evansville, Ind.-based packaging supplier. It is resulting in the greater distribution of such items as laundry and dish pods and highly concentrated formulas that allow for smaller, more convenient packages, he notes. Functional packaging elements also are becoming increasingly prevalent, such as the angled neck found in many toilet bowl cleaner bottles and laundry detergent closures with molded-in scrubbing bristles, he states. While Moore notes that the large national brands have historically been leaders in launching new packaging formats, store brands can gain in stature by having developers take a more deliberate approach to designs, which may require retailers and their suppliers to collaborate and become “more ambitious” in their endeavors. “There is a unique window of opportunity to create packaging that, both from a functional and decoration standpoint, can standout on shelves and e-commerce screens,” Moore states. “For most store brand retailers and their suppliers and partners, that’s going to require evolution in thinking.” Packaging, however, is just one of the myriad elements that will affect the demand for private brand house cleaners, and it is up to merchandisers to pinpoint and address the different variables. “Given the maturity of this category, a key challenge for companies and brands is to persuade consumers to consider purchase influencers beyond price,” Mintel states. SB Mitchell is freelance writer from Wilmette, Ill.

CATEGORY INTELLIGENCE ORAL CARE

A BIGGER BITE Greater consumer confidence in store brands is resulting in skyrocketing sector activity and expanding growth opportunities Shoppers are sinking their teeth into the private brand oral care sector. With a large base of consumers seeking lowercost products and perceiving private brands to be equal or superior to national brands, store brand sales are accelerating. Private brand toothpaste revenues were up 19.7 percent for the 52 weeks ending Sept. 30, 2017, versus just 2.1 percent for national brands, reports Nielsen, a New York-based market research firm. Store brand sales increases also are outpacing national brands in such categories as toothbrushes (6 percent versus -0.4 percent); floss (3 percent versus -1.7 percent); whitening kits (11.1 percent versus -10.7 percent); oral treatments (11.6 percent versus 1 percent);

DO offer an adequate assortment of store-branded options on the shelves to match consumer demand. DON’T forget to differentiate by spotlighting unique features and benefits on packages.

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oral hygiene accessories (8.2 percent versus 5.4 percent); denture care (0.3 percent versus -0.3 percent) and breath fresheners (10.9 percent versus -6.7 percent). “The perceived quality gaps between branded and private label products is fading,” says Jordan Rost, Nielsen vice president of consumer insights, adding that 73 percent of American say they believe store brands are a good alternative to name brands in the category. Because almost 50 percent of Americans also note that they would buy more private brands if additional products were available, “retailers need to ensure there is adequate assortment of store-branded options on the shelves to match consumer demand,” he states.

A sensitive sector

Overall oral care category revenues, meanwhile, also are increasing, with sales up 13.6 percent between 2012 and 2017, reports Mintel, a global market research firm. Toothpaste, at 38 percent, commands the largest share and, with a 2.8 percent sales increase over the last year, still is experiencing growth, Mintel notes, adding that greater revenue opportunities also remain. Indeed, while 97 percent of Americans brush their teeth, and 91 percent do so in the morning, just 81 percent say they brush before going to bed, Mintel states. Such persons — and particularly younger consumers — are falling short of the American Dental Association recommendation of brushing twice a day. Products that target sensitive teeth have an especially strong growth potential as 49 percent of Americans suffer from sensitive teeth, including 63 percent of persons between ages 18 and 34, Mintel notes. Yet, only 33 percent of consumers are buying oral care selections that reduce sensitivity and just 23 percent purchase toothpaste that is made for sensitive teeth, Mintel reports. “The gap between consumers who experience sensitivity and those who purchase products to relieve it represents an opportunity for sensitivity products to expand their penetration,” states Jana Vyleta, Mintel health and personal care analyst, in a June oral care market report. “An opportunity also exists for additional, unique oral care solutions to help consumers strengthen their routines and, in turn, overall oral health.” Products that are intended to improve appearance present another strong revenue opportunity as 43

CATEGORY INTELLIGENCE ORAL CARE percent of Americans brush with whitening toothpaste and 11 percent say they use whitening strips or kits, Mintel reports. “Calling out cosmetic and appearance-based benefits may be an effective way to persuade younger adults to purchase more functional oral care products, such as floss or a toothbrush,” Vyleta says. More retailers and suppliers, meanwhile, are seeking to boost sales of oral care products by enhancing the value proposition, says Anish Patel, president of Brush Buddies, an Ontario, Calif.-based toothbrush supplier. That includes merchandising packages that contain more than one product — such as multiple toothbrushes or a toothbrush and toothpaste combo — at a lower total price than if the items were sold separately, he says. “The trend is being driven by consumers who are seeking more for their money,” Patel states. “Such products have only been common at value stores, but now groceries and mass merchandisers are looking to offer such selections. It is enabling us to move more units.”

Appearance matters

To further boost store brand activity, retailers should differentiate their selections from the national brands while spotlighting unique features and benefits on the packages, he notes. “Offering distinct products is important because retailers that always sell ‘me-too’ selections will just be known for that,” Patel

Tooth Bleaching/Whitening Private Brands

All Brands

Dollar Sales (in millions)

$48.8

$308.5

Change vs. Year Ago

+11.2%

-2.3%

Dollar Share

15.8%

100%

Unit Sales (in millions)

3.0

13.3

Change vs. Year Ago

+8.3%

-0.5%

Avg. Price Per Unit

$16.45

$23.14

Private Brands

All Brands

Dollar Sales (in millions)

$12.8

$2,803.4

Change vs. Year Ago

+16.3%

+2.5%

Dollar Share

0.5%

100%

Unit Sales (in millions)

3.9

814.0

Change vs. Year Ago

+12.5%

-1.9

Avg. Price Per Unit

$3.32

$3.44

Toothpaste

says. “It is beneficial to have a mix of both.” Developing promotions and distributing coupons, including “buy one, get one free” offers, are an effective way for retailers to attract first-time buyers and as well as consumers who usually prefer national brands over store brands, says Meggin Lamb, marketing manager at OraTech, a South Jordan, Utah-based oral care product supplier. She adds that packaging elements also play an essential role in enhancing shopper interest in store brands. “Consumers want products that are sold at a lower cost but don’t have the appearance of compromising quality,” Lamb states. “It takes about seven seconds to make an impression, whether good or bad. Effective and eye-catching packaging designs draw consumers and add perceived quality and value. If a product looks cheap, consumers may assume it is not as effective as the national brands.” In addition to strengthening the appearance of store brands, retailers can enable shoppers to easily perform price comparisons by situating private and national brands with similar functions together on shelves, Patel says. That can include having separate sections for sensitivity and whitening alternatives. Other effective methods for spotlighting private brands include displaying shelf signs that announce a new SKU or unique feature as well as merchandising items in different areas of stores, such as at the checkout, health and beauty aisle and travel product sections, he states. Retailers that collaborate with manufacturers in developing merchandising strategies will further strengthen their programs, he notes. “It is important for suppliers to learn about past product failures from retailers in order to see where they can make improvements,” Patel states. “Feedback can focus on a product’s attributes or the promotion that was used. That information is invaluable and retailers that share it can make a big difference.” Another key retailer focus, Lamb adds, should be on maintaining product quality while keeping prices low, particularly because consumers can easily research ingredients when comparing the store and national brands. SB Mitchell is freelance writer from Wilmette, Ill.

158

Store Brands /November 2017 / www.storebrands.com

It’s No Secret. Woeber’s Knows Private Label.

We all know how secretive the private label industry can be, so we don’t talk directly about all the companies that we do private label for. Big companies, little companies and everything in between. It’s private. But here’s what we can tell you. Behind the labels of some of your favorite products is one company: Woeber’s. We’re one of the largest family-owned private label manufacturers in the country. We’ve been producing high-quality, cost-effective products for over 100 years and our expertise can help you grow your private label sales. Our facility is equipped to produce a variety of mustards, pure horseradish, sauces, vinegars, lemon juice, and more. We can use your recipe, one of our own, or we can custom formulate a recipe that’s packaged for your brand. We’d love the opportunity to meet you and learn more about your company. Please stop by our booth (#1642) and let’s have a chat. If you’re lucky, we may even teach you our secret handshake.

For more information, visit WoeberMustard.com.

PLMA Booth #1642

Fancy Mustards, Vinegars, and Specialty Sauces. Woeber Mustard Company • Springfield, Ohio • www.woebermustard.com

Contact Wally Miller 1-800-548-2929 wallymiller@woebermustard.com Made in the U.S.A.

ADVERTISER NAME

PAGE#

ACORSA USA INC...................................................................................... 62,75 AFP Advanced Food Products, LLC ............................................................... 73 Agropur Ingredients.......................................................................................... 81 ALMARK FOODS ............................................................................................ 69 Alpha Packaging .............................................................................................. 117 American Nutrition, Inc. .................................................................................. 17 Anutra Grain ...................................................................................................... 45 Ardent Mills ......................................................................................................... 7 Arylessence......................................................................................................... 19 Atlas Paper Mills ................................................................................................ 39 Axium Foods .................................................................................................... 139 B.O.V. Solutions ........................................................................................... 44, 71 Bakkavor Foods USA Inc ................................................................................. 76 Bascom Family Farms ....................................................................................... 77 Berner Food & Beverage .................................................................................. 15 Berry Global, Inc. .............................................................................................. 90 Biazzo Dairy Products ...................................................................................... 91 Caraustar ...................................................................................................... 33, 50 CaseStack ............................................................................................................ 47 Catania Oils ........................................................................................................ 22 Catania Oils ...................................................................................................60-61 Chase Products Co. ......................................................................................... 153 Chelten House Products, Inc. .......................................................................... 16 Citadelle Maple Syrup Cooperative ................................................................ 51 Colordyne Technologies ................................................................................. 113 Commercial Bakeries ...................................................................................... 131 Copper Moon Coffee, LLC ............................................................................. 105 DairiConcepts .................................................................................................. 133 Daymon ............................................................................................................ 145 Delgrosso Foods Inc.......................................................................................... 14 Disc Graphics ................................................................................................... 143 Eddy Packing Co. ............................................................................................ 125 Envi Reusable Bags ............................................................................................ 24 Fine Foods International ................................................................................ 123 Florapharm Tea USA LP .................................................................................. 42 Furlani’s Food Corporation ........................................................................... 9,11 G.S. GELATO & DESSERTS, INC. ............................................................... 128 Gehl Foods LLC ................................................................................................. 49 Gel Spice Co. ...................................................................................................... 40 Giovanni Foods.................................................................................................. 13 Global Tissue Group ...............................................Spine, Covertip,IFC-3, BC Godshalls Quality Meats Inc ............................................................................ 27 Great Lakes Cheese Co ................................................................................... 134 GXT Green Inc. ................................................................................................. 54 Heartland Food Products Group................................................................... 103 Hickory Harvest Foods ................................................................................... 135 Ice River Springs Company ........................................................................ 37, 80 Irving Consumer Products Inc. ....................................................................... 21 Italian Trade Agency ...........................................................................147, Insert ITI Tropicals ....................................................................................................... 98 J&J SNACK FOODS CORP ............................................................................. 82

ADVERTISER NAME

PAGE#

JTM FOODS ...................................................................................................... 26 Kruger North America ................................................................................... 118 Lassonde Pappas & Company, Inc .................................................................. 48 Leclerc Foods, USA ........................................................................................... 89 Lidestri Food & Beverage ................................................................................. 23 Massimo Zanetti Beverage USA ...................................................................... 35 Mercer Foods ..................................................................................................... 95 Mondiv/Division of Lassonde Specialties Inc................................................ 84 Mother Parkers Tea & Coffee ............................................................53,55,57,59 Nepa Carton & Carrier Company ................................................................. 112 NSI Group .......................................................................................................... 99 NVE Pharmaceuticals Inc ................................................................................ 20 Old Fashioned Foods ...................................................................................78-79 Once Again Nut Butter ................................................................................... 120 Optima Machinery Group ............................................................................. 108 Private Brands Consortium PBC .................................................................... 87 Pyure Brands .................................................................................................... 101 Red Gold, LLC .................................................................................................IBC Request Foods .................................................................................................. 130 Resolute Tissue ................................................................................................ 151 Riverbend Foods................................................................................................ 41 Royal Paper Converting Inc ........................................................................... 149 RV Industries, Inc.............................................................................................. 20 Safety Quality Food Institute ........................................................................... 46 Sam’s Club........................................................................................................... 31 Seneca Foods ...................................................................................................... 18 Sentry Manufacturing ..................................................................................... 157 Shearer’s Foods LLC ................................................................................ 114-115 Sioux Honey Association................................................................................ 100 Smitty Bee Honey ............................................................................................. 97 Snack Innovations, INC.................................................................................. 141 Snak King Corp ............................................................................................... 137 Sofidel America.................................................................................................. 83 Sopakco Packaging .......................................................................................... 111 Soundview Paper Company ............................................................................. 43 Soy Connection ................................................................................................. 56 Subco Foods ..................................................................................................... 107 Superior Pack Group ......................................................................................... 25 Taste of Nature Foods Inc. ................................................................................ 86 TG Eco Products ............................................................................................. 119 The Fillo Factory .............................................................................................. 128 The Fremont Company ..................................................................................... 58 The Wornick Company..................................................................................... 65 Tower Laboratories.......................................................................................... 144 US Alliance Paper ................................................................................................ 5 US Nonwovens Corp.................................................................................. 67,161 Value Smart Products ..................................................................................... 150 Velas Hispaniola .............................................................................................. 155 Woeber Mustard Mfg. Co. .............................................................................. 159 Woodstock Farms ............................................................................................ 121 Zweigle’s ............................................................................................................ 129

United States Postal Service

1. Publication Title

Statement of Ownership, Management, and Circulation (Requester Publications Only)

Store Brands 4. Issue Frequency

2. Publication Number

3. Filing Date

0 1 9 0 9 8 5 1 October 1, 2017 5. Number of Issues Published Annually6. Annual Subscription Price

Monthly 12 US- $135.00 7. Complete Mailing Address of Known Office of Publication (Not Printer) (Street, city, county, state, andContact ZIP+4) Person EnsembleIQ 570 Lake Cook Road Suite #310 Deerfield, IL. 60015

Shelly Patton Telephone

8. Complete Mailing Address of Headquarters or General Business Office of Publisher (Not Printer)

215-301-0593

EnsembleIQ 570 Lake Cook Road Suite #310 Deerfield, IL. 60015 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor (Do Not Leave Blank) Publisher (Name and Complete Mailing Address) Kevin Francella EnsembleIQ ` 111 Town Square Place, Suite 400 Jersey City, NJ 07310 Editor (Name and Complete Mailing Address) Lawrence Alyward EnsembleIQ 570 Lake Cook Road Suite #310 Deerfield, IL. 60015 Managing Editor (Name and Complete Mailing Address) Lawrence Alyward EnsembleIQ 570 Lake Cook Road Suite #310 Deerfield, IL. 60015 10.

Owner (Do not leave blank, It the publication is owned by a corporation, give the name and address of the corporation immediately followed by the names and addresses of all stockholders owning or holding 1 percent or more of the total amount of stock. If not owned by a corporation, give the names and addresses of the individual owners. If owned by a partnership or other unincorporated firm, give its name and address as well as those of each individual owner. If the publication is published by a nonprofit organization, give its name and address.)

Full Name Eagle Operating Corp (d.b.a. EnsembleIQ)

Complete Mailing Address 570 Lake Cook Road, Suite 310, Deerfield, IL. 60015

11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 percent or more of Total Amount of Bonds, Mortgages, or Other securities. If none, check box None Full Name

Complete Mailing Address

Eagle Operating Corp (d.b.a. EnsembleIQ)

570 Lake Cook Road, Suite 310, Deerfield, IL. 60015

12. Tax Status (For completion by nonprofit organizations authorized to mail at nonprofit rates) (Check one) The purpose, function, and nonprofit status of this organization and the exempt status for income tax purposes: Has Not Changed During Preceding 12 months Has Changed During Preceding 12 Months (Publisher must submit explanation of change with this statement) PS Form 3526-R, July 2016 (Page 1 of 3 (Instructions Page 3)) PSN: 7530-09-000-8855 PRIVACY NOTICE: See our privacy policy on www.usps.com

160

Store Brands / November 2017 / www.storebrands.com

www.storebrands.com / November 2017 / Store Brands

160

Category Closeup Confectionery

Sweet spots

CATEGORY GROWTH DRIVERS, ACCORDING TO THE SWEET & SNACKS EXPO:

A look inside the candy store Chocolate is the most popular candy — no surprise here. It generated sales of

$11.2 billion in sales from June 2015 through June 2016, according to Nielsen.

Non-chocolates are also gaining in popularity — sales increased to $6.7 billion from June 2015 through June 2016 — up 4.7 percent from

the previous time period. Clearly, there is more opportunity for private brands in the category, considering that share of segment for private brands in the candy category has been hovering around 4.1 percent for several years, according to Nielsen. A positive note, private brand candy sales have grown nearly $140 million from 2011 through 2016. Smart merchandising can go a long way to ensure continued growth when it comes to both planned and impulse purchase occasions of candy. And these efforts are critical for store brand candy and chocolate products if retailers want to make them stand out among the sea of national brand offerings.

162

NEW ITEM ROTATION

PREMIUM CHOCOLATE

As one of the most innovative categories across the store, one prevailing theme is that of new items driving significant growth for the candy aisle. Shoppers have their traditional favorites, but also like to try new and different items.

Over 2016, premium chocolate grew dollars nearly 10 percent on top of 16 percent in 2015. In addition to growing dollars, premium was also the only chocolate segment that grew volume.

CHEWY CANDY What premium is doing for chocolate, chewy is doing for non-chocolate. Making up nearly half of the entire non-chocolate segment, the innovation seen in chewy along with the growing consumer uptake, drove a 5.3 percent dollar gain in addition to unit and volume increases in 2016.

SEASONAL ITEMS Seasonal periods continue to drive enormous incremental business with ample opportunity for crossmerchandising with other meal or celebratory items.

$140 million

Confectionery sales growth from 2011 - 2016

Year-over-year sales

Share of segment

52 weeks from October through October

BY YEAR

PRIVATE BRANDS IN BILLIONS

737.7

827.4

856.8

2011-12

2012-13

2013-14

2014-15

2015-16

Source: Nielsen

Store Brands / November 2017 / www.storebrands.com

ALL BRANDS IN BILLIONS

BY YEAR

PRIVATE BRANDS PERCENT

ALL BRANDS PERCENT

18.5

2011-12

3.8

96.2

19.27

2012-13

4.1

95.9

19.81

2013-14

4.1

95.9

20.36

2014-15

4.2

95.8

2015-16

4.1

95.9

895.6

876.8

20.66

Source: Nielsen

Your Brand... Our Passion for 75 Years Showcasing our Products @ PLMA Booth #F7410

Highest Quality Tomato Products for Your Brand contact Red Gold at PrivateBrand@RedGold.com or 765.557.5500 x1619

https://redgoldfoods.com/retail/store-brands

Visit Us at PLMA Global Tissue Group, Inc. New Location- H1506

870 Expressway Drive South Medford, NY 11763 Toll Free: (866) GTG-Only (484-6659) Phone: (631) 419-1300 Email: info@globaltissue.com www.globaltissuegroup.com

BUY AUTHENTIC ITALIAN, GET MORE

PLMA 2017 Chicago • November 12-14

Donald E. Stephens Convention Center • Rosemont, IL

Visit the Italian Pavilions FOOD AND BEVERAGES

HOME AND HEALTH

BOOTH F1817

BOOTH H2004

Chicago Office

Discover Italian exhibitors at: www.italianprivatelabel.com Show_Directory_PLMA_2017.indd 1 Untitled-1 1

10/27/17 5:16 PM 10/30/17 6:30 PM

2017 PLMA Italian Pavilion Participants FOOD AND BEVERAGES BOOTH F1817 SAOR ITALIA SURMONT TEDESCO TOPAN VALPIZZA ZINI PRODOTTI ALIMENTARI

BOOTH

F1830 F1835 F1807 F1715 F1739 F1733

26 26 27 27 28 28

5 124

424

600 601 700

219

419

215

415

800 801

1 1200

116

1300 1301 1400

114

1500

112

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210

410

205

405

1600

1700

108

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170

107

190 2000

CB STAMPI CHEMICAL FLACER CSC ECO PETS ITALIA ICC

BOOTH

H2104 H2003 H1901 H1903 H1902

29 29 30 30 31

104

400

200 100

PLMA

Show

LOBBY

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Escalator to Sky Hall

3400

3300 3101 3100

3000

2700

2502 2501 2500

2300

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1902 3303

2903

3103

2703

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3405 3305

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3106

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3108

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2120

3433 3333

3233

3534

3434 3334

3234 3133

3535

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3235

2833 2733 2933

2834 2835

2020

2121

2330

2123

2734

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2635 2535

2023

2223 2124 2125

2227 2127 2228 2128

2230 2130 2231 2131

2030 2032

2432 2332

3532 3533

2423 2323

2825 2725 3026 2926

3527

1717

2021

3126

3226

1311

1615 1515

1411

1414 1314

1917

2117 2018

2518

3522 3523

1511

1616 1516

2418

2718 2719

1306

1614 1514

2715 2417

3418 3318

1506

1911

2111 2314

3515

1705

1711

2312 2511

3013

3524

1905

2508

203 204 303 304

2509

3011

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2433 2333

2233

2434 2334

2234

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2034 2035

2 Show_Directory_PLMA_2017.indd 2 Untitled-1 1

224

Concession

6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25

Beverage Station

F1734 F1815 F1720 F1703 F1834 F1700 F1722 F1808 F1811 F1702 F1827 F1727 F1726 F1824 F1826 F1725 F1802 F1730 F1732 F1832 F1707 F1803 F1839 F1840 F1740 F1820 F1816 F1735 F1736 F1838 F1724 F1701 F1705 F1731 F1822 F1738 F1831 F1708 F1711 F1825

Women

BOOTH

Men

ITALY AT PLMA 2017 — www.italianprivatelabel.com

ACETAIA BELLEI LUIGI E FIGLI ACETAIA TERRA DEL TUONO ACETIFICIO MARCELLO DE NIGRIS ACETUM AGOSTONI CHOCOLATE AGRITALIA AGROMONTE ANDRIANI BERTAGNI 1882 BHB ITALIA BOCON BONOLIO CAMPO D’ORO VILLA REALE CASA DEL GELATO CASTELFOOD DALLA COSTA ALIMENTARE DIAL DOLCERIA ALBA F.I.A.D. F.LLI POLLI F.LLI SACLÀ FARMO FATTORIE GAROFALO FIRMA ITALIA FUDEX G7 GHIGI FOOD INDUSTRIES GRAMM GRUPPO FINI IL VECCHIO FORNO LA ROCCA MANCUSO VINCENZO & C. MEDYS MONTALBANO IND. AGR. NUOVA INDUSTRIA BISCOTTI CRICH OLEIFICIO RANIERI OLEIFICIO ZUCCHI PEDON RONCADIN S.I.A. SOCIETÀ ITALIANA ALIMENTI

10/27/17 5:16 PM 10/30/17 6:31 PM

1617

1417

Phones Women

Men

Home a

501 124

224

424

219

419

600 601 700

North Hall — Food and Beverages

506 507

602

701

608

606 706 707

703

Concession

708 814

800 801

806 807

803

812

809

Concession

1105

1100 215

116

1108

1205

1202

Men

Women

816 1016

1200

1111

1115

1211

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1021

1118

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1038

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1148 1149 1150 1151

1152

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1158 1159 1160

1249 1250 1251

1252

1255

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1246

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114

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107 205

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108

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RES Service Center

815

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1324

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1 646

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2149

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1069 1162 1163 1164 1165 1166 1167

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1362 1363 1364 1365 1366 1367

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1462 1463 1464 1465 1466 1467

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1562 1563 1564 1565 1566 1567

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1762 1763 1764 1765 1766 1767

2059

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2162 104

29 29 30 30 31

2100

2105

2108

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100

2113

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2140

2138 2238

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2159

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PLMA 2613

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2615

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2917

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3114

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2543 2544

2636 2637 2638 2639

2641 2642

Concession Stand

2741

2548

2553

2559

2643

2743 2744 2745

2841 2842 2843 2844 2845

2746 2846

2938

2941

2943 2944

2946

3034 3035 3036

3038 3039

3041

3043 3044

3046 3047

3136

3138 3139

3141

3234

3236

3238

3241

3243

3334

3336 3337 3338 3339

3341

3343 3344

3134

3222

3219

2736 2737 2738 2739

2934 2935 2936

3127

3124

3117 3217 3218

2734

2834 2835 2836 2837 2838 2839

2826

3126

LOBBY

2538

2646

2717

2914

2533 2534 2535 2536 2537

2617

2714

Idea Supermarket 2911

2531

2529

2627

2622 2624

Handicap Ramp

2711

2527

2523

3209

3143

3147 3246 3247

3309

3322

3324 3325

3422

3424

3312

3314

3512

3514 3515

3517

3519

3612

3614

3617

3619 3620

3712

3714

3717

3719

3722

3724

3726

3812

3814 3815

3817

3819

3822 3823

3824

3826

3417

3409 3509

3319

3317

3419

3522

3327

3429 3430

3434

3436 3437 3438 3439 3441

3523 3524 3525 3526

3528 3529 3530

3623 3624 3625 3626

3628 3629 3630

3541

3538

3534

3536 3537

3634

3636 3637 3638 3639

3641 3642

3734 3735 3736 3737

3730

3834 3835 3836 3837

3809 PLMA

2300

1901

Housewares Showcase

1902 1903

2303 2104 2004 2003

2105

200

1905

1705

1711

2311

1712

2312

1714

206

209

212

306 307

309

312 313 314

500 1506

3923

3925

4019 4020

4023

4025

1511

213

403

602

603

702

703

1615 1515

606

809

806

800

906

2220

2120

2020

2023

2223 2124 2125

5 2325

1002

1003

1617

1417

1100

1102

1103

1200

1203

3933

3935 3936 3937

4224 4225

4324

4421

4424 4425

4517

4519

4521

4617

4619

4621

4715

4717

4719

4817

4819 4820

4524

4813

Men

4624 Women

Concession

908 909 1011

1206

3930

RES

4124 4125

4321

4515

1015

1006

1018 1218

1211 1717

2121

2123

1000

4416 4417 4418 4419

4613

4713

1411

4221

4318

708

706

1311

1414 1314

4121

4220

3927 4027

3839

4227

4513 600 700

4218

4316 4317

406

502 503 504

4118 4119 4120

4115

4313

1917

2117

2021

3 2323

3919

4017

1306

1616 1516 2217 2218

2018

2320

3917

4014 4015

1614 1514

2314

2317

3914

4012

4212

203 204 303 304

1911

2111

3912

4112 1703

400 2305

112

110 111

3739

1213

1214 1215 1216

1208

Phones Women

Men

Home and Health

6 2326

7 2327

2330

2227 2127

ITALY AT PLMA 2017 — www.italianprivatelabel.com

ITALY AT PLMA 2017 FLOOR PLAN

2228 2128

2230 2130 2231 2131

2030 2032

2 2332

3 2333

2233

4 2334

2234

2033 2133

2034 2035

Chicago Office

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2017 PLMA Italian Exhibitor Categories

ITALY AT PLMA 2017 — www.italianprivatelabel.com 4

FOOD AND BEVERAGES ACETAIA BELLEI LUIGI E FIGLI ACETAIA TERRA DEL TUONO ACETIFICIO MARCELLO DE NIGRIS ACETUM AGOSTONI CHOCOLATE AGRITALIA AGROMONTE ANDRIANI BERTAGNI 1882 BHB ITALIA BOCON BONOLIO CAMPO D’ORO VILLA REALE CASA DEL GELATO CASTELFOOD DALLA COSTA ALIMENTARE DIAL DOLCERIA ALBA F.I.A.D. F.LLI POLLI F.LLI SACLÀ FARMO FATTORIE GAROFALO FIRMA ITALIA FUDEX G7 GHIGI FOOD INDUSTRIES GRAMM GRUPPO FINI IL VECCHIO FORNO LA ROCCA MANCUSO VINCENZO & C. MEDYS MONTALBANO IND. AGR. NUOVA INDUSTRIA BISCOTTI CRICH OLEIFICIO RANIERI OLEIFICIO ZUCCHI PEDON RONCADIN S.I.A. SOCIETÀ ITALIANA ALIMENTI SAOR ITALIA SURMONT TEDESCO TOPAN VALPIZZA ZINI PRODOTTI ALIMENTARI HOME AND HEALTH CB STAMPI CHEMICAL FLACER CSC ECO PETS ITALIA ICC

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BOOTH F1734 F1815 F1720 F1703 F1834 F1700 F1722 F1808 F1811 F1702 F1827 F1727 F1726 F1824 F1826 F1725 F1802 F1730 F1732 F1832 F1707 F1803 F1839 F1840 F1740 F1820 F1816 F1735 F1736 F1838 F1724 F1701 F1705 F1731 F1822 F1738 F1831 F1708 F1711 F1825 F1830 F1835 F1807 F1715 F1739 F1733 BOOTH H2104 H2003 H1901 H1903 H1902

WEBSITE www.bellei.it www.terradeltuono.it www.denigris1889.com www.acetum.it www.agostonichocolate.com www.agritalia.com www.agromonte.it www.molinoandriani.com www.bertagni.it www.bhb.name www.bocon.it www.bonolio.it www.campodoro.com www.casagelato.it www.castelfood.it www.dallacostalimentare.com www.dialfunghi.it www.dolceriaalba.it www.fiad.it www.polli.it www.sacla.us www.farmo.com www.fattoriegarofalo.it www.firmaitalia.it www.fudex.com www.g7gelati.it www.ghigiusa.com www.casamilo.it www.nonsolobuono.com www.ilvecchioforno.com www.olivelarocca.it www.mancusogelati.it www.mitaly.eu www.montalbanofood.com www.crich.it www.olioranieri.com www.zucchi.com www.pedon.it www.roncadin.it www.societaitalianaalimenti.it www.saorsrl.com www.surmont.it www.tedescogroup.it www.topan.it www.valpizza.it www.pastazini.it WEBSITE www.cbstampi.it www.flacer.com www.csc-italy.com www.ecopetsint.com www.icc-italy.com

R LE OL ZE R A GL S INT L R/ OD /L EL GA GO HES E AR T N ED SC Z I S V K U OZ SY IC BA BR /M E AM AD/ OM ES ESE SUR S L E O K E O BA BR BR CA CH CL

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Acetaia Bellei Luigi e Figli Via Nuova 55/C 41017 - Casoni di Ravarino (MO), Italy Tel. +39 059 909111 Fax +39 059 909910 www.bellei.it E-mail: info@bellei.it Contact: Stefano Puggioli Production of Balsamic Vinegar of Modena, glazes and condiments under Bellei brand, and private label arrangements. Traditional Balsamic Vinegar of Modena.

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

CERTIFICATIONS: BRC, IFS, BIO/NOP, Vegan, IGP, DOP

BOOTH # F1734 Acetaia Terra del Tuono Via Paolo Monzani, 5 42122 Reggio Emilia (RE), Italy Tel. +39 0522 343317 â&#x20AC;˘ Fax +39 0522 342435 www.terradeltuono.it E-mail: massimo@terradeltuono.it roberto@terradeltuono.it Contact: Massimo Zini, Roberto Zini The mission of Acetaia Terra del Tuono is to produce Balsamic specialties of high quality always trying to create innovative products. Our goal is to develop new technologies and balsamic innovations, always having respect towards the Balsamic Vinegar century-long tradition. In our assortment we offer lots of different and unique specialties, from the more classical to the more innovative, in order to meet every customer demand. We use accurately selected raw materials and produce genuine and natural products, without the addition of colorings, preservatives, thickening agents, sugars and caramels. To ensure our efficiency and quality we are BRC and IFC certified. CERTIFICATIONS: BRC, IFC

BOOTH # F1815 6 Show_Directory_PLMA_2017.indd 6 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:14 PM

Acetificio Marcello de Nigris SS Sannitica 87 - Zona ASI 80023 – Caivano (NA), Italy Tel. +39 081 8808911 • Fax +39 081 8359026 www.denigris1889.com E-mail: ciro@denigris.it Contact: Ciro Cimmino Master vinegar makers since 1889, a story of passion. For over three generations our family has dedicated itself to the production of vinegar with passion and knowledge in the tireless search for the best possible quality products.

BOOTH # F1720 Acetum Via Sandro Pertini 440 41032 – Cavezzo (MO), Italy Tel. +39 0535 410811 Fax +39 0535 41800 www.acetum.it E-mail: sales@acetum.it Contact: Luca Bombarda Acetum is leader in the production of Balsamic Vinegar of Modena. Through the years, the company has been able to affirm its leading position, representing about 30% of the entire production. Corporate philosophy has always been based on respecting consumers and environment. CERTIFICATIONS: Halal, Kosher, Organic, Vegan

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: ORGANIC, HALAL, BRC, IFS, ISO9001, GMO FREE

BOOTH # F1703 7 Show_Directory_PLMA_2017.indd 7 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:14 PM

Agostoni Chocolate 8616 La Tijera Blvd., Suite 512 90045 - Los Angeles, CA Tel. (213) 261-0057 Fax (310) 670-0596 www.agostonichocolate.com E-mail: sales@agostonichocolate.com Contact: Federica Sirelli

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

Family operated since 1946, we are an Italian modern artisan bean-to-bar producer of premium all natural chocolate, offering unique and customizable private-label recipes. We secure superior quality fermented cocoa beans through an exclusive, well established Equal Partner Direct Buying program. CERTIFICATIONS: Organic, Fair Trade, GMO Free, Gluten Free, Kosher

BOOTH # F1834 Agritalia Centro Direzionale Isola E2 Scala A 80143 - Naples (NA), Italy Tel. +39 081 7506111 Fax +39 081 7506199 www.agritalia.com E-mail: marketing@agritalia.com Contact: Leo Nucera With more than 30 year of experience in the US market, Agritalia acquired a leading expertise in exporting authentic Mediterranean food. Key categories are: pasta, extra virgin olive oil, balsamic vinegar, pasta sauce, frozen products and many others from value to artisan private label programs. Shipping over 1,500 containers per year, Agritalia offers integrated logistics solutions. CERTIFICATIONS: Organic, Kosher, Halal, BRC, Gluten Free and NON-GMO

BOOTH # F1700 8 Show_Directory_PLMA_2017.indd 8 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:15 PM

Agromonte C.da Coffa, Zona industriale 97012 - Chiaramonte Gulfi (RG), Italy Tel. +39 0932 925226 Fax +39 0932 929011 www.agromonte.it E-mail: giusy.arestia@agromonte.it Contact: Giorgio Arestia

CERTIFICATIONS: BRC, IFS, HALAL, KOSHER, BIO, USDA

BOOTH # F1722 Andriani Via N. Copernico s.n. Zona PIP 70024 - Gravina in Puglia (BA), Italy Tel. +39 080 3255801 Fax +39 080 3221304 www.molinoandriani.com E-mail: info@andrianispa.com Contact: Francesco Andriani Complete range of gluten free pastas innovative and good tasting made of naturally gluten free ingredients such as: Buckwheat, Brown Rice, Quinoa, Corn, Amaranth, Lentils, Peas, Chickpeas, Mung Beans, flour mix and more. CERTIFICATIONS: BRC - IFS, MULTIUTILITY GREEN, MARCHI SPIGA BARRATA, SGS, IT BIO 008, GFCO USA, USDA, NON GMO, OU, EU K, GFCP, VEGAN OK

ITALY AT PLMA 2017 — www.italianprivatelabel.com

Located in Chiaramonte Gulfi (Sicily) – Italy, our company, ‘Società Agricola Monterosso’ specializes in the production of products based on cherry tomatoes which are harvested and immediately processed. We also produce a wide range of products ideal for seasoning pasta, pizza and to spread on bruschetta or bread. Our main product is cherry tomato pasta sauce available in bottles of: 330g/12,69 ounces and in tin 2kg/70,54 ounces.

BOOTH # F1808 9 Show_Directory_PLMA_2017.indd 9 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:16 PM

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Bocon Via Montello, 72 31053 - Pieve di Soligo (TV), Italy Tel. +39 0438 980130 Fax +39 0438 980668 www.bocon.it E-mail: bocon@bocon.it Contact: Giacomo Baseotto Since 1987 Bocon has been producing frozen ready meals, multigrain blends, snacks, and desserts inspired by the Italian tradition but open to new trends. Are you looking for the right partner for your PL products? You found it.

BOOTH # F1827 Bonolio C.da Bordea 92019 - Sciacca (AG), Italy Tel. +39 0925 84500 Fax +39 0925 86778 www.bonolio.it E-mail: salvatore@bonolio.it Contact: Salvatore Bono

Certified Sicilian Extra Virgin Olive Oil P.D.O. (Protected Designation of Origin) Val di Mazara, P.G.I. (Protected Geographical Indication) SICILIA, Organic Italian Extra Virgin Olive Oil, Italian Extra Virgin Olive Oil, Nocellara Olives, Sicilian Citrus Marmalade. CERTIFICATIONS: P.D.O. (Protected Designation of Origin) Val di Mazara, (Protected Geographical Indication) SICILIA, 100% ORGANIC (USDA), OU Kosher. BRC and ISF certification.

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

CERTIFICATIONS: BRC, IFS

BOOTH # F1727 11 Show_Directory_PLMA_2017.indd 11 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:17 PM

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Castelfood Via Brose, 9/1 35010 - San Giorgio delle Pertiche (PD), Italy Tel. +39 049 9330355 Fax +39 049 0998124 www.castelfood.it E-mail: ilaria.girolimetto@castelfood.it Contact: Ilaria Girolimetto

CERTIFICATIONS: IFS, BRC, BIO, VEGAN OK

BOOTH # F1826 Dalla Costa Alimentare Via della Fornace, 131 31023 - Castelminio di Resana (TV), Italy Tel. +39 0423 484402 Fax +39 0423 484122 www.dallacostalimentare.com E-mail: export@dallacostalimentare.com Contact: Lorenza Veronese The Dalla Costa Family has been committed to the production of durum wheat semolina pasta for 3 generations. Produced in our Castelminio di Resana plant, we select only the best ingredients according to ancient rules. CERTIFICATIONS: IFS, BRC, ISO9001, Kosher, Vegan OK

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

Castelfood is a producer of cereal cakes and snacks for PL and under our own brand. The selection of rice and corn cakes includes organic products with seeds and pseudo cereals, triangular snacks and coated cakes. We are able to produce a variety of cereal cakes from salty to sweet, flavored or covered with chocolate.

BOOTH # F1725 13 Show_Directory_PLMA_2017.indd 13 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:17 PM

Dial Via dei Prati 60 38057 - Pergine Valsugana (TN), Italy Tel. +39 0461 534505 Fax +39 0461 533030 www.dialfunghi.it E-mail: info@dialfunghi.it Contact: Karen Lucy Veltman With over 25 years of experience, we are considered a leader in Italy in the processing of dried mushrooms. Our company has expanded its commercial offer introducing innovative products for industries and its latest “ready to use” mushroom creams.

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: UNI EN ISO 9001:2008, IFS , BRC , ICEA

BOOTH # F1802 Dolceria Alba Via Vittime del Vajont, 40 10024 - Moncalieri (TO), Italy Tel. +39 011 0625611 Fax +39 011 0620156 www.dolceriaalba.it E-mail: export@dolceriaalba.it Contact: Carlo Rolle Dolceria Alba is an Italian Company which produces a selection of High Quality Frozen Desserts. CERTIFICATIONS: BRC, IFS, HALAL

BOOTH # F1730 14 Show_Directory_PLMA_2017.indd 14 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:18 PM

F.I.A.D. Via Palatucci 84091 - Battipaglia (SA), Italy Tel. +39 0828 614232 Fax +39 0828 308030 www.fiad.it E-mail: info@fiad.it Contact: Mauro Mandia FROZEN PIZZA - Handmade high border crust, irregular shape from hand toss, soft texture made according to the NEAPOLITAN tradition.

BOOTH # F1732 F.lli Polli Via C. Battisti 51015 - Monsummano Terme (PT), Italy Tel. +39 0572 95621 • Fax +39 0572 952525 www.polli.it E-mail: exportdivision@polli.it Contact: Silvia Tagliaferri Polli S.p.A. has been active in the sector of preserved food since 1872 on both national and international markets. Polli produces typical Mediterranean and Italian vegetables in oil, in vinegar, sweet/sour, brine, sauces for pasta, Pesto’s, olives, Antipasti in oil. Polli operates in respect for quality and passion for traditional taste, controlling the entire process, selecting the best raw materials and working with advanced packaging systems. Today, the Polli group operates 3 high-tech factories in Italy and Spain. Polli holds the leadership in Italy’s private label manufacturing. Polli is certified and guided by 3 leading business standards: IFS, BRC and ISO and offers a complete range of products to satisfy consumer needs defined by current culinary trends.

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: BRC, IFS

CERTIFICATIONS: IFS, BRC, ISO

BOOTH # F1832 15 Show_Directory_PLMA_2017.indd 15 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:19 PM

F.lli Saclà Piazza Amendola 2 14100 - Asti (AT), Italy Tel. +39 0141 3971 Fax +39 0141 598769 www.sacla.us E-mail: export@sacla.it Contact: Alberto Bretti

ITALY AT PLMA 2017 — www.italianprivatelabel.com

Saclà was founded in Asti, Piedmont, Northern Italy, more than 75 years ago. Today the company is still passionately run by the same family of food lovers dedicated to making authentic contemporary Italian Food such as pesto, pasta sauces, cheese based pasta sauces, antipasti oven baked tomatoes, and bread toppings. Saclà still uses only the finest selected ingredients and, not surprisingly, all of our products are Made in Italy. CERTIFICATIONS: BRC (Grade A), IFS (higher level), ISO 9001:2008, ISO 22000:2005, ISO 22005:2008, ISO 14001:2004, Reg. CE 1221/2009 EMAS, Reg. CE 834/2007, Kosher and Halal Certifications

BOOTH # F1707 Farmo Viale E. Mattei, 1 20010 - Casorezzo (MI), Italy Tel. +39 029 029231 Fax +39 029 0296334 www.farmo.com E-mail: export@farmo.com Contact: Andrea F. Giai FARMO Gluten Free Manufacturer: totally dedicated gluten free manufacturing facilities in the areas of Pasta (varied shapes and premium ingredients: Brown Rice, Lentils, Beans, Amaranth, Quinoa, Buckwheat, Couliflower, Chickpea), Ready Meals (gluten-free brown rice pasta and dehydrated sauce), Baking Mixes and Bakery products. CERTIFICATIONS: BRC, IFS, GFCP/GFCO, ORGANIC, KOSHER, GMO FREE

BOOTH # F1803 16 Show_Directory_PLMA_2017.indd 16 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:19 PM

Fattorie Garofalo Via S. Maria Capua Vetere, 121 81043 – Capua (CE), Italy Tel. +39 0823 620044 Fax +39 0823 968 747 www.fattoriegarofalo.it E-mail: commerciale@fattoriegarofalo.it Contact: Mario Pietroluongo Buffalo mozzarella dop, buffalo burrata, butter, ricotta and mascarpone CERTIFICATIONS: BRC, IFS, ISO 9001, ISO 14001

Firma Italia Via Pavia, 38/40 20835 - Muggiò (MB), Italy Tel. +39 039 2780485 Fax +39 039 2782139 www.firmaitalia.it E-mail: info@firmaitalia.it Contact: Marcantonio Varinelli Shelf Stable, dehydrated ready to cook meals, Italian specialties: pasta with sauce, Italian risotto, dry sauces, dry soups, tortellini with sauce, gnocchi with sauce, lasagne; flavored mash potatoes, flavored polenta, seasoned rice, flavored cous cous, flavored quinoa; ethnic Food. Gluten free meals CERTIFICATIONS: BRC, IFS

ITALY AT PLMA 2017 — www.italianprivatelabel.com

BOOTH # F1839

BOOTH # F1840 17 Show_Directory_PLMA_2017.indd 17 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:20 PM

Fudex Via Reisera 17 10036 Settimo - Torinese (TO), Italy Tel. +39 011 8977834 Fax +39 011 8977842 www.fudex.com E-mail: export@fudex.com Contact: Alessandro Bondesan

ITALY AT PLMA 2017 — www.italianprivatelabel.com

With more than thirty years’ experience in the manufacturing of products such as healthy cereal snacks, crackers, cereal bars, breakfast cereals, baby food, toddler’s snacks, gluten-free food, and organic food, Fudex is the right partner for innovative, healthy and natural products under its customers’ brands. Versatility - Quality Flexibility - Innovation: these are our key-words. CERTIFICATIONS: BRC, IFS, Q

BOOTH # F1740 G7 Via Luciano Romagnoli, 19 40010 - Bentivoglio (BO), Italy Tel. +39 051 6640144 Fax +39 051 6640518 www.g7gelati.it E-mail: export@g7gelati.it Contact: Claudia Cordenos An Italian family company established in 1958 and based in Bologna, that produces Authentic Italian Gelato: 100% Clean-label Gelato, Organic Gelato in an exclusive 100% renewable and compostable packaging, Vegan Gelato, Halal Gelato and Lactose-Free Sorbets for retail and HO.RE.CA. Our Gelato Tubs are HAND-FILLED and HAND-DECORATED. CERTIFICATIONS: ISO 9001, FSSC- ISO 22000, IFS HL, ISO 22005, HALAL

BOOTH # F1820 18 Show_Directory_PLMA_2017.indd 18 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:21 PM

Ghigi Food Industries 10521 Crestwood Drive Manassas, VA 20108 Tel. (703) 392-3744 Fax (866) 931-5486 www.ghigiusa.com E-mail: customerservice@ghigiusa.com Contact: Lino Laudiero

CERTIFICATIONS: BRC, IFS, Organic, Kosher

BOOTH # F1816 GRAMM Via Teologo Valente 70032 - Palombaio (BA), Italy Tel. +39 080 3735950 Fax +39 080 3738273 www.casamilo.it E-mail: export@gruppomilo.it Contact: Peppino Milo Family run company devoted to production of high quality bakery snacks and premium artisanal pasta. CERTIFICATIONS: BRC, IFS, ISO, Kosher

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

GHIGI is an Italian Pasta and Tomato producer located in Northern Italy with a full range of production and logistics capabilities across each segment. We focus on private label programs for the retail and foodservice sectors throughout the Americas. 100% Italian wheat, 100% Non-GMO, Organic.

BOOTH # F1735 19 Show_Directory_PLMA_2017.indd 19 ItalTrade_temp.indd 1

10/27/17 5:16 PM 10/31/17 5:21 PM

Gruppo FINI Via Confine, 1583 41017 - Ravarino (MO), Italy Tel. +39 059 259111 Fax +39 059 259255 www.nonsolobuono.com E-mail: infofini@finimodena.it Contact: Enrico Maria de Franceschi

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

High quality fresh egg filled pasta, gnocchi, fish carpaccios and shelf-stable products (sauces, vegetables, pulses and jams) all gluten-free and with a range of organic items available. All products are made accordingly to Italian tradition, from Italian and natural ingredients. CERTIFICATIONS: IFS, BRC, ORGANIC, KOSHER

BOOTH # F1736 Il Vecchio Forno Via Oltre Agno, 7 36070 - Brogliano (VI), Italy Tel. +39 0445 941588 Fax +39 0445 941218 www.ilvecchioforno.com E-mail: commerciale@ilvecchioforno.com Contact: Giovanni Cristofoletto Leading Italian PL producer of seasonal cakes such as Panettone, Pandoro and Colomba. Additionally, we produce toasted bread slices in various flavors and pack sizes. CERTIFICATIONS: BRC and IFS

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La Rocca Via Colle Gorgone, 84 04010 - Rocca Massima (LT), Italy Tel. +39 06 966 4689 www.olivelarocca.it E-mail: info@olivelarocca.it Contact: Andrea del Ferraro

CERTIFICATIONS: ISO, BRC, BIO, OU Kosher

BOOTH # F1724 Mancuso Vincenzo & C. Contrada San Benedetto S.N. 92021 - Aragona (AG), Italy Tel. +39 0922 441641 Fax +39 0922 441852 www.mancusogelati.it E-mail: info@mancusogelati.it Contact: Luca Parla The Mancuso Family has been making gelato since 1950, when its founder, Vincenzo Mancuso staretd his first company for the production of gelato. Attention to quality is fundamental to us.The best selling products of the Mancuso’s range are: truffles gelato and gelato products in glass jars, glass cups, plastic jar and flutes. CERTIFICATIONS: IFS, BRC, BIO

ITALY AT PLMA 2017 — www.italianprivatelabel.com

Producing olives for over 50 years. We specialize in the production of Italian olives, both for the Retail and Food Service markets: Castelvetrano and other Sicilian olives, Cerignola, Itrana and Gaeta, Leccino.

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Medys Via Falzarego 27 20021 - Baranzate (MI), Italy Tel. +39 02 3834511 www.mitaly.eu E-mail: info@mitaly.eu Contact: Mauro Giordano

M1TALY M1TALY coffee &

b e v e r a g e

coffee &

b e v e r a g e

ITALY AT PLMA 2017 â&#x20AC;&#x201D; www.italianprivatelabel.com

COFFEE & BEVERAGE CAPSULES - INTEGRATED CUSTOMIZED SYSTEM: Our consolidated know how in R&D, electromechanical, plastics and coffee Technologies allow us to design and manufacture high quality machines and technologically advanced capsules for the coffee & bevarage industries for private label partnership. CERTIFICATIONS: ISO9001, ISO14001, ISO22000, IFS, BIRS, Vincotte Composte (Nespresso capsule)

BOOTH # F1705 Montalbano Industria Agricola Via Gerbamaggio 14 51035 - Lamporecchio (PT), Italy Tel. +39 0573 80041 Fax +39 0573 803607 www.montalbanofood.com E-mail: umberta@montalbanofood.com Contact: Umberta Oriana

gustoparty

montalbano

Since 1965, Montalbano has been producing Italian Appetizers, Pesto and Bruschetta Sauces, Olives, Vegetables in oil, Grilled Vegetables, Artichokes, Sundried Tomatoes, Conventional, USDA Organic and Vegan. CERTIFICATIONS: BRC, IFS, ISO 9001, ICEA (Organic), BS OHSAS (health and safety), Vegan OK, FDA approved

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Nuova Industria Biscotti Crich Via A. De Gasperi, 11 31050 - Zenson Di Piave (TV), Italy Tel. +39 042 1344203 Fax +39 042 1344616 www.crich.it E-mail: nuovacrich@crich.it Contact: Enrica Ceccon Production of cookies, cookies for babies, crackers, and wafers. Our products are gluten free, sugar free, organic, and free from milk and eggs.

BOOTH # F1822 Oleificio Ranieri Via Vittorini, 7 06012 - Città di Castello (PG), Italy Tel. +39 075 8510039 • Fax +39 075 8512543 www.olioranieri.com E-mail: export@olioranieri.com Contact: Francesco Fiorucci OLIO RANIERI is an ITALIAN Historical Company since 1711, BRC, ISO, IFS certified. Our specialization is the tailored production (as PRIVATE LABEL or Ranieri brand) of selected quality and finest Olive Oils, Condiments & Special Seed Oils for the most important INTERNATIONAL RETAILERS: • EXTRA VIRGIN OLIVE OILS: (100%ITALIAN, ORGANIC, UNFILTERED Grezzo, Mediterranean, PDO-Umbria, PGI-Calabria, Monocultivar & Single Variety / SINGLE SOURCE) • SPECIAL HEALTHY WELLNESS SEED OILS: (Avocado, Argan, Walnut, Flaxseed, Sesame, Grapeseed, Hemp, Pumpkin, Peanut, Sunflower, Corn, Ricebran, Soybean, Canola, Inca Inchi, Sacha Inchi, Moringa, Baobab, Coconut, Perilla, Pistachio, Almond, Hazelnut, Ground Nut, Brazilian Nut, Apricot, Macadamia, Jojoba, Chia) • FLAVORED OLIVE OILS/DIPPING OILS: (WHITE TRUFFLE, BLACK TRUFFLE -with natural aromas-, Garlic, Chili Pepper, Lemon, Basil, Garlic-Chili, Porcini Mushrooms, Rosemary, Aromatic Herbs, Sage, Fennel, Thyme, Mint, Oregano, Laurel, Ginger, Cinnamon, Turmeric, Saffron, Orange, Mandarin, Vinaigrette, Onion, Tomato, Pizza, PESTO, PARMESAN CHEESE, CURRY, WASABI) • BABY OIL: With Vitamins (A,E,D,B6) & OMEGA 3-6

BOOTH # F1738

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CERTIFICATIONS: BRC, IFS, ISO 9001, USDA NOP, CCPB Organic, Jas, Wit, Friend of the Earth, Zero Waste, Italian Health Ministry Authorization for production and packing of baby food.

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: ISO 9001:2008, B.R.C. version 7, IFS version 6, Organic, Vegan, Kosher, Halal

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Oleificio Zucchi Via Acquaviva 12 26100 – Cremona (CR), Italy Tel. +39 0372 53211 • Fax +39 0372 491895 www.zucchi.com E-mail: rp@oleificiozucchi.com Contact: Marco Bonati

ITALY AT PLMA 2017 — www.italianprivatelabel.com

Since 1810 Oleificio Zucchi has always produced high quality products covering the entire range of olive and seed oils, both for the retail and Foodservice channel, available in a wide assortment of varieties and sizes. The olive oil offering comprises: extra virgin, extra virgin 100% Italian, organic extra virgin, olive, olive pomace oil and flavored oils. The seed oils include groundnut, sunflower, corn, soy, grapeseed, rapeseed, mixed seed, palm and oil for frying. CERTIFICATIONS: UNI EN ISO 9001, UNI EN ISO 14001, DTP030 gmo Free Corn and Soy, BRC IFS, SA800 - BS OHSAS18001, RSPO certified sustainable Palm Oil, DTP 112 Seed Oil Traceability and Sustainability, DTP 125 Olive Oil Traceability and Sustainability

BOOTH # F1831 Pedon Via del Progresso,32 36060 - Molvena (VI), Italy Tel. +39 0424 411125 • Fax +39 0424 411118 www.pedon.it E-mail: info@pedon.it Contact: Paolo Pedon Pedon is a well-established European company processing, packing and distributing grains, pulses and seeds. Pedon is present in all sales channels either with ownbrand products or as private labels in the grocery chains with more than 100 lines corresponding to over 2500 items. The main products are grains, pulses and seeds, conventional and organic, traditional and fast cooking time; additional products are gluten-free, preparations for cakes and baked goods. CERTIFICATIONS: BRC, IFS, USDA Organic, Bio, Kosher, Vegan Ok, EAC, Gluten Free Certification Program Beyond Celiac, Gluten Free Canadian Celiac Association, NON-GMO Project Verified

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Roncadin 1101 Perimeter Dr, Suite 760 60173 Schaumburg, IL Tel. (312) 647-3895 www.roncadin.it E-mail: alessio.lucchese@roncadin.it Contact: Alessio Lucchese Original Italian wood-fired and stone-baked pizzas and snacks (frozen) CERTIFICATIONS: BRC, IFS

S.I.A. Società Italiana Alimenti Via Palmiro Togliatti, 20 63073 – Offida (AP), Italy Tel. +39 0736 888005 Fax +39 0736 889748 www.societaitalianaalimenti.it E-mail: info@siaspa.it Contact: Maurizio Speca Italy’s leading private label frozen food producer of premium, Italian pasta and sauce meals, seafood specialties and finger food. Amazing restaurant-quality, convenient, on trend meals made with simple, real ingredients, that are ready to eat in minutes. S.I.A. opened a U.S. branch office in 2016 with products warehoused in the U.S. to better serve the U.S. market and support growth. CERTIFICATIONS: IFS (Higher level), BRC (Grade AA), FSSC 22000

ITALY AT PLMA 2017 — www.italianprivatelabel.com

BOOTH # F1711

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Saor Italia Contrada Palma 89042 Gioiosa Ionica (RC), Italy Tel. +39 011 9211444 Fax +39 011 9210089 www.saorsrl.com E-mail: sales@saorsrl.com Contact: Arturo Palladino

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A family run business, established in 1985. Our factory is located in Southern Italy, with close connections to local farmers. Tradition goes together with high technical standards. We produce sauces, antipasti, soups, bruschetta toppings, marmalades from fresh selected ingredients. CERTIFICATIONS: BRC GRADE AA, IFS Higher Level, HALAL, BIO e UNI EN ISO 9001: 2008

BOOTH # F1830 Surmont Via Cal Lusent, 71 31040 - Pederobba (TV), Italy Tel. +39 0423 681981 Fax +39 0423 681982 www.surmont.it E-mail: k.carlesso@surmont.it Contact: Katia Carlesso IQF Frozen Value Added Ready Meals such as: authentic Italian Risotto and Pasta, Spiralized Veggies, Ready Soups and Side dishes, Organic/Vegetarian/Vegan products, Superfoods/Healthy Complete Meals, Multigrains and Veggies Blend. Real Home-made like meals, Flash Freezing Nitrogen Technic CERTIFICATIONS: IFS (higher level), BRC (AA), ORGANIC, FDA, ISO 22005, ISO 9001

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Tedesco Via dell’Innovazione Tecnologica 06015 - Pierantonio (PG), Italy Tel. +39 075 506771 Fax +39 075 5009041 www.tedescogroup.it E-mail: luca.ceriani@tedescogroup.it Contact: Luca Ceriani Tedesco Group is an Italian food producer which exports to over 40 countries worldwide. Tedesco can satisfy different requests thanks to the possibility to offer a great variety of packaging and size of: cookies, panettoni, cantuccini, croissants, and more. All certificates IFS/BRC.

BOOTH # F1807 Topan Via del Lavoro, 21 31050 - Vedelago (TV), Italy Tel. +39 0423 401325 Fax +39 0423 709280 www.topan.it E-mail: sales@topan.it Contact: Alberto Topan Value-added frozen products from Italy, including: risottos, grain salads, vegetable medleys, soups, sauces, pasta based ready meals, vegan, vegetarian & super-foods, gourmet stuffed polentas, salads & desserts. CERTIFICATIONS: IFS, ISO 9001, ISO 14001, ISO 22000, OHSAS 18001, WSF, ACN-ANSI Network

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: IFS, BRC, BIO

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Valpizza Via Sbiffia, 97 40053 - Valsamoggia (BO), Italy Tel. +39 051 670 5080 Fax +39 051 670 5250 www.valpizza.it E-mail: info@valpizza.it Contact: Matteo Manzini Pizza Bases, Topped Pizzas, Pizza Snacks, hand kneading and topping.

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: BRC, IFS, JAS, ORGANIC, VEGAN OK, HALAL, KOSHER

BOOTH # F1739 Zini Prodotti Alimentari Via Libertà, 36 20090 - Cesano Boscone (MI), Italy Tel. +39 02 4583546 Fax +39 02 48600682 www.pastazini.it E-mail: ae@pastazini.it Contact: Arianna Errante Details, quality and passion: these ingredients allow Zini turning every-day pasta dishes into masterpieces, aimed at promoting Made in Italy worldwide. Zini offers both a full range of fresh frozen pasta (filled and plain), gnocchi, rice, polenta, sauces and a wide organic, kosher, gluten free and halal selection. CERTIFICATIONS: BRC, IFS, BIO/ORGANIC, HALAL, KOSHER, GLUTEN FREE

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CB STAMPI Via Artigianato, 34/38 36031 Povolaro di Dueville (VI), Italy Tel. +39 0444 361111 Fax +39 0444 361103 www.cbstampi.it www.cbcaps.com E-mail: a.mazzoleni@cbstampi.it Contact: Angela Mazzoleni

CERTIFICATIONS: ISO9001

BOOTH # H2104 Chemical Flacer Località Bellaria 31A 40036 Vado (BO), Italy Tel. + 39 051 6778202 Fax + 39 051 6776252 E-mail: info@flacer.com Contact: Matteo Ceri We manufacture detergent tablets for dishwashers, lime scale tablets, and water softeners salt tablets for household care and professional use.

ITALY AT PLMA 2017 — www.italianprivatelabel.com

Closure with patented snap on fit for PCO, 28/410, 29/21, pet neck finish; range of flip top 24/410 and 24/415 screw on caps; development for customized products. We utilize only top quality materials to produce closure systems (caps) snap-on and screw system, in respect of food safety certification. Our “caps” are available for various applications, in different colors, materials, neck type, dispensing hole and color.

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CSC Via della Meccanica 1 41018 – San Cesario S.P. (MO), Italy Tel. +39 338 7125376 www.csc-italy.com E-mail: n.santangelo@csc-italy.com Contact: Nicola Santangelo Located in the city of Modena since 1963, we are one of the most important Italian manufacturer of brooms, brushes and lint rollers. CERTIFICATIONS: ISO 9001, SA 8000

ITALY AT PLMA 2017 — www.italianprivatelabel.com

BOOTH # H1901 Eco Pets Italia Via Massena, 12/7 20145 – Milano (MI), Italy Tel. +39 348 2628119 Fax +39 0543 20032 www.ecopetsint.com E-mail: ecopetsitalia@gmail.com Contact: Dario Piazzi Cateko The Eco Cat litter is a Totally Green Product. It’s produced in 2 different variants, a-Plant Fiber, b-Recycled Clean Paper. It’s Clumping, 100% Biodegradable, Certified Antibacterial, low dust and with the lowest carbon footprint in the category. CERTIFICATIONS: Antibacterial Effect certified by Veterinary Faculty of Torino University - SDS certification

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ICC ITALY Via Beethoven, 20 26817 - San Martino in Strada (LO), Italy Tel. +39 0371 779400 Fax +39 0371 779420 www.icc-italy.com E-mail: info@icc-italy.com Contact: Anna Pace The unique nail polish and nail care manufacturer from raw materials in Italy. The production includes suspending bases, colored bases, nail polish, removers, soak off nail polish and nail care, sold in bulk, semi-finished or finished product.

BOOTH # H1902 NOTES

ITALY AT PLMA 2017 — www.italianprivatelabel.com

CERTIFICATIONS: UNI EN ISO 9001:2008 - Quality Management System, UNI EN ISO 14001:2004, ISO 22716:2007 – GMP SMETA report, UNI EN ISO 18001: 2007

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The Italian Trade Agency at PLMA 2017 The Italian Trade Agency (ITA) is the government organization which promotes the internationalization of Italian companies, in line with the strategies of the Ministry for Economic Development. The ITA provides information, support and advice to Italian and foreign companies. In addition to its headquarters in Rome, the ITA operates worldwide from a large network of offices linked to Italian embassies and consulates, working closely with local authorities and businesses.

Chicago Office ITA – ITALIAN TRADE AGENCY 401 N. Michigan Avenue, Suite 1720 Chicago, Illinois 60611 – 4257 Tel: (312) 670 – 4360 / Fax: (312) 670 – 5147 chicago@ice.it www.italtrade.com/usa ICE — Agenzia per la promozione all’estero e l’internazionalizzazione delle imprese Italiane Via Liszt, 21 – 00144 Roma, Italy Email: privatelabel@ice.it Discover Italian exhibitors at: www.italianprivatelabel.com

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