SB-0623

THE PULSE OF PRIVATE LABEL

MAY/JUNE 2023

INSIDE

TOP INDEPENDENTS P. 24

This Year’s 16 Honorees Drive Innovation Across the Private Label Industry P8

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THE STORE BRANDS PHENOMENON

They have many names: Store brands, private label, retailer brands, own brands. Hailed as dynamic, innovative and pervasive, they’re a $230 billion a year industry that offers boundless opportunities for suppliers and retailers. They expand every day into new categories, chains, channels, platforms. By whatever name, one word describes them best: Phenomenon. To experience them in Chicago, contact PLMA at +1 212 972-3131 or email info@plma.com or visit www.plma.com.

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VOLUME 46 NO.3

TOP

INDEPENDENTS 24 Top Independents Local grocers meet a growing demand for private brands

28 Snacks

As prices rise, consumers alter buying habits

COVER STORY

This Year’s 16 Honorees Drive Innovation Across the Private Label Industry

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Dairy

Plant-based competition drives dairy innovation

33 Paper Products Editor’s Note

Suppliers focused on sustainability

Store Brands (ISSN-0190-9851; USPS # 0488-370) is published monthly, except January, March, May, July and September by EnsembleIQ, 8550 W. Bryn Mawr, Suite 200, Chicago, IL 60631. Subscriptions: One year, $100; two years, $182. One year, Canada $118; two years, $215 One year, foreign $135; two years, $225. One year, digital $70; two year, $130.Single copies $14 US, Canada & foreign $16. Payable in advance with a bank draft drawn on a US bank in US funds.Single copies $20. Foreign, $85. Canada Post: Canada returns to be sent to IDS, P.O. Box 456, Niagara Falls, ON, L2E6V2. Periodicals postage rates paid at Chicago, IL and additional mailing offices. Printed in USA. POSTMASTER: send all address changes to Store Brands PO Box 3200 Northbrook, IL 60065-3200. Copyright 2023 by EnsembleIQ. All rights reserved, including the rights to reproduce in whole or in part. All letters to the editors of this magazine will be treated as having been submitted for publication. The magazine reserves the right to edit and abridge them. The publication is available in microform from University Microfilms International, 300 North Zeeb Road, Ann Arbor, MI, 48106. The contents of this publication can not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for claims and representations.

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Store Brands ● May/June 2023 ● www.storebrands.com

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MAINTAINING MOMENTUM INNOVATION DROVE PRIVATE BRAND GROWTH DURING THE FIRST HALF OF THE YEAR. LET’S KEEP IT GOING! Welcome to June and the midway point of 2023.

The first half of the year has been another exciting period for private brands and the momentum from 2022 has carried forward.

There comes a point in the retail/consumer goods world when a trend ceases being a trend and becomes a way of doing business. This feels like the case for private brands.

We started the year with retailers talking about opportunity. The opportunity to expand private brand assortments, not only in existing categories, but identifying and taking advantage of opportunities seen in non-consumable categories.

Natural Grocers expanded its private brands selection with a new line of bath salts and foot soaks.

Williams-Sonoma launched its Green Row home goods line with products made from sustainable manufacturing practices. Sam’s Club will soon offer its shoppers a line of apparel under its Member’s Mark brand, which was revealed on the Store Brands Spotlight podcast by Myron Frazier, senior vice president of Private Brands and Sourcing at the retailer.

Additionally, a number of retailers started the year telling Store Brands of their intent to boost their consumer marketing efforts behind their private brands in an effort to highlight the quality and value their products provide consumers. Retailers including Kroger and Whole Foods among others have made good on this promise and are working to position their own brands as national brands.

It appears all this activity has caught the attention of the national brand conglomerates who spent the past couple of years dismissing – at least publicly – the growth of private brands.

A survey conducted in March by Advantage Solutions revealed that only 28% of product manufacturers said they plan list price increases over the next six months.

In December, that number was 46%. Additionally, 35% in March said they will not increase prices, up from 28% just four months earlier.

Clearly, the branded side of the consumer products world is coming to grips with the power of private brands, which really is the power of consumers who are speaking with their wallets. Whether out of necessity or just tired of overpaying for products, shoppers have discovered private brand items that equal if not exceed their branded counterparts.

The proverbial tree has been shaken. Ongoing innovation will further drive growth and continue to push the market share toward private brands. Keep up the good work!

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BRAND MANAGEMENT Senior Vice President and Group Publisher Paula Lashinsky 917.446.4117 | plashinsky@ensembleiq.com

EDITORIAL Associate Publisher/ Executive Editor Greg Sleter gsleter@ensembleiq.com Associate Editor Zachary Russell zrussell@ensembleiq.com

ADVERTISING SALES & BUSINESS National Sales Manager Natalie Filster 917.690.3245 | nfilster@ensembleiq.com

DESIGN/PRODUCTION/MARKETING Senior Creative Director Colette Magliaro cmagliaro@ensembleiq.com Designer Jyoti Patiyar jpatiyar@ensembleiq.com Production Manager Patricia Wisser pwisser@ensembleiq.com Marketing Manager Rebecca Welsby rwelsby@ensembleiq.com

SUBSCRIPTION SERVICES List Rental mbriganti@anteriad.com Subscription Questions contact@storebrands.com

Chief Executive Officer Jennifer Litterick Chief Financial Officer Jane Volland Chief People Officer Ann Jadown Chief Strategy Officer, Joe Territo Chief Operating Officer Derek Estey

The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations.

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Store Brands ● May/June 2023 ● www.storebrands.com

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Honorees in the Private Label Hall of Fame’s Class of 2023 each have an unquenchable desire to drive the industry forward

BY GREG SLETER AND ZACHARY RUSSELL

Sixteen leaders from the world of private brands were recently honored as the newest inductees to the Private Label Hall of Fame. During a ceremony held during the Private Label Manufacturers Association’s (PLMA) Annual Meeting & Leadership Conference in Orlando, Fla., members of the Class of 2023 shared stories of the challenges each has overcome to succeed in a highly competitive industry.

Created in 2006 to recognize those who have made significant contributions to the growth and development of the global private brand industry, this year’s event featured updated categories that each included two retail and two supplier honorees. The categories are Next Gen Private Label Leader, Private Brand Innovator, Private Brand Champion

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and Lifetime Achievement.

“We proudly celebrate the outstanding achievements of these proven leaders and innovators,” said Peggy Davies, president of PLMA. “Their hard work and dedication are instrumental to the success of the store brands business.”

“The 16 honorees represent the best of the best from across the world of private label and showcase the depth of talent the industry has to offer,” said Greg Sleter, executive editor and associate publisher of Store Brands. “This august group of retailers and suppliers have had a major impact on the private label business and will continue to do so in the years ahead.”

This special section features profiles of each of the new Hall of Famers.

Store Brands ●● May/June 2023 ●● www.storebrands.com

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Lifetime Achievement ANDY RUSSICK VP of Sales & Marketing Pacific Coast Producers

In his 35-year career, Andy Russick has played a major role in the development, expansion and improvement of canned fruit and tomato private label programs in grocery and foodservice. Through his innovative leadership, Pacific Coast Producers (PCP) went from a small copacker to a premier produce company that has reached $1 billion in sales.

One of Russick’s achievements includes being an innovator in fruit bowl growth. What is now a staple in kids’ lunches across America started as a small co-pack agreement between Dole and Pacific Coast Producers. After Dole moved production overseas, Russick built a private brand program in support of the American farmer that is now in most grocery stores and school cafeterias. He also pushed for non-BPA packaging for these products before many regulations were in place.

Russick said that this initiative, like others, was especially important to him because of the initial lack of reception.

“Time has proven that we were right to market both lines of products and what was once a belittled notion by many are now ‘must-haves’ in virtually every grocery store and alternative format from coast-to-coast,” he said.

“My good friend and fellow sales manager, Linton Hall, would frequently tell me and the rest of our team that we should never consider any negative feedback as rejection, but rather we should realize that we are simply 19 or 20 no’s closer to a yes.”

One of Russick’s other accomplishments includes effectively applying for Specialty Crop grants from the United States Department of Agriculture (USDA). The first grant PCP received was for launching a new product, and

“My goal for the rest of my career will be to make sure that the PCP team continues improving every year and that our customers more thoroughly appreciate our value, knowledge, quality, relevance and professionalism.”

— Andy Russick, Pacific Coast Producers

a subsequent grant was to expand markets for another product. Russick proposed a grant simply for marketing fruits, and prior to his initiative, private brand manufacturers did not consider themselves eligible for a government marketing grant.

Russick insisted that it was up to PCP to become the advocate for canned fruits and tomatoes generally, and especially for the private label segment. PCP was awarded the grant, and this was the formal launch of the company’s marketing efforts.

Looking ahead, Russick looks to continue PCP’s growth, with new product launches on the horizon, including Californiagrown Mandarin orange canned and bowl line along with a foodservice and retail apple and applesauce line.

“My goal for the rest of my career will be to make sure that the PCP team continues improving every year and that our customers more thoroughly appreciate our value, knowledge, quality, relevance and professionalism,” said Russick.

JILL SANDO

EVP and Chief Merchandising Officer Target As the chief merchandising officer for one of America’s most popular private label assortments, Target’s Jill Sando oversees the retailer’s five merchandising categories including apparel and accessories, beauty and essentials, and home and hardlines. During her time with the company, Sando’s leadership has led to a fan-favorite collection of own brands that help differentiate Target from other retailers.

Sando’s team credits her keen eye for

www.storebrands.com ● May/June 2023 ● Store Brands

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“My goal going forward is to continue encouraging my team to dream bigger and achieve more to help elevate the next generation of Target merchandising.”

— Jill Sando, Target

trends, curation and anticipation of guests’ needs as keys to her success. Sando herself said that her passion for retail and merchandising started when she was young.

“I grew up in retail,” said Sando. “My mother owned a small kitchen boutique, so I became familiar with the industry early in my life. I have always loved analytics and problemsolving – and I loved art and fashion, too. I feel so fortunate because I was able to do the best problem-solving by finding a profession firmly rooted in my areas of passion.”

Target has leaned into private label in the past few years, launching several new owned brands including the latest brand, Future Collective.

This innovative apparel and accessories owned brand features collections in partnership with a rotating roster of style and cultural influencers, with the newest partner, stylist Gabriella KarefaJohnson, being part of Target’s Racial Equity Action and Change (REACH) initiative.

Other notable brand releases include Target’s Mondo Llama arts and crafts brand, as well introduction of sensory-friendly and adaptive pieces across owned brands such as Cat & Jack, Universal Thread and Hyde & EEK! Boutique, embodying Target’s “design for all” ethos. These inventive new offerings, paired with the retailer’s ever-growing food and beverage catalog, have helped Target’s own brand portfolio reach $30 billion.

In addition to overseeing new product releases, Sando played a pivotal role in the introduction of the Target Zero initiative that responded to growing guest interest in products that help reduce waste. Supporting Target’s sustainability strategy, Target Forward, Target Zero has included several products from the retailer’s private brands.

“My goal going forward is to continue

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encouraging my team to dream bigger and achieve more to help elevate the next generation of Target merchandising,” said Sando. “I want to build up the next generation of merchants and help them to become the best they can be. I am also extremely focused on continuing to identify opportunities to reinforce Target’s values within our strategy, driving progress around Target Forward and our REACH commitments, to co-create an equitable and regenerative future together with our guests, partners and communities.”

BRENDA LORD VP of Private Brands CVS Health

In her long and tenured career, Brenda Lord, VP of Private Brands at CVS Health, has spent the majority of her work in retail building brands. From strategy to sourcing, design and marketing, Lord From strategy has had a knack for creating unique and private brands. to sourcing, innovative She began her career as a buyer for design and Ames Department stores, then worked marketing, for Staples, Test Rite Products and now Brenda Lord CVS Health. She has built brands, led has been large teams and driven large portfolios lauded for her from top-to-bottom with continued Since joining CVS Health in talent for success.

2018, Lord has led the growth of the creating unique chain’s Our Brands division, and is now and innovative responsible for the chain’s $5 billion private brands. store brand portfolio.

One of Lord’s major and more recent achievements was the partnership and launch of the CVS Health by Michael Graves Design collection, which in February of 2022 brought innovation and a customer-first mindset to the market. Offering supportive care without compromise, the collection of comfort grip canes, easy-fold travel walkers, convertible shower chairs and more help give customers simple, customizable and ergonomic tools to live and move in comfort. The line was awarded an Innovation By Design citation by Fast Company magazine.

While innovating and elevating CVS’ private brands, she also nourished her family, friends and faith as a long-term Girl Scout troop leader and active member of her community. Known for her customerfirst approach, Lord has led teams to make innovative moves and has provided an environment that encourages her team to be bold and fearless, according to members of her CVS team.

She pushes teams to deliver more, aim higher and not be afraid to take risks or imagine the impossible. Given the pharmacy chain’s success, it’s easy to see why Lord is included in this year’s Private Label Hall of Fame class.

Store Brands ● May/June 2023 ● www.storebrands.com

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Visit us at www.ragozzino.com

Congratulations to our president, Nancy Ragozzino, a 2023 PLMA Hall of Fame inductee!

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NANCY RAGOZZINO President Ragozzino Foods

Having been involved with her family’s Connecticut-based frozen entree business for 40 years, Nancy Ragozzino has held several positions at Ragozzino Foods before taking over as president of the private label supplier in 2014.

“I always knew I wanted to work at the family business, but started my career as national accounts for restaurant chains, but in order to diversify our portfolio we moved into the retail arena,” said Ragozzino. “I love both segments of the business.”

With experience in research & development and quality assurance under her belt, Ragozzino now serves as president and as the only salesperson for a business that produces private label products for notable retailers such as Walmart, H-E-B, Publix and Wegmans.

Ragozzino has also used her network to create relationships with several celebrities to help them bring their ideas to life. Starting with R&B icon Patti Labelle’s line of frozen foods, her passion and commitment turned into a stream of clients by celebrities, agents and buyers who know her as the one who can deliver quality products.

As a hands-on leader, she starts her days ensuring the manufacturing plant gets running on

“I owe all my success to my many loyal customers and employees. Ragozzino Foods is grateful for both and would not be where we are without either.”

— Nancy Ragozzino, Ragozzino Foods

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a high note, and then bounces throughout the building ensuring all her teams are firing on all cylinders, knowing the most complex details about every aspect of the business.

Looking ahead, Ragozzino said she has no plans of retiring soon, and looks to continue growing the family business, leading by example for the company’s employees.

“I owe all my success to my many loyal customers and employees.

Ragozzino Foods is grateful for both and would not be where we are without either,” said Ragozzino. “We have received several awards over the years and it’s such a great feeling being recognized as going above and beyond, where in the end I am just doing my job. My personal goals are to be able to teach the next generation what I have learned over the years.”

ANDREA COLLARO Senior Director, Owned Brands Walgreens

With oversight of more than a dozen private brands that encompass more than 4,500 items, the product development efforts at Walgreens led by Andrea Collaro have touched consumers across the U.S. and earned her recognition as a 2023 Private Label Hall of Fame honoree in the Private Brand Champion category.

Starting her professional career as a pharmacist, she would often recommend private brand products to customers, understanding each product’s equivalency to national brands, their efficacy and the value they offered.

“Originally, I wanted to be a lawyer,” she said. “Working for my brother Ben (who is also a pharmacist) as his pharmacy technician is how I became interested in pharmacy. The first day on the job I loved it and switched my focus to being a pharmacist.”

Collaro also points to her brother as the person who had the greatest influence on her career.

“My approach to taking care of consumers is emulated off of how he interacted with patients,” she said. “He remembered everyone’s name and their story and treated everyone with respect. I loved that approach and to this day I do the same.”

Her experience as a pharmacist put her on path for success at Walgreens.

Today, Collaro spearheads product development across several divisions including health & wellness, beauty, personal care, grocery & household, and seasonal & general merchandise.

The success she has enjoyed stems largely from Collaro being a lifelong learner who is willing to take chances and reach beyond her comfort zone.

Store Brands ● May/June 2023 ● www.storebrands.com

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“Regardless of what role I am in, the goal will be to develop products and services that meet and exceed the needs of our consumers.”

— Andrea Collaro, Walgreens

“This approach has served me well throughout my career,” she said. “I started out as a pharmacist in our stores, first-hand taking care of patients in need. I use that background every day in my job, which guarantees that I put the customer at the heart of what I do.”

With oversight across multiple product categories, Collaro said it’s difficult to pinpoint a specific project that gives her the most pride.

“I have developed a lot of Owned Brand products directly or led teams to do so across platforms of unmet needs,” she said. “The development of our Free & Pure Vitamin and Supplement line as well as our medical device platform are great examples of leading a team of great product development managers.”

As she looks ahead to the next stage of her career, she feels the sky’s the limit.

“My future goals are simple: continue to challenge myself and push into new territories and encourage my team to do the same,” she said. “Regardless of what role I am in, the goal will be to develop products and services that meet and exceed the needs of our consumers. Strong partnerships both internal and external will enable this ambition.”

SHANE BROWN

Director, Own Brand Sourcing Giant Eagle Talk to Shane Brown about private brands and the work he’s done at Giant Eagle, and his passion for the business is quite evident.

A 2023 Private Label Hall of Fame honoree in the Private Brand Champion category, Brown oversees the grocer’s Own Brand sourcing operation. During his tenure at Giant Eagle, he is cited by colleagues as the driving force behind the company’s private label success and expansion of its supplier base. Today, the regional grocery chain has nearly 600 supplier relationships and contracts that contributed to its private brand efforts.

“I love working in the private label industry and I don’t see myself moving away from it anytime soon,” Brown said. “I love working with vendors, and negotiating amazing deals with cost savings to pass along to our customers in the form of amazing deals.”

Those who work closely with Brown talk about the impact he’s had on Giant Eagle’s private label efforts and has been a champion of

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change. He is lauded for providing perspective and guidance to teams across merchandising and finance to help convey the benefits of developing and growing and the company’s private brands program.

Retail, however, was not Brown’s first calling.

His college studies focused on hospitality as he targeted a career in the hotel industry. But advice from a friend changed his career path.

“After I graduated, a friend of mine told me about a grocery store chain that was hiring and thought I should interview,” he said.

“Once I interviewed for Aldi, I knew that it was something I needed to pursue, and I’m glad I made the decision.”

He pointed to his first supervisor, Tom Becek, as the person who had a major impact on his career.

“I was 18 when I started working at (Becek’s) hotel, and he mentored me and gave me so many opportunities for someone my age,” he said. “I was very young when he put me into the Manager Training Program.

Tom really took an interest in my career and for nine years, helped develop my leadership skills. I owe him my entire career.”

The move from hospitality to retail with a spot in Aldi’s Corporate Buying Department led to a memorable moment in Brown’s career.

He was given an opportunity to overhaul and develop the grocer’s assortment of nuts and dried fruit, two categories that at the time were less than familiar to him.

“In the first year, I was able to work with current vendors to develop the entire program,” he said. “I then took the next several years to increase the supplier base to continue to develop the category. I created many valuable partnerships during that time, and I still work with several of those partners today in my new role.”

“I love working with vendors, and negotiating amazing deals with cost savings to pass along to our customers in the form of amazing deals.”

— Shane Brown, Giant Eagle

Store Brands ● May/June 2023 ● www.storebrands.com

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During her tenure, Nicolosi and her team have pushed the idea that private brands can be strategic initiatives and offer superior products that contribute to an exclusive retail experience for consumers in a way national brands cannot.

“If done well, (private brands) can create unique opportunities for retailers to connect with customers, create loyalty, and drive traffic, all the while creating revenue streams that were previously overlooked,” said Nicolosi, a 2023 Private Label Hall of Fame Honoree in the Private Brand Champion category.

KRISTIE NICOLOSI President & CEO The Kingswood Company

Jewelry care may not be the first product category that comes to mind when thinking about private label products. But for nearly 20 years, it has been a passion for Kristie Nicolosi, president & CEO of The Kingswood Company.

“If done well, (private brands) can create unique opportunities for retailers to connect with customers, create loyalty, and drive traffic, all the while creating revenue streams that were previously overlooked.”

— Kristie Nicolosi, The Kingswood Company

Congratulations TO

Colleen Purcell Kangas for her induction into the PLMA 2023 Hall of Fame

PURCELL INTERNATIONAL 800 ELLINWOOD WAY PLEASANT HILL, CA 94523 USA

www.purcell-intl.com

www.storebrands.com ● May/June 2023 ● Store Brands

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Retail and the GPG world were not on her mind early in her career. After graduating college, Nicolosi worked in public accounting and financial services for a decade. That changed in 2005 when she purchased Kingswood.

“I truthfully did not anticipate how challenging and rewarding consumer goods would be,” she said. “It is a complex and global industry, with tremendous opportunity for growth, innovation and excellence.”

Over the following 18 years, Nicolosi had driven Kingswood’s expansion beyond its base of U.S.-based retail jewelers to now include e-commerce channels, direct sales companies, pawn stores, big-box retailers and international retailers and distributors. The company’s products today are distributed on six continents and to more than 12,000 doors worldwide.

She attributed her success to the support received from family, friends, colleagues, mentors, customers and suppliers.

“I have been inspired by my parents, my husband and my daughters, and the many talented people that are on our team, and feel grateful for my health and education as well,” Nicolosi said.

Looking toward the future, Nicolosi said her company is continuing on its path with planning international expansion, development of new products and increased capacity and customization options for its customers.

Additionally, she said her next challenge as a leader and entrepreneur is to further develop the company’s people, processes and technology as key components to reaching a next level of growth.

“As one of our core values, we are investing not just in our company, but in ourselves through increased budgets for training, professional, technical and leadership development,” she said. “We recognize that as our company grows, this creates new opportunities for each of us, and we want to be the company of choice for our team members that want to continue to learn, develop, and grow.”

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JILL CLARK

Vice President, Sales & Marketing Dutch Gold Honey For more than 30 years, Jill Clark has led Dutch Gold Honey’s private brand manufacturing and marketing efforts and formed a host of relationships with key retailers that include leading grocery and warehouse club chains. Additionally, she has also worked with government agencies to protect the domestic honey industry.

A 2022 Private Label Hall of Fame honoree in the Private Brand Champion category, Clark is cited by colleagues for her knowledge and management of regional and national own brand programs. Additionally, she was a leading voice and developer of the True Source honey verification system and worked with several agencies within the federal government to thwart adulterated Chinese honey from coming into the U.S.

“The ownership and management at Dutch Gold also allowed me to step outside of long-standing comfort zones to pursue novel opportunities.”

— Jill Clark, Dutch Gold Honey

Clark admits that a successful career selling private brand honey to many of the nation’s biggest retailers is not something her younger self would have envisioned. But her success and level of expertise she had garnered stems from her personal drive and the support of many around her, which includes her family and co-workers.

“My family has supported me on a daily basis, which was not always easy when my children were younger and I had to travel,” she said. “The ownership and management at Dutch Gold also allowed me to step outside of long-standing comfort zones to pursue novel opportunities. And my colleagues at Dutch Gold teach me something new every day.”

One of her more memorable moments during her time at Dutch Gold was the company’s first honey bear shipper display, which was presented to Jerry Doepker of Kroger some 30 years ago.

“Jerry was willing to go out on a limb, but would only commit to 200 shippers,” she recalled. “Within two to three years, Kroger was selling nearly 10,000 honey bear shippers a year.”

As she looks ahead, Clark is hopeful that the profile of the True Source Honey Certification will continue to grow in the eyes of consumers. Products carrying this certification have passed a voluntary system of traceability and authenticity to show their sourcing practices are in full compliance with U.S. and international trade laws.

“Consumer outreach and education on these matters is not easy, but I will continue to devote my time and energy to these challenges,” she said. “Consumers are purchasing honey because they believe in the product, and I want to make sure their expectations of a pure and wholesome product are met.”

Store Brands ● May/June 2023 ● www.storebrands.com

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ROGER SCOMMEGNA

CEO Flying Blue Imports The private label wine segment continues to grow and as it does, the category will need innovative thinking to grab the attention of consumers who are looking for a quality varietal at a good value.

A 2023 Private Label Hall of Fame honoree in the Private Brand Innovator category, Roger Scommenga, CEO of Flying Blue Imports, is cited as a leader in creating unique approaches to connecting consumers with wines sold under various private brands.

Among the many platitudes he received for his work in the segment, Scommenga

“What has always fascinated me was how the industry is constantly evolving, with new products, trends, and technologies emerging all the time. There is always something new to learn.”

— Roger Scommegna, Flying Blue Imports

Congratulations to our PLMA Winner!

Thank you for all you do for SpartanNash and the communities we serve.

Congratulations to Anthony Cera for being inducted into the Private Label Hall of Fame as one of the Next Generation Private Label Leaders! Anthony has been with SpartanNash for over 13 years and has been pivotal in positioning OwnBrands for growth, including the flagship brand Our Family.

ANTHONY CERA

OwnBrands Manager, Perishables

www.storebrands.com ● May/June 2023 ● Store Brands

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is credited with curating an international collection of wines to create an “adventure” for consumers. This included unique varietals, unexpected regions, and interesting labels, along with a social media campaign to enhance the connection with consumers.

The world of retail/consumer goods caught his eye at a young age as the industry’s constant changes fit well with his personality.

“What has always fascinated me was how the industry is constantly evolving, with new products, trends, and technologies emerging all the time,” he said. “There is always something new to learn. I also love the thought of being able to have a direct impact on consumers by providing goods that people use and enjoy on a daily basis.”

With a Hall of Fame honor now under his belt, Scommenga said there have been a combination of factors that have led to his success.

“Keeping a perpetual focus on creating highquality products that appeal to consumers,” he said.

“My products gained a loyal following by being wellcrafted, unique, and competitively priced. The next important factor would be relationships. Building strong relationships with retailers, distributors, and other industry professionals is crucial.”

He also pointed to his creativity in developing new products and marketing strategies, along with having a strong understanding of business principles as key underpinnings of his success.

While Scommenga has utilized his talents to build a successful career, he said his father – a physician – has a major influence on how he does business today.

“I learned traits and skills from my father and applied them to my own profession,” he said.

“My father had excellent communication skills, which are essential in any sales job. He also had a deep understanding of the importance of building relationships and trust with his patients, which is a trait that I applied to building relationships with my customers. Additionally, his work in the medical field instilled a desire in me to help people.”

And as he moves forward in his career, Scommenga has a few straightforward goals.

“I want to constantly improve my knowledge and skills to stay relevant in a rapidly changing business landscape,” he said. “I also have a desire to create opportunities for others to succeed and I desire to give back to my community and to make a positive impact on the world. I would also like to put a greater priority on my personal life, spending more time with my family and pursuing projects near and dear to my heart.”

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CASEY CREEGAN Manager of Merchandising Love’s Travel Stops Private brands are a growing segment at Love’s Travel Stops, and Casey Creegan, the convenience store chain’s manager of merchandising is credited with developing its proprietary product assortment.

In developing Love’s current four own brands in stores today, Creegan led the charge in all aspects of the business inclusive of new branding strategies and creating a self-distribution model with the company’s in-house sourcing team.

As a 2023 Private Label Hall of Fame honoree in the Private Brand Innovator category, Creegan said she was “incredibly honored and excited” to receive the award.

“Love’s culture is a big part of the success that I’ve had. They allow you to be innovative and to fail brilliantly, which is the best way to learn.”

— Casey Creegan, Love’s Travel Stops

“Love’s culture is a big part of the success that I’ve had,” she said. “They allow you to be innovative and to fail brilliantly, which is the best way to learn. I have had a lot of creative freedom and a ton of internal support.”

Creegan has spent most of her professional career in the retail/consumer goods industry, which she finds exciting and challenging as things typically move fast.

“I have also built up a lot of industry partners, and friends, and I plan to spend the rest of my career working with products and retail,” she said.

Those relationships have also had a positive impact on her career at Love’s and allowed her to grow professionally.

Having the biggest influence on her has been Kyle Sloan, senior manager of Category Management at Love’s. Creegan said that during her tenure with the convenience store retailer, Sloan has helped identify solutions to challenges that arise.

“Kyle has supported me, but has never given me the answer to my question,” she said. “He always asks me exciting questions that keep me driving towards success and greatness.”

In the ever-evolving cycle of new product development, Creegan cited the launch of Love’s Jerky this past January as one of her more memorable moments.

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“It was the first product line launched with Emilee Albright, my new brand manager of Consumables,” she said. “ It is doing very well and we are quite happy with the success.”

As she looks ahead at the next step in her career, Creegan has a very specific goal in mind.

“I would love to continue to build the brand equity of Love’s for product applications,” she said. “We have such a strong brand and I’m very excited to continue to use this amazing asset to help us sell more products.”

ALICIA COOK Category Director Save A Lot

Developing a private label brand that builds a loyal following with shoppers is the goal for all retailers, and something Alicia Cook, category director with Save A Lot, has been able to achieve.

A 2023 Private Label Hall of Fame Honoree in the Private Brand Innovator category, Cook’s multitude of notable accomplishments include the success of Save A Lot’s J. Higgs salty snack private brand.

“I take pride in knowing that I have a real impact on the lives of consumers and appreciate that the results of my actions are measurable.”

– Alicia Cook, Save A Lot

Cited by colleagues as an example of her commitment to providing shoppers quality products, the J. Higgs line has developed a loyal following and is now a highly recognized brand with Save A Lot’s customers.

Cook said the success she has enjoyed throughout her career is the result of several factors.

“I believe that getting my footing in retail at the store level was a foundation of my success, as it allowed me to be on the front lines and understand the day-to-day operations first-hand,” she said. “Having this fundamental knowledge as I entered a career in the corporate world helped drive many

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of my decisions along the way and taught me a lot of the basics of business acumen.”

Retail has been in her blood, and family, as she grew up with her father working for Target. At age 16, Cook took her first job in retail and immediately enjoyed the industry’s fast-paced environment and its constant change.

“I take pride in knowing that I have a real impact on the lives of consumers and appreciate that the results of my actions are measurable,” she said. “I enjoy the ever-changing nature of retail and the evolution it demands in order to stay relevant.”

The changing retail environment was never more evident than at the height of the COVID-19 pandemic. But the challenges of the pandemic also brought with it a success story that stands out to Cook.

Working to launch a new line of private label chocolates under a tight time frame, Cook recalls she was meeting with Save A Lot’s senior leadership, including the CEO, to provide updates and note the challenges faced. But a few words from the then-CEO made her feel at ease.

“The CEO said, ‘If anyone can do it, Alicia can,’” she recalled.

“Receiving that affirmation from our highest-level executive was certainly encouraging and gave me the confidence I needed to deliver the project on time. I successfully launched six new private label SKUs from the initial concept to shelf in 3 months.”

Looking toward the future, her focus is to continue growing as a leader and mentor to her team.

“I am always looking for opportunities to take on new projects that challenge me and fuel my desire for personal growth and look forward to all that is yet to come in my career,” she said.

His efforts led to a successful business and also earned him 2023 Private Label Hall of Fame honors in the Private Brand Innovator category. Today, Tremolini and his team at G.S. Gelato & Desserts are well known in the private brand industry. They have built a reputation for creating successful programs for their retail customers, and many of the nation’s leading grocery chains have entrusted G.S. Gelato with their private label frozen dessert programs.

His reputation for being an innovator is seen in many aspects of his business. This includes formulating flavors with coconut milk, almond milk, cashew milk and oat milk, which previously had not been used in frozen desserts. Additionally, the company offers peanut milk-based frozen desserts as well as an assortment of no sugar added, ketofriendly flavors, and a combination of nondairy/no sugar added/keto-friendly products.

While staying up-to-date with the latest trends and technologies, Tremolini is also able to conceptualize new flavor combinations that have never been created before, as well as meet or exceed the quality of national brand benchmarks. When compared to national brands, many consumers are surprised by the quality and taste of these products available under their favorite private label brand, thus increasing consumer loyalty and benefiting everyone involved.

GUIDO TREMOLINI President/Co-Owner G.S. Gelato & Desserts

Guido Tremolini’s journey to gelato success in the United States has the familiar tones of European immigrants that traveled to the “new world” at the turn of the 20th century.

With his wife Simona by his side, Tremolini came to the U.S. nearly 30 years ago with a clear goal in mind. To bring authentic gelato to what would become his adopted homeland. But there were challenges.

First, Tremolini did not speak English. Second, the equipment he imported to the U.S. to produce G.S. Gelato’s frozen treats was not authorized for use in the country. But those mountainous challenges did not deter him. He spent nights taking English classes and 18 months working to receive approval from the Department of Agriculture and the Food & Drug Administration for the wholesale production of gelato and sorbet using his authentic Italian equipment.

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While staying up-to-date with the latest trends and technologies, Guido Tremolini is also able to conceptualize new flavor combinations that have never been created before, as well as meet or exceed the quality of national brand benchmarks.

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GENERATION

ANTHONY CERA III Own Brands Manager, Perishables SpartanNash

Anthony Cera III has been with Grand Rapids, Mich.-based food solutions company SpartanNash for 13 years, but in the past two years, he has played a major role in the company’s own brands strategy, earning him praise from his SpartanNash team as an upand-coming star in private label.

In 2021, Anthony was promoted to lead SpartanNash’s Own Brands, Perishables team based on his exemplary leadership skills and proven track record of success. In this role, he oversees a team of brand managers and ensures they have the resources and support they need.

In 2022, Cera put an innovative spin on the Our Family private brand, leading the launch of SpartanNash’s new fresh brand, Fresh & Finest by Our Family. This brand delivers a more elevated flavor experience with unique tastes and high-quality ingredients, expanding options to SpartanNash banner store shoppers who are looking for an indulgent experience.

With Cera’s guidance, Fresh & Finest by Our Family launched or converted 415 items, including both staples such as cantaloupe chunks and trendy offerings like zucchini noodles. Private label take-and-bake breads and dips were cited as customer favorites, as Cera helped grow sales and profit by more than 20% year-over-year in his Perishables department.

Cera said that developing these private label

“After many months of development, it’s always a proud moment seeing a product come to life at retail.”

— Anthony Cera III, SpartanNash

products is a fun exercise in creativity and connection with consumers.

“After many months of development, it’s always a proud moment seeing a product come to life at retail,” he said. “I had the opportunity a few years ago to launch a limited edition line of premium ice cream. Ice cream is one of those categories that you can be highly innovative, have fun with, and can easily get people excited about. The product that I was most proud of was a cherry coffee SKU. We were able to partner with our supplier to create an exclusive recipe and incorporate our highest volume private label flavored bagged coffee SKU as an ingredient in the ice cream.”

As private label continues to grow within SpartanNash’s portfolio and for grocery chains around the country, Cera looks to continue growing at the company and developing new and innovative products with his team in the leadership position.

“I’m looking forward to continuing to practice and improve on being a better people leader,” said Cera. “I enjoy sharing my experiences and serving the needs of our associates, so I feel it’s important more now than ever to stay focused on that goal. Taking charge of my own learning and getting outside of my comfort zone is something that I feel is vital to growth both professionally and personally.”

KRISTIN PROVOST

Senior Manager, Category Insights Topco Associates In her role with Topco Associates, Kristin Provost oversees Category Insights of the private label provider, working directly with category managers to help grow and innovate the company’s various private brands. But that alone doesn’t encapsulate the scope of her work.

She seeks ways to improve the selection and quality of the company’s private brand products and is integral in developing partnerships with local suppliers and vendors.

In 2022, Provost worked to improve Topco’s Category Business Plan (CBP) process by helping category managers focus more on strategies and improving storytelling abilities. After years of developing CBPs, Topco leaders say it now has a stronger and more powerful process than ever before, and it is growing sales, thanks to Provost’s leadership.

“I found the key to being a successful category manager was taking the time to talk with the members to understand everything from their unique markets and particular challenges to how different competition can look from region-to-region,” said Provost. “I then took their goals,

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challenges, and needs into consideration to craft the most meaningful and strategic recommendations I could around how to maximize their private label and overall category performance.”

Provost has also helped build a strong, seamless, omnichannel shopping experience at Topco member stores by leveraging technology to enhance the shopper experience and ensure that shoppers have access to the same quality across all channels. By doing so, she has also allowed more customers to find value in private label products by making them easier to access, which in turn helps drive loyalty among shoppers.

A large part of what has led Provost to have such a strong passion for her work at Topco is her connection to the company. Her parents met working at Topco, as her father had a nearly 40-year career with the company.

“I think the success has been in working as a team crossfunctionally at Topco and with our members and suppliers to ensure we are meeting the constantly changing needs of consumers.”

— Kristin Provost, Topco Associates

“I had done ‘Take Your Child to Work Day’ as a young kid and thought the Quality Assurance (QA) lab was the best place to be,” said Provost. “My 7-year-old impression was that they just ate all day, so naturally my first job at Topco was in the QA lab.”

Looking ahead, Provost said her goal is to continue working with member stores to innovate and stay ahead of the grocery curve.

“The last 14 years have been a collection of special moments that just continue to build upon each other,” she said. “While it’s really hard for me to pick just one, I think the success has been in working as a team crossfunctionally at Topco and with our members and suppliers to ensure we are meeting the

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constantly changing needs of consumers. I would like to continue to work strategically within the membership to better anticipate what’s next and how to prepare for it.”

ANGELA LEPORE Senior Manager, Private Brands Product Development Simmons Pet Food

Angela LePore spends time to understand the everchanging pet food market and what each brand represents, so that she can effectively provide a private label program that best delivers to what pet parents are looking for.

As pet ownership grows in the United States, retailers continue to roll out private label pet food offerings with the goal of setting themselves apart from the competition.

Angela LePore, who leads private label product development at Simmons Pet Food, is tasked with coming up with cost-effective, innovative and nutritious pet food products for retailers, and has earned praise from her colleagues in the process.

One of LePore’s more recent accomplishments was the launch of a new packaging format that targeted a national brand, a first for Simmons Pet Food. LePore was completely immersed into the design of this brand, invested in best understanding design philosophy and key attributes, and conducted multiple product cuttings and nutritional analyses in order to create a line that best represents the brand.

The finished private brand product checked all the boxes for the manufacturer, with exceptional palatability and digestibility. The innovative new product resulted in multiple private brand launches.

LePore spends time to understand the everchanging pet food market and what each brand represents, so that she can effectively provide a private label program that best delivers to what pet parents are looking for.

Outside of this launch, LePore has garnered praise for the way she networks with coworkers and colleagues on LinkedIn, Instagram, mentor circles and business organizations, helping elevate morale, confidence and knowledge within the pet food industry. LePore’s versatility and commitment to customer satisfaction are what give her a bright future in the private label industry, earning her an induction into the Private Label Hall of Fame.

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COLLEEN PURCELL KANGAS President Purcell International

Colleen Purcell Kangas joined her family business, Purcell International, full-time in 2008 as VP of the Shelf Stable division, where she was responsible for all logistics functions including importation and clearances of shipments, key strategic sourcing partnerships domestically and overseas, private label accounts and more.

In 2021, Purcell Kangas was promoted as president of the company and continued to thrive, helping lead the private label supplier of meat, fish, vegetables, fruit and juices through the difficult supply chain challenges of the pandemic.

Her leadership qualities were evident early on, even before entering the corporate world. On the field, her soccer teams were consistently top ranked and she was team captain, providing inspiration and leadership to her teammates. In the classroom, she was ranked at the top of her class and was a regular participant in various school activities.

Having grown up in the industry, Purcell Kangas has a unique viewpoint and experience, leveraging her youth and familiarity with software, computers and social media to create advanced opportunities for Purcell

In 2021, Colleen Purcell Kangas was promoted as president of the company and continued to thrive, helping lead the private label supplier through the difficult supply chain challenges of the pandemic.

International, especially for its private label business. By the time she entered college, she had not only helped develop a successful natural and organic arm of the company, but grew it to a multi-million-dollar wing.

To this day, Purcell Kangas strives to streamline, modernize, and grow the thirdgeneration, woman-owned business through custom programs and product innovation, and her youth makes her a major asset for the company, founded in 1954.

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INDEPENDENTS

TOP

INDEPENDENTS PRIVATE BRAND PRODUCTS CONTINUE TO PLAY AN IMPORTANT ROLE IN THE ASSORTMENTS OF REGIONAL OR SINGLE-STORE OPERATORS

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By Greg Sleter

ational chains may drive much of the conversation about the retail world and trends in the business, but for many small communities across the United States, independent grocery stores and retailers continue to provide a vital service to their shoppers.

Often run by families for multiple generations, independent retailers are at the heart of the small business community. On a daily basis, they compete head-to-head with national retailers and need to remain nimble when responding to the needs of shoppers or to macro events such as the COVID-19 pandemic or current-day rates of inflation that have not been seen for decades.

In its first annual Top Independents Report, Store Brands is highlighting two grocery retailers that for decades have served their respective communities in Wisconsin and California.

Based in Spooner, Wis., Schmitz’s Economart dates

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back to 1937, and today is the only full-service grocer in the community. With third-generation owner and operator Ted Schmitz at the helm, Schmitz’s assortment includes a broad selection of private brand products under the SpartanNash Our Family label.

In an interview with Store Brands, Schmitz discussed his family’s long history of serving Spooner residents and shared insight on how the grocer communicates the value its private label selection provides its shoppers.

On the West Coast, Mar-Val Food Stores was founded in the 1950s, and today operates 12 stores in various communities across Northern and Central California.

With a mindset similar to that of Schmitz’s, company supervisor Jeremy Dodson said the grocer remains committed to meeting the needs of its shoppers.

He discussed the important role the Best Yet line of private brands plays at Mar-Val and how the company continues to build off its long history of carrying private label products.

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SCHMITZ’S ECONOMART

SPOONER, WISCONSIN

For more than eight decades, Schmitz’s Economart has been a fixture in the Wisconsin community of Spooner. Located about two hours by car northeast of Minneapolis, the grocery store continues to offer its shoppers a host of services including a UPS drop-off, motor vehicle renewals and a photo kiosk.

Having its proverbial finger on the pulse of the community, evolution has long been vital for the single-store grocer’s success. More recently, the store now owned by Ted Schmitz and his wife, Laura, has expanded its assortment of private brand products while also introducing curbside pickup for online orders and enhanced services at the store’s drive-thru.

“We’re located in a small town and really the only conventional grocery store in Spooner,” said Schmitz, now the third-generation owner of the grocer that carries his family name.

“We compete against some of the national dollar store chains in the area and also a few convenience stores.”

In business for 86 years, Schmitz’s loyal customer base is multi-generational, which Schmitz said he is reminded of from time-totime by his shoppers.

“I talk with people all the time who tell me they remember shopping at our previous location downtown when they were a kid,” he said. “We hear so many stories about our store from the past.”

While private brand products across retail are enjoying a period of growth as consumers navigate current-day high prices, Schmitz noted his store has long been a proponent of carrying private label items and recalls a time in the 1980s when the company’s then-grocery manager was heavy into private brands.

Today, Schmitz’s private label assortment consists mainly of the Our Family own brand from SpartanNash, a relationship that dates back to the early 1990s when the company was known as Nash Finch.

To highlight its private label assortment, Schmitz’s holds a weekly promotion that offers customers a select free private label item when

We really push some great values to our customers and put some strong pricepoints out there on various items ranging from canned vegetables to soups and foods for the fall. We also make sure to highlight the sales in our printed circular.

– Ted Schmitz, Schmitz’s Economart

SCHMITZ’S ECONOMART OFFERS A BROAD SELECTION OF PRIVATE LABEL PRODUCTS UNDER THE OUR FAMILY BRAND.

they make a minimum $20 purchase.

“This has led a lot of people to try products sold under the Our Family brand and realize they are as good as the national brand,” Schmitz said. “We have developed a lot of (Our Family) customers that way and made them less afraid to buy products sold under the brand.”

Additionally, Schmitz’s twice a year hosts its Our Family truckload sales that shines a bright spotlight on its broad assortment of private brand products. This is highlighted by oversized displays in the front of the store that features a host of grocery items. The sales are held just prior to back-to-school

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INDEPENDENTS

season and once during the winter.

“We really push some great values to our customers and put some strong pricepoints out there on various items ranging from canned vegetables to soups and foods for the fall,” Schmitz said. “We also make sure to highlight the sales in our printed circular.”

But building a high level of trust with consumers about a private label assortment does come with challenges. Most notably, a bad experience with one product type can turn off a shopper to the entire line of products sold under that brand.

“There is something to that,” Schmitz said. “But we have found that if the (private label) product selection is one that customers become comfortable with, they will assume that other items in the line that they have yet to try are good.”

He recalled a story his father, Dave, told him about the private brand ketchup the store carried several years back. Originally formulated to mirror the taste of a popular national brand, that brand over the years tweaked its ketchup formulation several times. However, the private brand ketchup Schmitz’s carried did not change and consumers familiar with its taste continued to buy it rather than the high profile national brand product.

More recently, shoppers at Schmitz’s have mirrored many across the nation in turning to private label products in an effort to stretch their grocery dollars.

“We saw a shift to private label products during the height of the pandemic that was driven largely by the lack of availability of certain national brand products,” he said. “Today, with prices high, and many households looking for ways to control spending, private label products are once again the focus.”

MAR-VAL FOOD STORES LODI, CALIFORNIA With a dozen locations spread across Northern and Central California, Mar-Val Food Stores has maintained a focus on its simple, straightforward mindset as it has served its shoppers since the early 1950s.

“Our motto has been and always will be that we’re big enough to serve you and small enough to appreciate you,” said Jeremy Dodson, company supervisor with Mar-Val. “We really live by that.”

With a roster of stores ranging in size from 6,000-8,000 square feet to upwards of more than 20,000 square feet, Mar-Val has a long history of meeting the needs of its shoppers. But doing so over the past couple of years as it faced the challenges presented by the pandemic and more recently inflationary pressures on its customers has tested the company and its experienced staff.

“There were definitely some rough days,” Dodson said. “We were buoyed by the quality of our managers who kept our stores together.

They were vital in helping navigate the emotional torrent of people not knowing what was happening (the next day).”

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While demand from shoppers (for private brands) has risen, we have always been focused on the assortment and something that we’ve been ready for as the demand has gone up. We have had quite a few programs in place to make sure we were making a big impact in private brands.

– Jeremy Dodson, Mar-Val Food Stores

While the Mar-Val team successfully navigated the challenges of the pandemic, the regional grocer has seen a continued shift of its customer’s shopping habits over the past year in the face of rising prices. As a result, more are turning to private brand products.

“The inclination to buy private brands has definitely seemed to go up in many of our stores,” he said. “That is where a lot of the value is for our customer.”

Offering its shoppers a choice between national brands and private brands has been a long-standing way of doing business for Mar-Val. Today, a large percentage of the

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MAR-VAL’S PRIVATE BRAND SELECTION FEATURES ITEMS SOLD UNDER THE BEST YET BRAND.

company’s assortment of store brand products is sold under the Best Yet label.

As other retailers have worked to expand their assortments of store brand products, this has not been a necessity at Mar-Val. Why? Dodson attributes this to the grocer’s long-standing commitment to private brands.

“While demand from shoppers (for private brands) has risen, we have always been focused on the assortment and something that we’ve been ready for as the demand has gone up,” he said. “We have had quite a few programs in place to make sure we were making a big impact in private brands.”

For many years, Mar-Val has highlighted its selection of store brand products as part of its “Compare and Save” program. This long-standing initiative includes placing a tag on each private brand item in-store that outlines the savings customers will see should they purchase a given private brand product instead of the comparable national brand item.

The grocer also shows confidence in its private label selection and the quality of products sold under the Best Yet brand by offering a “Double-Your-Money-Back” guarantee.

Additionally, Mar-Val also ensures that if there are, for example, three facings that showcase a particular item from a national brand, that the comparable private label product is also given three facings.

“We try to cover everything that we can get (in private brands),” he said. “And if we see one category is doing better than another, then we’ll give that category more facings and give it added focus in our ads.”

And as Mar-Val works to continually evolve its private brand assortment, Dodson said he is open to suggestions from shoppers.

“If there is a type of product we are not carrying under our private brands and it’s something we can get, we’ll get it,” he added.

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SNACKS

SOMETHING TO SNACK ON GROWING CONSUMER DEMAND FOR TASTY TREATS OPENS NEW OPPORTUNITIES FOR PRIVATE LABEL GROWTH

By Greg Sleter

S

nack food retailers and suppliers rejoice. Americans are snacking more and this trend is expected to continue for the foreseeable future.

Research from Circana shows that 49% of consumers are snacking at least three times per day, up 4% over the past two years. With a growing number of consumers visiting their snack closet with greater frequency, there is opportunity for retailers to entice consumers to buy more.

As with any consumer purchase behavior, price is a major factor. More recently, as prices across the store rise, shoppers are not just grabbing their favorite branded products off of store shelves. They’re now looking toward private label products in an effort to save money.

Circana insights show that 72% of consumers look at the price of snacks before making a purchase, up 5% over the past two

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There was a recognition from retailers a while ago about the role snacking was going to play. They started to invest in innovation, trying to take over certain categories with products that offer quality and a positive taste experience at a price less than that of national brands.

— Sally Lyons Wyatt, Circana

Private label potato chips at Lidl.

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SNACKS

Snacking Stats

61% 59% 66%

Consumers who switch to private brands when budgets get tight*

Consumers who snack in the evening*

Consumers who snack in the afternoon*

*Figures from Circana “The Snacking Supernova”

years. Additionally, one quarter of consumers said they are buying items on sale with greater frequency, up 3% over the same time period.

The price sensitivity of today’s consumers would seem to provide new opportunities for retailers to either boost their private label snack assortments, or enhance the visibility of those products in front of consumers.

“In fact, 61% of consumers said they switched to private brands when their budget got tight, so many made the switch,” said Sally Lyons Wyatt, executive vice president and practice leader with Circana.

Over the past five years, a number of private label snack categories have seen at least 5% dollar share along with unit share grow. They include refrigerated snack cakes and doughnuts; refrigerated pastry, danish, and coffee cakes; frozen cookies; aerosol and squeezable cheese spreads; snack nuts; and pork rinds.

“There was a recognition from retailers a while ago about the role snacking was going to play,” Lyons Wyatt explained. “They started to invest in innovation, trying to take over certain categories with products that offer quality and a positive taste experience at a price less than that of national brands.”

Further investment in innovation by retailers in their private brand snack selection could also open new doors with shoppers, and not just with those at

Better-for-you snacks like these Aldi wafers are gaining traction.

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lower income levels. Depending on the category, Lyons Wyatt said retailers could bring to market snack products that are aimed at consumers at higher income levels who are also looking for options that offer a better value.

“Private brands in the snack category are appealing to all generations and consumers at all income levels,” she added.

Opportunity to drive more unit sales of snacks is also prevalent across a number of retail channels. While higher prices over the past two years have driven dollar growth across retail, only two channels – club and military – have also seen growth in unit share.

Lyons Wyatt feels the growth in unit share seen with the nation’s leading club retailers stems largely from consumer knowledge of the strong value they get when shopping at a club.

“People know that they are going to get the best price per unit/price per ounce at a club,” she said. “This is why they’re willing to pay that bigger ticket.”

Lyons Wyatt said the unit growth at military retailers stems largely from out-of-stocks seen during the height of the pandemic, which led to those outlets comping against year-over-year soft sales figures. Additionally, she noted higher gas prices led shoppers eligible to purchase fuel at military-operated convenience stores/gas stations to also buy more snacks at these retail outlets.

On the flip side, drug chains and dollar stores saw the largest decline in unit sales, according to Circana, which might surprise some given the steady foot traffic retailers in these channels enjoy.

To boost unit sales, Lyons Wyatt said retailers in these two channels need to get the price/size equation correct while also leveraging social media and giving their product selection a higher profile position on their respective apps.

“They should also look at bundles and co-promotions, anything they could do that would help lessen pricepoints,” she said. “I would also test and learn in a continuing effort to get the assortment to where it needs to be.”

Store Brands ● May/June 2023 ● www.storebrands.com

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5/26/23 11:33 AM

DAIRY

CREATIVITY, CLEAN LABELS DRIVE DAIRY INNOVATION AND HEALTHIER CHOICES ARE THE FOCUS FOR RETAILERS AND SUPPLIERS WHEN IT COMES TO PRIVATE LABEL PRODUCTS

By Zachary Russell

I

t’s no secret that plant-based foods and beverages have seen rapid growth over the past few years.

According to Statista, the market for milk alternatives in the United States is valued roughly at $3.1 billion, while other non-dairy products continue to gain traction.

Given the staying power of these dairy-alternatives, retailers are looking to strike a balance between traditional dairy and the growing non-dairy category. For grocers and suppliers alike, the competition has driven newfound innovation in the dairy aisle.

At Southeastern Grocers (SEG), officials with the regional grocer said they are committed to offering its shoppers a broad range of options.

“While we have observed a shift towards plant-based milk and other dairy alternatives, preference for these products has stabilized,” said Tracy Aquila, vice president of Dairy & Frozen at SEG. “Customers are still seeking these options, but value is a top consideration. While traditional dairy products still hold a significant market share, the rise of plant-based options has prompted the industry to adapt and innovate within the dairy category.”

SEG has debuted a flurry of private label dairy products in recent months that offer shoppers unique items that differentiate that category.

A newer item, SEG’s Carolina Reaper Cheese, is available in slices and shreds. Last year, the company earned 12 awards at the World Dairy Expo Championship Dairy Product Contest for unique items that include

Innovative, creative dairy products are succeeding at SEG stores.

Soft Jalapeño Cream Cheese Spread, Soft Strawberry Cream Cheese Spread and several ice cream flavors such as Banana Foster and Coconut Almond Fudge from its Prestige private brand.

“We approach our private label development with a people-first mentality,” said Aquila. “We regularly introduce limited-time offerings and seasonal items to our line of own brand products. These special offerings help keep our own brand offerings, and the dairy category, fresh and exciting for shoppers and ensures that our private label selection remains dynamic for customers who seek variety and novelty.”

Innovative flavors and flavor concepts are key for differentiating in the dairy category, and a number of up-and-coming flavors have proven to be successful. Per SPINS data, sweet cream, mango and pumpkin/pumpkin spice are emerging in the milk and plant-based milk category while maple and cookie, pastry and cake flavors are exploding in the creams and creamer category. Like other categories, cleanlabel and better-for-you attributes are growing as consumers become increasingly health-focused, keeping some loyal to dairy.

“What we’re seeing is that value-oriented shoppers and brands are continuing to reshape the flavor experience in dairy by choosing more natural and real-ingredient sources,” Jacob Knepper, senior data analyst with SPINS, said at a recent Dairy www.storebrands.com ● May/June 2023 ● Store Brands

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DAIRY Foods webinar on emerging trends.

According to SPINS data, clean-label dairy milk has seen a 7.4% increase in dollar sales growth year-over-year for the 52-week period ended March 26, 2023. In the yogurt category, attributes like no artificial sweeteners (+11.6%), no artificial preservatives (+12.4%) and no artificial flavors (+11.5%) have seen notable dollar sales growth in the past year. Natural, low-calorie sweeteners like coconut sugar and allulose have increased their presence in dairy products during the same period.

At Aldi, discount-minded shoppers are also looking for better-for-you dairy products.

“From our traditional dairy lovers, we’ve recently seen Aldi shoppers reaching for high-protein, low-sugar options in our dairy aisle,” a spokesperson from the retailer told Store Brands. “This preference is driving demand for our multi-pack Greek yogurts, which pack a nutritional punch into a convenient, on-the-go format. Shoppers can feel good grabbing our dairy products knowing they not only taste good but are free from added hormones and rBST.” While plant-based dairy alternatives have grown, it hasn’t necessarily hurt the demand for dairy overall. According to Circana, for the 52-week period ended April 23, 2023, dairy is still the highest valued edible category. Year-over-

year, dairy’s dollar sales have increased 16.8% while unit sales have decreased 3.8%.

Hispanic Cheese Makers, a manufacturer of Mexican, Caribbean and Central American cheeses, has seen increased private label demand, so much so that they have invested in their production capabilities to keep up. The company manufactures cheese such as Queso Cotija, Queso Fresco and more from milk without rBST hormones.

“This demand is driven by not only Hispanic consumers but also by mainstream consumers,” said Mike Braun, CEO of Hispanic Cheese Makers. “Consumers’ appetite for our cheeses is growing as they discover our delicious taste and versatility. The company continues to introduce new products and product variants in the Hispanic cheese category. Some of its most recent introductions include snack-centered Oaxaca bites, Panela with jalapeño and Quesadilla with jalapeño.”

The company recently completed a multi-phase plant expansion, a total investment of $30 million. The project included new loading docks, coolers and storage, major machinery and more.

“A key challenge has been balancing growth and disruption from our recent investments all while meeting customer fill rates,” added Braun.

Ben Yee Director, Processor Partnerships California Milk Advisory Board 209-690-8232 Office 510-882-8650 Mobile byee@cmab.net www.realcaliforniamilk.com

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Store Brands ● May/June 2023 ● www.storebrands.com

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6/1/23 2:15 PM

PAPER PRODUCTS

PAPER PRODUCTS

GREEN MOVEMENT FOR PRIVATE LABEL PAPER PRODUCT MANUFACTURERS, SUSTAINABILITY REMAINS THE GOAL DESPITE PRODUCTION CHALLENGES AND SOME HESITANCY FROM CONSUMERS

By Zachary Russell

I

n categories across the store, sustainability is a growing concern for consumers, and that includes paper products such as paper towels, napkins, tissues, toilet paper and more. A recent NIQ report showed that nearly seven out of every 10 consumers (69%) value sustainability more than they did two years ago.

Manufacturers see paper products as one of the categories most primed to take on sustainability, with companies focused on innovating and creating high-quality private label products, while doing so efficiently and in a manner that is planet-friendly.

However, when it comes to communicating sustainability initiatives, it isn’t always easy. Fabio Vitali, vice president of Marketing at Sofidel, said there are a few challenges to making, and marketing, Earth-friendly initiatives:

Whether it concerns the raw materials we purchase or working with outside agencies to certify our products, we show our end users that we are committed to a greener planet.

-Steve Saraf, U.S. Alliance Paper

knowledge, greenwashing and interest.

“Knowledge is key and category managers are not always equipped or knowledgeable enough to appreciate our efforts and improvements. This is why we believe we also have an educational mission there,” Vitali said. “Some (retail) customers do not have a sustainability department, which complicates the conversation.”

Greenwashing is an ongoing issue in the CPG industry as sustainability continues to take precedence in the market because, according to Vitali, product claims are not always as accurate as they are presented.

He said Sofidel has taken a number of steps to enhance its sustainability bonafides, including limiting fibers purchasing and CO2 emissions and reducing water and plastic use. These initiatives have earned the company a top ranking by Morningstar

www.storebrands.com ● May/June 2023 ● Store Brands

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PAPER PRODUCTS

in its Sustainalytics Index for Environmental Risk Management.

“These (false sustainability claims) mislead the attention and damage companies like ours that really have a solid position, program and basis when it comes to sustainability,” he said. “Lastly, interest. Retail customers are not always interested or believe that consumers are interested in getting a sustainable product-based path and they prioritize price or quality.”

In addition to Sofidel, U.S. Alliance Paper is also focused on sustainability.

The company said it offers retailers a sustainable product line made using 100% recycled fibers with 80% post-consumer content, and without chlorine bleaching.

“Whether it concerns the raw materials we purchase or working with outside agencies to certify our products, we show our end users that we are committed to a greener planet,” said Steve Saraf, vice president of Sales at U.S. Alliance Paper. “We also manufacture a line of products branded ‘Earth One.’ We use the same raw materials to manufacture private label products for our retail partners, giving them the opportunity to show their green commitment to their consumers.”

Dollar stores have seen recent gains as shoppers seek value.

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Larger pack sizes are a way for some consumers to get the most bang for their buck on paper products.

The biggest challenges facing ‘green’ paper products continues to be consumer acceptance.

-Jeff Leaf, U.S. Alliance Paper

However, the challenge of making sustainable, store-branded paper products has been made more difficult by recent inflation and supply chain woes. According to the U.S. Bureau of Labor Statistics, the price of paper, pulp and related products reached an all-time high in January of 2023. More recently, the price of paper products across all channels has been consistently elevated since the end of February, according to Circana’s CPG Inflation Tracker.

“The cost of pulp increased dramatically between 2020-2022,“ said Jeff Leaf, director of Sales at U.S. Alliance Paper. “Looking back over the past 18 months, our supply chain continues to be unstable. Manufactures like us are at the mercy of their supply base, something we have not experienced since opening our doors more than 25 years ago. Between the raw material increases and higher labor and operating costs, manufacturers have less pricing flexibility, and have had to pass on costs to remain financially viable. In turn, retailers are forced to raise prices, which contributes to the inflationary spiral we are in.”

Despite growing demand and awareness overall, not all shoppers are interested in sustainable paper products, especially when food and nonfood prices continue to remain high, as Vitali mentioned. When consumers are struggling to make ends meet and have to stretch their dollars at the grocery store, it could often come at the expense of paper products billed as sustainable. Still, experts are hopeful that this issue will be resolved over time.

“The biggest challenges facing ‘green’ paper products continues to be consumer acceptance,” said Leaf. “A consumer’s desire to ‘do the right thing’ for the environment does not translate directly to their purchasing behavior at the register. In these inflationary times, it also seems that price point triumphs over good intent. With a little more breathing room for consumers, hopefully the day will come for ‘green’ paper products.”

Store Brands ● May/June 2023 ● www.storebrands.com

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6/1/23 4:22 PM

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