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At Global we are here to support the country and you… …expanding capacity at possible the fastest pace possib
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THE PULSE OF PRIVATE LABEL
NOVEMBER 2020 www.storebrands.com
THE ITALIAN MARKET P.39
With the introduction of Bee & Willow, its ďŹ rst owned brand, alongside key exec moves, the chain seems to have a comfortable future
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VOLUME 43 NO.8
28
21
28 Profile: Independent Grocers Alliance
34 Hot New Products
With PLMA’s annual show going virtual, Store Brands highlights the latest from private label manufacturers.
The independent grocer brand gives its IGA Exclusive Brands a revamp.
Cover Story
Bed Bath & Beyond’s private label push With industry private label vets aboard,the home retailer bolsters its store brand approach.
39 Italian Imports
Retailers look to carve out mid- to upper-tier pasta, sauces and oils in their owned brands.
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06
Editor’s Note
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Industry News
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Viewpoints
62
Dispatches: Store Brands in the Wild
44 Paper Chase
How private label paper products build on pandemic-driven success.
Store Brands (ISSN-0190-9851; USPS # 0488-370) is published 9x a year by EnsembleIQ, 8550 W. Bryn Mawr, Suite 200, Chicago, IL 60631. Subscriptions: One year, $110; two years, $200. One year, Canada $130; two years, $235 One year, foreign $150; two years, $285. One year single US,$14; one year, Canada, foreign, $16. Payable in advance with a bank draft drawn on a US bank in US funds.Single copies $20. Foreign, $85. 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 3200 Northbrook, IL 60065-3200. Copyright 2020 by EnsembleIQ. All rights reserved, including the rights to reproduce in whole or in part. All letters to the editors of this magazine will be treated as having been submitted for publication. The magazine reserves the right to edit and abridge them. The publication is available in microform from University Microfilms International, 300 North Zeeb Road, Ann Arbor, MI, 48106. The contents of this publication can not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for claims and representations. 4
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FILLING THE VOID WITH NO PRIVATE LABEL TRADE SHOW THIS MONTH, RETAILERS, SUPPLIERS AND EVEN THIS MAGAZINE NEED TO ADJUST As you all know, there will not be a PLMA show in Rosemont, Ill. this month — and that is having a dramatic impact on everyone involved in the private brands industry. That includes the staff at Store Brands magazine. We can only hope that the effects of the horrible pandemic will fade away so that PLMA can return next November to its home of about 40 years at the Donald E. Stephens Convention Center. The bottom line is that the store brands industry needs an event where we all can meet. PLMA is doing all in its power, as you can read in this month’s issue, to launch a virtual show in early February to Seth Mendelson bring retailers and suppliers together. Publisher/ Keeping our industry informed and involved is totally Editor-in-Chief necessary right now as we face what might be the most difficult time ever for mass retail. Even as consumers cautiously return to stores and the economy flutters ahead, many industry experts say the impact of COVID-19 on retail could be far-reaching and may influence the industry for years to come. The PLMA’s Private Label Trade Show in November, and its counterpart, PLMA International, Keeping our which is traditionally held in late May in Amsterdam industry informed but is going digital in December, have always been and involved two fantastic ways for people to engage with each other. And, that includes the editorial and sales teams is totally necessary of Store Brands, where we engage with retailers right now as we and suppliers and keep our collective hands on the face what might pulse of the industry. be the most As we keep saying, the private label category is at an interesting crossroads today. While also sufferdifficult time ever ing the impact of the virus, private label and store for mass retail. brands are benefitting from the fact that more and more consumers are looking to find quality merchandise at a more affordable price point. Our industry is making an impact, simply because it is offering a legitimate alternative to consumers. There is always more work to be done and, to be ultimately successful, it is going to take a collaborative effort from everyone in our community to stay ahead of the curve. Yes, we have no event this month, but get ready for the virtual PLMA events in December and February. It is not the real thing, but I am confident that these events will serve our industry well during these difficult times. 6
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November 2020
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An EnsembleIQ Publication 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631
Publisher/Editor-in-Chief Seth Mendelson (973) 650-0263, smendelson@ensembleiq.com
EDITORIAL Managing Editor David Salazar (212) 756-5114, dsalazar@ensembleiq.com Executive Editor Dan Ochwat (773) 992-4416, dochwat@ensembleiq.com
ADVERTISING & SALES National Sales Manager Natalie Filtser (917) 690-3245, nfiltser@ensembleiq.com
PROJECT MANAGEMENT/PRODUCTION/ART Vice President, Production Derek Estey (877) 687-7321 x 1004, destey@ensembleiq.com Creative Director Colette Magliaro cmagliaro@ensembleiq.com Advertising/Production Manager Pat Wisser (973) 607-1322, pwisser@ensembleiq.com
LIST RENTAL MeritDirect Marie Briganti (914) 309-3378, mbriganti@meritdirect.com
SUBSCRIBER SERVICES/ SINGLE-COPY PURCHASES contact@storebrands.com TOLL-FREE: 1-877-687-7321 FAX: 1-888-520-3608
REPRINTS, PERMISSIONS AND LICENSING Please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877)652-5295
CORPORATE OFFICERS Chief Executive Officer Jennifer Litterick Chief Financial Officer Jane Volland Chief Innovation Officer & Managing Director of Path to Purchase Institute Tanner Van Dusen Chief Human Resources Officer Ann Jadown Executive Vice President, Events & Conferences Ed Several Senior Vice President, Content Joe Territo
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.
www.storebrands.com
11/4/20 10:21 AM
Some things just work better together.
Choosing to partner with Massimo Zanetti Beverage for your coffee program gives you the distinct advantage of having access to our global reach, unmatched industry expertise and the ďŹ nest coffee brands and products available. Add MZB to your team and discover your perfect store brand solution today.
CONTACT MZB TODAY TO MAKE THE MOST OF YOUR COFFEE PROGRAM www.mzb-usa.com | 757-215-7300
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Kohl’s to Debut FLX 7-Eleven Boosts Own Athleisure Clothing Brand Drinks With Triton
As Kohl’s looks to position itself as a leader in the growing active and casual apparel categories, it is adding a private athleisure brand to its offerings. The Menomonee Falls, Wis.-based retailer is set to unveil FLX — a specialty athleisure line — in March 2021 with a focus on stylish men and women’s separates. FLX will feature products made with performance fabrics and functional details, the company said, noting that it would feature year-round core apparel products and seasonal transition items, including fleece, jackets and layering pieces. With a focus on comfort and style, Kohl’s said FLX would offer plus and big and tall sizes, and be made from sustainable materials. It is meant to offer a high-end complement to such brands in its assortment as Tek Gear, adidas, Champion, Under Armour and Nike, as well as casual brands like Sonoma Goods for Life, Croft & Barrow and Columbia. “Kohl’s is excited to introduce FLX, a new specialty athleisure brand, to our brand portfolio as we work to continue strengthening our position as a destination for active and casual apparel,” said Doug Howe, Kohl’s chief merchandising officer. “As customers have been increasingly shopping for a more comfortable and casual lifestyle, Kohl’s identified a plan to more aggressively serve as the most trusted retailer of choice in these categories. With an emphasis on high-quality athleisure, FLX fills a white space in our current private brand portfolio and will be a great answer to these growing consumer trends.” Kohl’s has been looking to invest in active and casual, in part through recent partnerships with Under Armour and Adidas, while also focusing on inclusive sizing in the space, which it achieved with the introduction of Under Armour Big & Tall last fall. The retailer is growing the footprint of activewear in 160 stores by 25%, and has added Adidas shop-in-shops to 175 stores. This fall, it introduced trendy casual products from Lands’ End and Toms shoes. 8
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7-Eleven is adding to its arsenal of private brand beverages, unveiling Triton, an energy drink made with L-Theanine that provides a sugar-free energy drink option. The retailer recently rolled out its private brand Icelandic spring water and has a range of 7-Select cold-pressed juices, own brand versions of organic milk, and its Replenish sports drinks, and more. Triton comes in three flavors — original (a citrus-style flavor), strawberry kiwi and blood orange yuzu. Triton is described as a drink built for the mind and body, containing caffeine and the amino acid Ltheanine, which are both sourced from green tea leaves. The beverage also has B vitamins, ginseng, taurine, guarana and amino acids. Triton is not 7-Eleven’s first foray into the energy drinks market. Last year, the Irving, Texas-based convenience chain launched its store brand Quake Energy Drink, accompanying the launch with a matching Slurpee. “7-Eleven is one of the leading beverage sellers in the U.S., and our private brand drinks are a growing segment of that business,” said Jack Stout, 7-Eleven senior vice president, merchandising and demand chain. “And that’s not by accident. We are always looking for ways to improve quality and offer taste profiles that are new and trending at a great value.”
www.storebrands.com
11/3/20 5:11 PM
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Kroger Expands Simple Truth Plant-based Offerings
The plant-based category continues to grow at Kroger. The retailer is debuting 50 items under its Simple Truth Plant Based line, including new Emerge meatless chicken items. Emerge, which launched in January, is expanding to include Simple Truth Emerge Chick’n, which also will offer patties and grinds. The broader Simple Truth Plant Based portfolio first hit stores last September with roughly 20 items that Mag.pdf dough, 1 3/20/20 4:12sour PM included 20_0313_AD_H_Store vegan chocolate Brands chip cookie oat milk,
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cream, deli sauces, sausage and more. Since then, the retailer has added more items to account for vegan and flexitarianfriendly eaters, and the portfolio will include more than 75 total products by year’s end. Emerge fresh chicken-less patties and grinds are designed to offer the same taste, texture and sizzle as a chicken product while also being free of GMOs, dairy and soy. The items provide up to 21 g of wheat-based protein per serving and are located in the traditional meat case. The beef-centric Emerge products feature pea-based protein. Other standouts in the larger Simple Truth Plant Based extension are such dairyfree options as cheddar and mozzarella cheese shreds and cheddar and hot pepper cheese slices; oat milk ice cream in flavors that include strawberry graham, peanut butter chip and maple pecan; almond milk yogurts; and Caesar and ranch salad dressings. There also are more trend-forward items, including ready-to-eat chocolate truffle brownie batter and chocolate chip cookies, as well as cauliflower dips in such flavors as buffalo, tzatziki, spicy queso and cilantro with jalapeno. “As our customers’ eating styles and health and wellness goals continue to evolve, Simple Truth will continue to deliver an unmatched combination of quality and value for natural, organic and plant-based foods,” said Brad Studer, Kroger’s senior director of Our Brands. “We believe that everyone deserves to have access to fresh, affordable and delicious food, no matter who you are, how you shop or what you like to eat, and we will continue to innovate and inspire our selection of products to deliver on that very promise for our customers.”
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11/1/20 7:50 PM
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Petco Adds to WholeHearted Line Focusing on more active dogs in need of a high-protein diet, Petco has debuted WholeHearted Active Performance — a line extension under its WholeHearted store brand. The products come in two varieties — chicken and rice and beef and rice — that are available in stores and online. Petco’s WholeHearted brand has been around since 2016 and includes a range of wet food and treat products for both dogs and cats. The WholeHearted Active Performance dog products emphasize the retailers focus on health and wellness and contain hand-picked probiotics to aid in digestion, as well as added nutrients to help promote powerful
joints and healthy skin and coat. The products are formulated without corn and list meat as the top ingredient — focusing on supporting active dogs that need to maintain strong muscles. Petco touted that 89% of WholeHearted Active Performance’s protein comes from animal sources. The private brands are sold at a value too, starting at $9.99 for a 5-pound bag. “We are committed to improving the lives of pets and pet parents, and that means providing them with more specialized, high-quality nutrition offerings that meet their specific needs at an affordable price point,” 13. Publication Title
United States Postal Service 1. Publication Title
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Store Brands
5. Number of Issues Published Annually
12
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9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor
Total Number of Copies
24,749
24,586
Contact Person
Lina Trunina
16,704
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0 0 0 16,704
0 0 0 16,971
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0 0 7,548 24,252 0 24,252 68.9%
0 0 7,383 24,354 0 24,354 69.7%
(Net press run)
(Include direct written request from recipient, telemarketing and Internet re-
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Editor
Published Nearest to Filing Date
(1) Outside-County Paid/Requested Mail Subscriptions stated on PS Form 3541.
(Not printer)
EnsembleIQ 8550 W. Bryn Mawr Suite 300 Chicago, IL 60631
No. Copies of Single Issue
During Preceding 12 Months
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said Nick Konat, chief merchandising officer at San Diego-based Petco. “Featuring a top-notch formulation and unique ingredient panel, WholeHearted Active Performance will help fuel active dogs while giving them the nutrients they need to help maintain healthy lifestyles.” Petco operates more than 1,500 locations across the United States, Mexico and Puerto Rico.
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the Mail)
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11/1/20 7:53 PM
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VIEWPOINT
SUPPLY CHAIN PARTNERS MUST HELP RETAILERS INNOVATE Jeff Pepperworth, president and CEO, iGPS Logistics
A
s every retailer knows, the COVID-19 pandemic and resulting economic crisis have been incredibly challenging for the industry. Between statewide lockdowns, the need for enhanced safety and hygiene measures, and slowed economic activity in certain markets, the industry’s already narrow margins have gotten even slimmer. To survive and thrive in the COVID market, retailers need innovative and forward-thinking supply chain partners and services to help them deftly navigate an uncertain landscape. When evaluating your supply chain to keep your business one step ahead of these challenges, we recommend that certain operational considerations be taken into account. The COVID-19 crisis has greatly accelerated certain pre-existing supply chain industry trends. Namely, businesses need to identify operational and logistical efficiencies both to lower costs and adapt to a volatile market with changing demands. As a retailer, it is invaluable to work with supply chain partners — distributors, third-party logistics providers and other organizations — that prioritize innovative solutions and invest in technological advances for their, and your, futures. For instance, for pallet pooling
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and distribution services, a closed-loop shipping model offers greater transportation efficiency and saves time and money for all involved. Automation, including RFID chips, integration with the Internet of Things, and track-and-trace technology, is a vital element in the supply chain that reduces costs, generates data for evaluating supply chain efficacy, and minimizes direct human contact during the pandemic. By providing these services and technology, supply chain partners demonstrate their commitment to innovation that can address future market challenges. It is likewise important for supply chain partners to invest in these and
THE BUSINESSES MOST POISED TO SUCCEED WILL BE THOSE THAT ALREADY EVOLVED INTO A STATE OF PREPAREDNESS EVEN BEFORE THE PANDEMIC HIT.
other innovations well in advance, rather than scrambling to address issues as they arise. Hygiene and worker safety have taken much of the spotlight in the wake of the pandemic. Many companies now offer some form of cleaning or sanitization for their associated products and services, but those that invested in this area well before the COVID crisis will have distinct advantages. Supply chain providers that have established sanitization programs years before this pandemic will have more testing and development behind them than those that did so after March 2020, meaning greater efficacy and reliability. The same principle applies to track-and-trace technology and other innovations that increase efficiency. The ability to adapt to the COVID world is important, but the businesses most poised to succeed will be those that already evolved into a state of preparedness even before the pandemic hit. On a similar note, the importance of environmental sustainability has grown rapidly in supply-chain management, and a retailer would be remiss to not include it as a consideration when evaluating supply chain partners. Consumers are increasingly looking to businesses to demonstrate improved environmental stewardship; yet beyond good public relations and marketing, sustainability efforts also can produce significant savings and business efficiencies. For example, several major retailers have urged manufacturers and distributors to move toward recyclable plastic pallets, due to their durability, lighter weight, and decreased carbon footprint. Retailers everywhere are facing an historical challenge in the COVID crisis. Supply chain partners that go above and beyond in operational efficiency, technological investment, hygiene, and sustainability can help position their retail clients best to adapt to this volatile landscape. As a retailer, to ask for anything less from your partners is a disservice to your hard work and your future. SB
www.storebrands.com
11/1/20 7:46 PM
Lighter. Smarter. Greener. Pick 3. iGPS’s 100% recyclable plastic pallets check all the boxes — and will deliver for your supply chain. It’s how to keep your business moving forward. Call 866-835-5191 or go to iGPS.net today.
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11/2/20 1:52 PM
STORE BRAND Q&A
AGRITALIA OFFERS MORE THAN PRODUCTS
Sergio Massa, founder
Leo Nucera, sales and marketing director
An effective and simple solution for conventional and organic private label projects from Italy and Europe, Agritalia gets products to retail stores through an efficient operations program and technology. The company discusses cloud sourcing intelligence, logistics and more. Store Brands: Tell us about Agritalia. What makes the company unique? Agritalia is a family business, founded in 1987 by two brothers, Sergio and Stefano Massa, when the idea of private label was very niche, especially related to imported items and in particular organic products. Today, Agritalia is an effective and simple solution for retailers to start a private label project from concept to re-orders. How? Thanks to a comprehensive portfolio of almost a thousand products sourced from certified suppliers located across Italy and the European Union. In addition, the company completes its offering by providing extensive services such as: market analysis — run by an in-house marketing department — to highlight any “white space” on the customer’s (retailer) shelf, meaning any interesting/innovative/trendy products that branded producers or competitors have and a specific private label brand doesn’t; suppliers and raw materials’ procurement, being sure to identify the best partner for each project and secure the required raw materials at the most competitive price; research and development
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teams that can tailor-make any product according to the customer’s needs or requirements; quality assurance in order to be compliant with quality standards requested by the customer. The company also offers logistics support to ship the goods from Italy and Europe to the U.S. with an innovative system called Automated Replenishment Program (ARP), that is one of the biggest innovations in the supply chain management. The ARP is an advanced logistics solution which allows us to optimize freight consolidation and deliver even a single pallet directly to the regional distribution centers (DCs), granting maximum flexibility also for small private label projects. SB: Cloud Sourcing Intelligence and Data Sharing are vital to building sales and profits. Can you discuss the role they play with retailers? The Cloud Sourcing Intelligence (CSI) is an advanced proprietary software able to analyze sales data from shelf to
www.storebrands.com
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estimate the exact assortment needed from the retailer week by week to meet the demand, helping managing production timelines, freight consolidation from different plants and deliveries to DCs accordingly, while cutting down third-party warehouse and unnecessary inland costs. The combo of ARP and CSI allows the products to always be on time and on shelf, eliminating any risk of out of stock and/or over stock which negatively affect sales’ performance and profits. Of course, a customized program can only be built if the information about the specific retailer, distributor, importer/vendor, and supplier are known and shared with Agritalia and among each other. Therefore, we say information and data sharing is crucial. SB: All retailers are seeking to reduce the cost of goods. How does smart logistics play out here? Freight consolidation is key to optimize logistics costs. In fact, being able to ship mixed containers rather than full containers of the same item/category directly from our Italian hub to the retailer’s DCs is a major advantage for our customers. First, this means better inventory management cutting down extra costs for overstock. Secondly, as mentioned before, direct shipment allows the retailer to avoid stocking the incoming goods at a third-party warehouse and the unnecessary inland transportation to get them to its DCs — a huge benefit in terms of costs reduction. Finally, freight consolidation does not apply only to the private label products but can be extended to other Italian branded products headed to the same customer: the more products to send per container the more opportunities to reduce logistics costs. SB: Tell us about sustainable delivery? How does that benefit retailers? Over time, the secret to success has been to always pay close attention to trends and evolutions in the food industry to shape the company’s business model to changes. As evidence of this engagement, in recent years Agritalia has been strongly committed to one of the most important topics of the modern society: sustainability. Nowadays, more and more retailers have started to show great interest for the environmental issue and begun working to reduce their impact on the environment, also to improve the perception that consumers have of their banner. Therefore, retailers are seeking companies that are committed to sustainability, too, to cooperate in the achievement of important sustainability goals. Agritalia, following its mission to develop a smarter supply chain, has started a significant collaboration with U.K.-based Sheffield University to study the eco-sustainable implications of the Agritalia, and sister companies Agrilogistica and Agrusa, distribution model, and
the consequent reduction of the environmental impact, food waste and carbon dioxide emissions in the retail industry. SB: And, you have been recognized for your achievements. Yes, in February Agritalia was awarded “Supplier of the Year with Special Recognition” by Whole Foods Market among the non-perishable goods category. The company was chosen for its dedication to operational excellence, extraordinary service, and premium quality. As the leader in exporting Italian food products and a Whole Foods Market Exclusive Brands supplier since 1997, Agritalia continues to provide best-in-class service and quality through Whole Foods Market’s expansive portfolio of Italian goods under its private label brands. SB: So, what does the future look like? How is Agritalia prepared to help? The theme of sustainability will still be dominant for the next few years. Therefore, the company will make further efforts to improve our logistics model so that it brings real benefits for the environment besides customers. In addition, regarding the private label projects, the goal is to work on the adoption of eco-sustainable packaging, the use of raw materials resulting from circular economies and the launch of products from green production processes to broaden the scope of the environmental/sustainable commitment. “Agritalia will continue to partner with Sheffield University, as part of the ProCEedS (H2020-MSCA-RISE-2018) project consortium, to get to a new certified standard of sustainability for the whole group. Please visit our websites for more info: agritalia.com; agrilogistica.com; agrusainc.com. SB
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QUESTIONS/ANSWERS
READY FOR ANYTHING PLMA’S PRESIDENT TALKS ABOUT HOW THE TRADE GROUP’S UPCOMING ONLINE EVENT WILL BE A RESOURCE FOR AN INDUSTRY THAT SPENT 2020 ADAPTING TO HUGE CHANGES
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fficials at the Private Label Manufacturers Association are getting excited about the online launch of PLMA Live! presents Private Label Week, slated for Feb. 1 to 5, as an answer to its annual and extremely popular Private Label Trade Show that was canceled because of the COVID-19 pandemic. Peggy Davies, president of the New Yorkbased trade association, with about 4,000 members worldwide, talked with Store Brands about the virtual event and how retailers and suppliers can best benefit from it.
STORE BRANDS: WHAT’S GOING ON IN THE PRIVATE LABEL WORLD DURING THE WORST ECONOMIC MOMENT OF ALL TIME AND WHAT IS THE INDUSTRY DOING TO RESPOND? PEGGY DAVIES: There’s no question the coronavirus pandemic here in the U.S. and around the world has had tremendous and far-reaching impact throughout the private label industry, as it has for practically every aspect of life in 2020. Everyone experienced at once the changes and disruptions of emergency health and safety measures that had to be taken into account in our workplaces and production, our sourcing, transportation, distribution and basic ways of doing business to keep supply chains moving in spite of these disruptions, and to help retailers replenish the inventories in their stores while responding to radical shifts in consumer demands. Retailing, as you know, was suddenly thrust into the spotlight as more essential to everyone’s health and well-being than most people even thought about 18
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before, and retail chains were quick to make whatever adjustments were needed. Private label suppliers have pulled out all the stops as retailers explored every avenue to keep products in stock on the shelves and continue serving their customers. In the midst of trying to keep shoppers and employees safe, retailers also wasted no time expanding the options for shopping at home, pickup and delivery. And in many cases suppliers have offered solutions by thinking outside the box and shifting production to meeting the retailers’ needs with different configurations, pack sizes, delivery schedules, and so on. SB: While we are certain you are extremely disappointed about the cancellation of the PLMA show this month, please take us through the thought process in developing PLMA Live Presents: Private Label Week. PD: Much as suppliers are stepping up with innovative solutions, PLMA has had to innovate as well. We knew we had to deliver for the sake of members who have the same need as ever to
continue building their business under these most extraordinary circumstances. The same is true for retailers. Their need for reliable sources of every kind of product doesn’t simply disappear when the market environment changes, and the capabilities of PLMA members are not something easily replaceable. Everyone knows the show must go on and it will go on — virtually. SB: Tell us about Private Label Week. What makes this event unique? PD: The commitment to creating a digital experience that could live up to the high standards of PLMA’s inperson events is not something that can be taken lightly. We knew the minute we decided to pivot that it had to be entirely unique compared to other virtual events. The fact is that PLMA has been exploring development of a proprietary digital exhibitor platform for a number of years — one that is created specifically for our industry and tailored expressly to serve the needs of store brand manufacturers, retailers and industry professionals. Among the most unique features in taking the PLMA experience online is the ability to welcome buyers and suppliers from around the globe. And since the show — from a buyer’s perspective — is all about products, we’re making everything about Private Label Week category-driven, by extending the event over five days of activity and devoting each day to specific departments and products. Throughout each day of the event, PLMA will also be offering online a full schedule of new and original video programming from our PLMA Live! news desk and the entire PLMA Live! news team, including category-specific trend reports, research, opinions and perspectives from top industry speakers. Private Label Week is also where we plan to announce and present the retail winners of PLMA’s annual Salute to Excellence Awards for new products and innovation across dozens of food and nonfood categories.
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“The fact is that PLMA has been exploring development of a proprietary digital exhibitor platform for a number of years — one that is created specifically for our industry and tailored expressly to serve the needs of store brand manufacturers, retailers and industry professionals.” SB: What should retailers expect from PL Week? Why does it matter to retailers? PD: In many respects, Private Label Week was designed to bring to retailers what they always needed and gravitated to from PLMA’s inperson events. They can find new suppliers, but also discover the same wide range of products, including the
newest products available from established suppliers who represent the kind of selection, depth and quality of private label products that they’ve come to expect from PLMA. At the start of a new year, it matters a great deal to retailers who have been unable to attend events or hold face-to-face meetings. Retailers are calling every day looking for new suppliers. Many retailers woke up to new prospects in the midst of difficulties, as consumers are open to trying new things and presenting increasing opportunities to expand their private label offering. SB: What do you hope is the takeaway from the event for both retailers and suppliers? PD: Products! Products! Products! That is the number one reason why retailers look to PLMA and PLMA member manufacturers. Every possible effort is being made to ensure Private Label Week will not disappoint in this regard. Of course, everybody also recognizes that products don’t make or sell themselves. Making new connections and exchanging digital business cards; find-
ing new suppliers if you’re a retailer; building new customer relationships if you’re a manufacturer; and expanding networks of talent for everyone builds a career on developing, creating and supporting retailers’ private brands — at the end of the day, the industry is all about the people who make it work. SB: Tell us the plan for the traditional show next November. PD: The year 2020 has been a journey that ultimately is going to bring us to light at the end of the tunnel. There’s every indication pointing to a strong rebound for in-person events in the year ahead. Everything we learned from planning for the canceled November PLMA show, we plan to implement as best practices for when we can be back on-site in Chicago next November. We are expecting to be back on track with the continuing growth of the show and the industry as a whole, bringing all the newest products and trends once again to the Donald E. Stephens Convention Center. You can be sure we are also going to be bringing the best of the digital experience to the in-person trade show in 2021. SB
www.storebrands.com
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QUESTIONS/ANSWERS
MASSIMO ZANETTI BEVERAGE USA SIZES UP THE INDUSTRY THE PREMIER COFFEE SUPPLIER TALKS TRENDS IN STORE BRAND COFFEE
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lay Dockery, vice president of corporate brands for Massimo Zanetti Beverage USA, said that differentiation, not duplication, makes the difference in the private label industry. In a chat with Store Brands, Dockery talks about the state of the coffee business and how retailers can benefit from building a stronger relationship with his company.
STORE BRANDS: Tell us about Massimo Zanetti and its history. CLAY DOCKERY: Massimo Zanetti Beverage USA is a division of the Massimo Zanetti Group. We are headquartered in Treviso, Italy, and we have a worldwide footprint. In the United States, we serve the in-home coffee drinkers with brands (Chock Full O’Nuts, Hills Bros, Hills Bros Cappuccino, MJB and Kauai). We are also one of the largest private brand roasters in the United States, serving all segments of the dry coffee category. MZB also serves the away-fromhome markets (café’s, hospitality, office coffee, etc.). SB: What products is the company currently pushing in the private label world? 20
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CD: Private label is no longer about duplication, but rather differentiation. We have developed strong relationships with our retail partners, and we seek to maximize their private label sales through deep analysis of trends of their shoppers. Each retailer has nuances in their portfolio that we seek to understand and develop products to help drive sales. SB: What do retailers need to do to maximize sales from these products in terms of merchandising and marketing? CD: The coffee category is heavily promoted, both through frequency and deep discounting. It is always our advice to retailers to target their fair share of merchandising support and consider price shielding when brands
are on sale. Social media is the new playground for marketing of brands and this can give a private brand a decided advantage given that retailers have tremendous knowledge of their shoppers and know what the motivation to purchase represents. SB: What's the benefit for the retailer from getting involved with your company and its assortment of products? CD: At MZB, we have a simple proposition. We are more than a roaster. We provide great products and outstanding customer service, but most importantly we don’t consider having made a sale until a product we produce for our retail partner is on the other side of the cash register.
“We have developed strong relationships with our retail partners. Each retailer has nuances in their portfolio that we seek to understand and develop products to help drive sales.” SB: Is there anything new coming down the line? CD:As consumer tastes evolve, we are ready to assist our retail partners in identification of those trends along with solutions to capture those sales. Today’s consumer no longer buys a product. They buy a story. And that story must be authentic. Treatment of all of the individuals throughout the value chain is critical as is environmentally sound packaging. Thirdparty certification to ensure equity back to farmers and all within the producing communities continues to see tremendous growth. SB
www.storebrands.com
11/3/20 7:00 PM
With the introduction of Bee & Willow, its first owned brand, alongside key exec moves, the chain seems to have a comfortable future
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t might be safe to say, at this point, that Target’s private label merchandising strategies — including its private label approach — are starting to pay off — at Bed, Bath & Beyond. Just 13 months after Bed, Bath & Beyond named former Target chief merchant Mark Tritton its CEO, tasking him with rebuilding its sales and image, the results are pretty clear: BB&B is turning it around, helped, in part, to a growing emphasis on its private label merchandising plans. Target has been a master with its exclusive and own brand lines, including in the home category dating back more than seven years ago with the launch of Threshold. For Bed Bath & Beyond, the retailer unveiled its first private brand — Bee & Willow Home — in March of 2019. With Tritton now at the helm and bringing his Target experience to bear on the
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home retailer, there is a lot more private brand activity to come — and executives said it would play an integral role in the resurgence of BB&B over the next three years as the company looks to reshape its in-store and online strategies, modernize its supply chain and overhaul its assortment. Ahead of its inaugural Investor Day on Oct. 28, the company announced that it would be launching 10 owned brands in the next 18 months. The brands will span destination categories with the aim of tripling its owned brand penetration over three years. “We have made tremendous progress this year to strengthen our financial position, focus our portfolio in core home, baby, beauty and wellness markets, rebuild our executive team and launch a series of omnichannel services to win back customers,” Tritton said as part of the owned brand announcement. www.storebrands.com
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In its second-quarter report, Union, N.J.-based Bed Bath & Beyond reported its first same-store sales growth in four years, registering a 6% increase for the quarter ended Aug. 29. While a whopping 89% increase in digital sales drove the lift, saving a 12% drop inside stores, the retailer reported that it expects to grow physical store sales by building more sourcing and supply chain opportunities around its “pursuit of store brands.” In this area, Tritton’s reputation precedes him. When he departed Target, CEO Brian Cornell said that Tritton had “re-energized its own brands portolio,” calling it “one of his most meaningful contributions.” With Bed Bath & Beyond, Tritton isn’t alone, but has brought in retail vets with extensive experience building and growing private brands. In July, the retailer named Neil Lick its senior vice president of owned brands, bringing aboard 22 years of experience at Williams Sonoma. Similarly, Bed Bath & Beyond named Joe Hartsig — formerly Walgreens’ chief merchant 22
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with experience leading private brand operations and digital merchandising strategy — executive vice president, chief merchandising officer and president of Harmon Stores. Brittain Ladd, an author and consultant who has worked with several mass chain and home retailers, said the chain, with 1,500 stores throughout the U.S. and Canada (about 1,000 BB&B branded stores), will flat out not be a viable retailer without a strategic private label program. “I believe there should be in-store and online-only private label brands,” he said. “However, what BB&B needs most are strategic partnerships to create additional value. I also believe BB&B should be willing to think big when it comes to the category of ‘Beyond.’” Ladd said the retailer’s shortcoming before Tritton arrived was a lack of differentiated merchandising. “BB&B needs to launch brands that immediately connect with consumers across different demographics,” he added. “The best example of a retailer that has done a fabulous job in their private label program is Target.”
www.storebrands.com
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COVER STORY
Bee & Willow Home, BB&B’s first-ever private label line aims to have the whole house covered with a warm line of accessible home décor, furniture, decorative rugs, art, pillows and accessories. The collection has a large range of items to suit the living room, dining room, bathroom and bedrooms. The retailer described the style of the products at launch last year as providing new takes on the classic Windsor, barnstyle details, emblematic wingback forms and an interpretation of modern farmhouse. “The inspiration for Bee & Willow Home is a contemporized approach to the idyllic, rustic style of décor. We identified the unique stylistic thread that runs through all farmhouses and cottages from Maine to Key West, the Great Plains to Venice Beach that evokes an honest, restorative and timeless feel,” said Barbara Weston, director of global trend at Bed Bath & Beyond, at launch. “The materials in the collections include an eclectic blend of rustic, distressed and time-loved transitional décor pieces combined with distressed stone, wood and metal. Customers will be able to find quality investment pieces.” In 165 of its stores, large furniture vignette displays will be set up to showcase the Bee & Willow furniture items.
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Currently, all stores merchandise the owned brand items in several departments with oversized wall signage and graphics that call out their exclusivity. Joining Bee & Willow in September 2019, Bed Bath & Beyond launched a second owned brand line called One Kings Lane Open House, an exclusive brand that came with the acquisition of the home décor business of the same name. The line includes refined furniture from large-scale sofas to tables and bookcases. It also has accessories like throw pillows, mirrors, rugs, accent pieces and more. Though Bed Bath & Beyond sold off One Kings Lane in April, the company still sells One Kings Lane Open House as an exclusive brand. With the 10 forthcoming owned brands, the retailer said it is focusing on value-tier products, as well as products that can create destinations, both in stores and online. At the same time, BB&B is hoping to deliver $200 to $250 million in sourcing benefits over the next three years by reducing suppliers and negotiating with existing vendors. Ladd said he sees the company competing with the likes of IKEA, Walmart, Wayfair, Williams Sonoma, Target, Amazon and Kohl’s. The company also has room to grow into other categories. Nicolas Merlen, national sales manager at the chocolate
www.storebrands.com
11/3/20 5:15 PM
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COVER STORY
producer Chocmod, based in Fort Lee, N.J., said the retailer could use owned brand candy and gift assortments, ideal for the front of the store. He said the retailer is looking for premium products and that an exclusive gift or candy section could grow impulse buys, “only carrying clean ingredients and a premium packaging execution.” In his new role leading owned brands, Lick is working to develop the new owned brand portfolio for 2021. During his announcement, the company said it would be looking to expand its store brand products particularly in bed, bath and kitchen products, where it holds its largest market share. “To rebuild Bed Bath & Beyond’s authority as the leading omnichannel home retailer, we are reimagining how we develop and curate an owned brand assortment,” Hartsig said when Lick joined the company. “Neil has deep experience building brands that people love and will spearhead our new owned brand team to curate and develop a portfolio of truly differentiated brands that deepen our penetration in our core categories and our connection with our loyal customers.” When the newest private brands launch in 2021, it is possible that they will be digital-focused. Lick’s appointment comes on the heels of Bed Bath & Beyond announcing a plan to close more than one-fifth of its store footprint — roughly 200 stores — over the next two years as part of its Store Network Optimization Project and digital transformation. In the Q2 report, BB&B said the planned closures expect to save the company $100 million in annualized savings. The company said it is also going to continue to stress its new curbside pick-up and buy online, pick-up in-store services, and work to further provide a more personalized shopping experience. Ethan Chernofsky, vice president of Placer.ai, looked closely at traffic patterns at the retailer and said it clearly is in the midst of a strong recovery. “While visits were down 83.9% in May and 33% in June year over year, they had moved within 19% of 2019 levels by September,” he said. “This impressive performance is predicated on a number 26
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of factors including the wider surge the home goods sector is seeing, and the continued impact of a strategic reorientation that the brand has been undergoing since the announcement of new leadership.” Chernofsky said the early stages of the pandemic were not kind to the retailer, which had to close stores and saw visits bottom out in April, but its recent performance is hinting at the potential for a very strong end to the year. “Several key competitors, like Pier 1, are in the midst of closing stores leaving vacuums that Bed Bath & Beyond is ideally positioned to fill,” he said. “Even more, the home goods sector looks to be one of the most exciting in the coming holiday period.” Customers seem to be happy with where Bed Bath & Beyond is heading, too, including its early owned brands. According to the American Customer Satisfaction Index, which has been measuring customer satisfaction on a scale from zero to 100 for more than 25 years, the retailer sat comfortably at 80. David VanAmburg, managing director at ACSI, said the retailer gained a point despite the recent store closings. He said that Bed Bath & Beyond consistently scores well for its layout, variety of products, inventory, website satisfaction, and mobile app quality. As for its owned brand items, he said the products scored higher than the industry average. “The company was in such bad shape that nothing short of a transformation by CEO Mark Tritton would suffice,” Ladd said. “Some people say BB&B is in a difficult position, but I believe the company has been reborn and the executive team should feel energized.” Chernofsky echoes the momentum. “The brand was not entering into 2020 in a strong position, several competitors are rising and even though the company is recovering well, visits are still down significantly year over year,” he said. “Yet, the company’s new leadership team generated excitement from the idea that it could apply ‘Target-style’ lessons to the home goods giant. And the fact that the latter strategy is so well aligned with the brand’s strengths is already a huge testament to their future potential.”
www.storebrands.com
11/3/20 5:15 PM
Store Brands Magazine 2020.qxp_Layout 1 10/6/20 2:46 PM Page 1
Coming in 2021 February 1-5 The Private Label Manufacturers Association launches a new industry event, providing five days of business opportunities tailored expressly for store brand manufacturers, retailers and industry professionals. Private Label Week combines a series of focused, online category trade shows with in-depth reports on major retailing and product trends from the PLMALive! editorial team. The category trade shows allow visitors to search for products and network with exhibitors using live video and a suite of business communication tools.
www.PLWEEK.com Presented by the Private Label Manufacturers Association Telephone (212) 972-3131 email: info@plma.com
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IGA UNDERGOES BRAND REFRESH THE MODERN REDESIGN OF ITS PRIVATE LABEL PORTFOLIO ALSO SETS THE STAGE FOR NEW LINE EXTENSIONS IN THE NEXT TWO YEARS By Dan Ochwat
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t has been more than 10 years since the Independent Grocers Alliance updated its store brand look, but in September the grocery trade association — which represents thousands of independent retailers globally — kicked off a modern redesign, backed by a massive visual merchandising program and digital marketing effort. The September launch saw roughly half of its 1,200 redesigned IGA Exclusive Brand products hit shelves while the other half will roll out over the months ahead. The redesign also anchors the store brand for new line extensions like a possible plant-based line that could launch in the next two years. IGA Global’s brand overhaul began with two key hires: Robin Groscurth, director of exclusive brands, joined the Chicagobased association roughly 18 months ago, after launching Fresh Thyme’s first-ever private label program. Two years earlier, IGA Global named John Ross its CEO, who came from several years with Inmar and before that Shopper Sciences, a data company and retail media agency, respectively. He also had retail experience at Home Depot and hard goods stores. With that combined experience, it’s no surprise that the reintroduction of the IGA Exclusive Brand would land with
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Robin Groscurth, director of exclusive brands
John Ross, CEO
such style and a comprehensive hyper-local marketing program — both in-store and digitally. “We relaunched the brand under a new tagline called, ‘Local Equals Fresh,’” said Ross. “Each retailer, they’re independents, which means we are a case study in hyperlocal marketing. That’s the thing that big brands have trouble doing. They want to be more locally engaged, but there’s so much efficiency in having a homogenous assortment that it’s very hard for them to do.” It’s the opposite for IGA, he said. “If you’ve got an urban store, if you’ve got a store that serves a Hispanic community or an African American community or a Polish community, if you go to a store that’s intensely rural or suburban, each of those stores is going to have a unique assortment, and they’re going to market in different ways,” he added. In total, IGA works with more than 1,200 independent grocery stores in the United States and close to 5,000 in 30 countries around the world. The retailers pick and choose which IGA Exclusive Brand items fit their store and get merchandising materials to promote the items, with an emphasis on items being locally sourced.
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11/3/20 5:18 PM
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The Redesign Ross said the first red IGA letters began appearing on its own brand of packaging more than 50 years ago, possibly even before the concept of private label was really known. IGA formed in 1926, emerging as a way to battle the Great Atlantic & Pacific Tea company, the dominant national chain at the time. It was a buying cooperative that did futures trading, buying commodity products, and innovated in many ways since those early days. More than 100 years later, it’s still going strong. Groscurth kept the association’s history in mind when embarking on a full-scale redesign, wanting to create something modern but not shake up any of the built-in trust that the
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brand had earned over the years. She said she wanted the look to be “cutting edge” that leveraged the brand’s heritage through the signature trademark IGA, a vivid red craft paper color and top-notch photography. Those are the key elements in the redesign, represented in the assortment the company calls its core program of items. But the packaging can become a bit more playful as it expands out into a custom program for such novelty categories as ice cream, for example, where brand-new characters can be created and added to the packaging. The same goes for specialty line extensions (including plant-based or organic) that could come over the next year or two. The structure is a new tiered strategy of store brand lines, anchored by the core program look and the IGA logo. “As long as we have our IGA trademark, our label, our logo on there, the consumer is going to gravitate,” Groscurth added. She also said the thinking behind a tiered approach was to make IGA competitive against national brands and other national brand equivalents. “I said to myself, ‘Hey, there’s no reason that we can’t be better than the rest.’ We have trust, value and quality that our consumers just love us for, and so this gave us the ability to say, ‘in the dairy set, I want to have this modern, clean look against the cottage cheeses of the world,’ and these brand loyal categories, where people continually shop there, I wanted to be better. I want to look cool. I want to be modern,” she said. Prior to the revamp, IGA studied the brand, using market researchers and its agency of choice, Porchlight, Atlanta. The market research found that, while independents won’t win the lowest-price-possible game, scores on trust and quality were through the roof, Ross said. That included loyalty in the store brand, where just under a third of IGA shoppers were found to be shopping the store because of its private label. In March, IGA saw a 15% increase in orders for its store brands, compared with a year ago, so there has been a lot of momentum around its store brand program, and it was sorely in need of an update. The coronavirus pandemic delayed the initial summer launch to begin in September. “The last thing we wanted to do was have retailers have to distract from running 30, 40, 50% comp days to put up new signs and have to do a bunch of stuff,” Ross said. “There was a benefit in that the pandemic stock-up shopping helped sell-through a bunch of old merchandise, making room for the redesigned packages.” He continued: “But the retailers are tired. It’s been an exhausting year. And with turnover in the stores and now a resurgence of COVID going on in many markets, it’s still hard, but we went ahead and launched, and the feedback from the retailers has been great. They’re really excited to see the product.”
www.storebrands.com
11/3/20 5:18 PM
ADVERTORIAL
Do you think the timing is right for TUTTOFOOD? It’s time to look ahead. Many analysts predict that recovery will already begin at the end of this year, though they all agree that the real relaunch will come next year. TUTTOFOOD, the exhibition dedicated to a quality Italian and international agricultural and food industry, is already working hard to prepare its 2021 edition – set to take place at Fiera Milano from May 17 – 20, will see exhibitors and buyers travel from all over the world in Italy, to focus on innovation, strategies and the future of the supply chain. What makes this event special? As ever, TUTTOFOOD will showcase the world of retail and mass
distribution. Making a welcome return is Retail Plaza, a stage that will host key players from the world of retail and mass distribution as they present best practices and the latest trends. The project will benefit from scientific coordination. New features for 2021 also include an area dedicated to micro-breweries, a growing segment that focuses on the very targets who seek quality foods. In Retail Plaza, which benefits from scientific coordination, trade visitors can interact with a professional audience to generate new inspiration and business ideas. A winning formula that, over the years, has seen the involvement of organizations such as Amazon, Carrefour, Végé
Group, Eataly, Easy Coop, Iper, and Unes with the Il Viaggiator Goloso or Metro brand. Tell us about some new features in terms of trade sectors and innovation. One new feature at TUTTOFOOD 2021 is TUTTOFRUIT, an area dedicated to fresh fruit and vegetables and innovation in the IV and V ranges, which value fruit and vegetable products with high convenience. The 2021 edition also focuses on the organic development of the latest sectors launched – TUTTOWINE, TUTTODIGITAL, and TUTTOHEALTH – as well as on consolidating more traditional sectors (I would list them all).
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Omnichannel Attack Helping drum up that excitement is an ongoing, world-class visual merchandising program in stores, and a digital program that includes rich media ads around the store brand items serving 30 million shoppers. The displays include wobblers, window signage, signage at the registers, ceiling signage, endcap displays, shelf toppers and more, each with its own flair and delivering a message of value and local. Displays will change out quarterly, emphasizing holidays or promoting recipes that the store brands can be used to make. In fact, one of the nuanced updates to the packaging include on-package recipes. Groscurth said she wanted to educate shoppers on what is inside the package, be more transparent on the label, but also added fun illustrations where possible around the UPC code like the image of bread popping out of a code. “I want a consumer to walk down the aisle and see our product pop out on the shelf,” she noted. “I don’t want it to blend in with the rest of the brands.” The packaging works in concert with the displays. Signage showing the new product calls out the store’s “Double Money Back Guarantee,” “Quality Without Compromise,” and “Trusted by IGA Families for more than 100 years,” and more. There are category-specific displays too, all part of an entire system that the independent retailers can select and put up. Digitally, the group is working with influencers to post about the new look and more, and rich media ads are being integrated into its digital circular that goes out to 30 million shoppers. The digital ad just launched a few years ago and has eyes on 50 million users. The ad is delivered to a shopper based on their zip code, so each ad is tailored to that community delivering local media. National ads are also mixed in with offers for local stores and run alongside store brand offers but in deeply engaging video ads like syrup swirling over fluffy IGA brand pancakes. Themed ads in the digital ad also sync up with in-store themed signage, and QR codes can be scanned in stores to unlock recipes, and more. The promotional schedule, for example, includes November materials celebrating “Family Meals Made Easy” with a recipe-based sweepstakes, and influencers promoting the contest. Themed promotions and merchandising around the store brand redesign also run alongside merchandising elements that scream IGA’s local sourcing and remind shoppers that the stores are sourcing from local farmers. “I’m so proud of the progress we’re making, of harnessing the idea of local in a bigger and bolder way,” Ross said. “Our private label is a combination of things we buy and things we make, and we are arming the retailer with the same tools that a national brand would have, that they can deploy on 32
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products that create or bake or cook inside their store.” The history of independent grocers is a humble culture, Ross said. “We’re not used to running around beating our chests and saying all these great things that we do, the fact that we bake fresh every morning or make our own doughnuts or grind our own sausage,” he said. “We don’t tell our own story. And yet when you do tell your story, when you tell people that the fruit wasn’t cut in a factory four days ago, but it was cut fresh this morning, sales go up. And it is just amazing how much what we actually do is exactly what shoppers want.”
Constant Communication As the revamped store brand continues to launch to its independent retailers and explore expansion, the IGA Global team must be in constant communication with the retailers, wholesalers and suppliers. Just as with the redesign, Groscurth presented it to leadership, then to wholesalers, as well as a national advisory board, all sharing feedback and insights on what hurdles they are facing in the industry and where they see opportunities. IGA prides itself on having multiple product suppliers across categories, too, something that did help during the pandemic when it was a challenge keeping product in stock, but also requires constant communication. “When I came on board, the goal was communication, communication, communication — what we’re doing, when we’re doing it, and the expectations that we have from suppliers during this transition,” she said. Groscurth held quarterly meetings with suppliers, sharing what categories were being redesigned and products being worked on so nothing felt like it was coming out of left field to them. Of course, the pandemic has shifted things as well, streamlining efficiencies in some categories to focus on seven SKUs rather than 17, for example, to maintain supply and demand and that’s impacted suppliers. The lack of trade events has also impacted Groscurth’s ability to meet and innovate with new suppliers, but she’s always looking for strategic relationships with suppliers. “I want to work with suppliers that think of us first, that want to come to the table with innovation. They want to come to the table with change and how to do things better… and where they see our brand, our categories growing in the next five years,” she said. Ross added that the reality is there are less independent private label brands today, and IGA is fortunate to be one of the strongest. “But we suffer that same pressure,” he said. “The only thing that we can do is to ensure that we’ve got a great consumer experience, best-in-class packaging, and we invest in marketing to drive volume behind the brand.”
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NEW PRODUCTS THE PRIVATE LABEL TRADE SHOW HAD TO BE POSTPONED, AND A VIRTUAL EVENT IS BEING PLANNED FOR FEBRUARY. HERE’S A SHOWCASE OF NEW PRODUCTS IN THE INTERIM By editorial staff
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s Store Brands does every November, this month’s issue would have been dedicated to previewing the biggest event in private label — the Private Label Manufacturers Association’s Private Label Trade Show — an event that for four decades has brought suppliers and retailers together to further partnerships, start new ones and learn more together about the industry at large. However, like many trade events, the coronavirus pandemic has canceled the in-person trade show experience. PLMA has pivoted to put together a week-long virtual trade show event that will run Feb. 1 through 5. The event is being called “PLMA Live! Private Label Week.” PLMA is dedicating each day of the five-day event to a different product category. They have listed them as: home and household products (Feb. 1 and 2), beverages and center store (Feb. 2 to 3), health and beauty products (Feb. 3 to 4), fresh,
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frozen and refrigerated products (Feb. 4 to 5), and a special show day on the final day. The event will connect retailers and store brand manufacturers virtually by using a proprietary platform with video and chat tools. A “supplier booth,” so to speak, will center on a new product from a company and as retailers view information on that product they will be able to enable a video call for a face-to-face meeting. Retailers will walk the virtual halls by using a search tool on the platform to look by category and even keywords like “free-from products.” The week-long event also will have running videos and presentations that attendees can opt into viewing for its educational component. For its version of a PLMA preview, Store Brands had to pivot as well. In the spirit of the annual preview, editors reached out to its list of suppliers and asked for hot new products. Here’s what companies have to offer:
Bellei Italy A leading premium balsamic condiment in Italy now is available stateside — Bellei’s Sua Maestra Denso Dolce. The balsamic vinegar is packed in 6/250-ml (8.45-oz.) bottles and in a country display carton to increase the overall balsamic vinegar sales volume in retail stores. The company maintains inventory in Fairfield, N.J. Contact: Alangreen@emilianway.com; 201.207.9770
Cape Foods Cape Town, South Africa Launched in October, Cape Foods introduced a new range of Himalayan salt seasonings in four flavors. The health benefits and visual appeal of Himalayan salt has made it a popular choice in households across the world. Cape Foods is producing it in convenient, cost-effective PET shakers in an unrefined Himalayan salt, a Himalayan salt with herbs, Himalayan salt with harlic, and Himalayan salt with chili. Prices range between $1.99 and $2.49, which the company said offers retailers margins in excess of 40%. Cape Foods sources directly from a factory in Cape Town or from the company’s importer in New Jersey. Contact: gerhard@capefoods.co.za
Chocmod USA Fort Lee, N.J. A chocolatier for 72 years, the company is showcasing fancy new specialty tins of its chocolate truffles, seasonal Easter candy and new fair trade chocolate marshmallows. Details include:
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● Collector truffles tins in 9-oz. and 16-oz. sizes, launching this month in beautiful colors and designs. The French truffles are palm oil free, all natural, gluten free and Kosher; and ● Organic and fair-trade marshmallows in a 3.5-oz. doypack and Easter Bunny Marshmallows in a 2.82-oz. doypack will both launch in January 2021. The dome-shaped marshmallows and the Easter Bunny-shaped versions are palm oil free, all natural, GMO free and come in resealable packages for on-the-go enjoyment.
The gourmet dough in each was designed to help customers easily stretch it to any shape and size. The round and rectangle gourmet pizza kits come with sauce and cheese. All customers need are their favorite topppings. The line includes three 12-oz. dough kits and a four-pack of retail dough balls that can make anything from pizza and Stromboli to desserts.
Contact: nicolas.merlen@chocmodusa.com
Fort Wayne, Ind. Tree-free and renewable, Kanak has introduced a new line of compostable plates, platters and bowls called Sustainables.
DeIorio’s Utica, N.Y. Launched in September, DeIorio’s unveiled four new Gourmet Pizza Kits.
Contact: deiorios.com; 800.649.7612
Kanak Naturals
The single-use tableware is available for private label and the plates and bowls are considered a national brand equivalent to Chinet, per the company. Sustainables are made from 100% sugarcane that the company said offers industry-leading strength and performance. The tableware can handle heavy, greasy meals without buckling or leaking. A classic design and trimmed edges add an improved appearance. The tableware is immediately available. All of Kanak’s products are compostable, certified for quality, cut and grease resistant, microwavable and freezer safe. Contact: 260. 490.4790
At Seneca, we're still doing things the way we always have - the right way. Think globally, grow locally. 99%
of our produce is grown by AMERICAN FARMERS
Please visit www.SenecaFoods.com to learn more about our company, people and products.
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BUY YO UR S UCCESS 1. Just call the leading supplier of instant coffee and coffee drinks. 2. Choose your favourite from a wide range of tailor-made blends of spray-dried, agglomerated and freeze-dried coffee. 3. Take your products in your individually designed packaging to the market-place. 4. Relax and see what will happen.
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LQC Norwood, Mass. Luong Quoi Coconut is a Vietnamese company that distributes a range of Coco Goods products in the United States that are 100% organic. The company said it works closely with every partner in the supply chain from the farmer growing the coconuts, to caring for the welfare of its employees, to the logistics and transport companies, and to the end retailers. Four Coco Goods products launched in October: l Organic virgin coconut oil (15 oz., 30 oz., 60 oz.) — Improves dry skin or damaged hair, and is good for makeup removal, moisturizing, lip balm, shaving cream and massage oil; l Organic coconut cream (13.5 oz.) — A dairy-free, vegan alternative to coconut milk, containing less water for a thicker, more paste-like consistency. The cream is great for cooking or a dessert topping; l Organic coconut milk — An alternative to dairy milk, coconut milk contains beneficial fat called lauric acid, a medium-chain fatty acid that’s absorbed and used by the body for energy. It’s a good drink for workouts and good for cooking; and l Organic coconut milk lite — A version with 60% fewer calories and fat than regular coconut milk, made from the pressing of fresh, ripe coconut meat. Contact: huck.burke@lqccorp.com; 833. 262.6466
Marich Confectionery Hollister, Calif. An experienced manufacturing partner for custom, co-manufactured and private label chocolates and candies, Marich is highlighting its range of “pancrafted” panned confections and starch-molded products that can be paired with 38
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many packaging styles. The company has 36 years of experience in producing products from initial concept to development, launch and ongoing order fulfillment. Marich is a second-generation family business creating confectionery products with skills, knowledge and an ability to help retailers differentiate in the marketplace.
such as reduced plastics use as compared to rigid packaging, less energy required to produce and ship versus traditional rigid packaging, and a lightweight, ergonomic cap design. The pouch is available for both premade and horizontal form-fill-seal applications. Contact: scholleipn.com; 708.562.7290
Contact: Marich.com; 800.624.7055
Natural Habitats Hollister, Calif. Primarily a producer of organic palm oil for B2B industrial clients, Natural Habitats has developed two new plantbased products under its smaller private brand portfolio business. The products include a plant-based buttery spread that uses a blend of organic palm fruit and sunflower oils to create a creamy, spreadable, buttery delicious flavor. The other product is a organic plant-based shortening that is an excellent vegan replacement for butter in pastries and baking. Both products are sustainably sourced. The cost for the spread is $2.75 to 3.00 per unit with an MSRP of $4.99 per unit. The cost of the shortening is $2.20 to 2.50 per unit, with an MSRP of $3.79 per unit. Contact: kyle.jerome@naturalhabitats; 720.490.8734
Scholle IPN Northlake, Ill. Scholle IPN is introducing a pouch format for condiments and toppings. The pouch is designed with a corner spout and flip-top cap for improved dispensing ergonomics. The pouch also easily sits upright in the refrigerator for easy storing and access for consumers. The spout has a pull-tab to ensure tamper evidence from fill to retail to home. The new condiment pouch also has added sustainability benefits
Season Brand Newark, N.J. Season Brand offers a wide range of sardines, mackerel and anchovies for private label opportunities. The company supplies a wide range of items from value to premium products at all price points, with more than 20 items available right away. The company noted that it offers flexible minimums. Season Brand also handles complete food transparency, and BRC factory audits. The company has more than 99 years of success supplying quality products. Contact: lance.reiter@seasonproducts.com; 201.553.1100
Venus Wafers Hingham, Mass. Launched Oct. 15, Venus Wafers unveiled new Mariner Mini Flatbreads just in time for the holidays. The products are packaged in vibrant, colorful cello-wrapped 6.5oz. trays and come in three flavors: sea salt sourdough, everything, and sesame. Baked with Venus’ authentic flatbread recipes, the mini flatbreads have unique flavor and a crisp taste. The Mariner Mini Flatbread is the perfect size for snacking to complement a favorite cheese, spread, soup, or anytime snack, the company said. The Mariner Mini Flatbreads have received certifications from the nonGMO Project, and are vegan and Kosher. The retail price is $3.99. Contact: janderko@venuswafers.com; 781.740.1002
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11/3/20 5:22 PM
STORE BRANDS l ITALIAN IMPORTS
LOVE, ITALIAN STYLE PRIVATE LABEL SUPPLIERS WANT A PIECE OF THE ITALIAN FOOD MARKET, BUT IT WILL TAKE A BIG EMPHASIS ON VARIETY AND QUALITY TO GET CONSUMERS TO NOTICE By David Salazar
C
an private label get a larger slice of America’s love for Italian food? It’s no secret that American’s love their Italian specialties. In a 2019 YouGov survey, 88% of Americans said that they like Italian food, making it the country’s most popular non-American type of cuisine. While many Americans are most familiar with pizza, there also is the fact that pasta, sauces and olive oil have become pantry staples nationwide, and the profile of these items has only been increased by the pandemic — in particular those sourced from Italy. Earlier this year, Italian market research firm Doxa carried out a survey on behalf of the Italian Food Union and the ICE Agency that found 56% of American respondents saying they eat consumer pasta between one and four times per week. One in four of the 5,000 people surveyed across Italy, Germany, France, the United Kingdom and the U.S. reported increasing their pasta consumption during the COVID-19 lockdown. Additionally, pasta consumption increased by 40% in the U.S., Canada, Australia and Romania, outpacing the growth of such countries as the United Kingdom and the Netherlands. The International Pasta Association noted that, per the Italian Food Union, 1 in 4 pasta dishes in the world is Italian, and
Italian pasta exports have seen 25% growth in the first six months of 2020. That’s growth on top of the export record that Italy set in 2019, when it grew exports by 7.5% over 2018. So how does private label cash in on this trend? The answer, many say, is to encourage retailers who are looking to build out their Italian imported product selection — and make some money — to offer more variety and different price points in that section of products. That will allow options for those shoppers who might not be big spenders but still insist on quality and value. “Retailers generally have low, mid and upper tiers, and it’s inside that mid-tier where they find a lot of value for imports,” said Anthony Laudiero, vice president of operations at Consorzi Foods, which has headquarters in New York and Manassas, Va. The family-owned company deals 99% in private label, with a majority of their imports being dry pasta in the mid- to upper-tier product range. The company also imports canned tomatoes from Southern Italy and olive oils, both European Union blends and 100% extra virgin olive oil. Most recently and notably, Target introduced Good & Gather Signature, an offshoot of the private brand Good & Gather it debuted last fall. The line includes an extensive selection of imported pastas and sauces. Many of the price www.storebrands.com
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STORE BRANDS l ITALIAN IMPORTS points are slightly higher than the retailer’s standard Good & Gather selections, offering a slightly more upscale product at a price that still won’t break the bank. Laudiero said that retailers are increasingly realizing that they are able to import products from Italy to offer a high-quality product in a way that maintains similar margins to those seen by retailers who use domestic products. Many retailers might hear the term “import” and immediately start to worry about how bringing in products from Italy might impact their bottom line. Laudiero said that imported products can offer a similar value to domestic products, while bringing their made-inItaly bona fides to the table. “The great thing about Italy is that there are no import tariffs,” he said. “So Italian organic pasta can actually compete on a price basis with U.S. organic pasta. On organic, there’s a big opportunity, it offers the retailer similar, maybe higher margins because it’s made in Italy and they have an opportunity to offer a higher-quality product at a similar price.” Organic products in particular are a growing part of a retailer’s private brand offerings, with Kroger and Albertsons standing out as leaders of the pack as they also expand into less mainstream pasta shapes or different methods of creating it, including Bronze-cut options, which food site Epicurious explains in a 2017 article is a more traditional method of pasta cutting that largely was replaced by Teflon dies for cost reasons. “Bronze-cut pastas are a little coarser, a little more porous — and, thus, a better surface for sauces to cling to,” the report said. All of the Good & Gather Signature Pastas are bronze cut and includes several less common cuts, including trofie, pennoni, orecchiette, lumaconi and tricolor arcobaleno and farfalle. Laudiero noted that such offerings can benefit retailers in two ways. “I think retailers are seeing this focus on more specialty and higher-end imported pasta, which gives them one, the ability for more margin,” he said. “And two, it helps build brand loyalty to that brand label in an indirect way — if they offer a special cut of pasta that other retailers don’t offer.” Beyond pasta, the market for imports from Italy also encompasses sauces and oils — two areas where Commack, N.Y.-based Botticelli Foods looks to assist retailers. Started in 2002, family-owned Botticelli began with a focus on olive oil and has expanded to include a range of sauces, vinegars and jarred specialty items. 40
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Botticelli recently rolled out an ad campaign to promote its eponymous branded items, but Joe Asaro, the company’s director of customer development, said that Botticelli is more broadly focused on bringing quality at a value to the space with its retail partners. “I think people are looking for more premium-quality offerings at the right price points, and that’s something that we firmly stand by,” Asaro said. “It’s all about accessibility as well as making sure you’re not the most expensive brand on the shelf and also providing that to our retail partners on the private label side of the business by providing premiumquality offerings that are very different from anything else you can really find in the store right now.” He said that when retailers work with companies that have solid sourcing capabilities overseas, they are able to keep up with emerging trends and subsequently add unique offerings to their private label portfolios. “Obviously, you need your mainstream flavors to drive productivity, but since we have multiple facilities in Italy and across Europe, we try to bring our private label partners different ideas,” he said. “This includes things that maybe aren’t available right now in a store in the United States, but we’re seeing as an emerging trend in Italy. These different types of formulations that we can provide bring that value and mainstream flavors, as well as a unique flavor that you wouldn’t often find in a private label brand to create some more value around the store brands that we’re supporting.” Among the unique imported offerings among Target’s Good & Gather Signature line is the Alfredo Truffle sauce and a Butternut Squash sauce, which accompany mainstays that include marinara, arrabiata and tomato and basil, and a Rustic Vegetable sauce. A critical part of distinguishing imported items in the midto upper tiers is making it stand out on the shelf. Laudiero said that he has seen retailers upgrade packaging to opaque matte plastic and outer paper with a plastic interior. “They’re obviously setting up a stand-alone brand like they’ve been doing for a while, but now they’re putting an effort into the brand, the story and the packaging design,” he said. “This is a trend that’s been happening for quite a few years and it doesn’t seem like everyone has caught on yet — but they’re getting there.” SB
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STORE BRANDS l PAPER PRODUCTS
ON A ROLL INCREASED CAPACITY WILL BE KEY TO CONTINUED SUCCESS IN PAPER PRODUCTS
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By Nora Caley
id private label save the household paper products category during the early stages of the COVID19 crisis? Some industry observers, including a number of retailers, said that private label and store brand paper products played a huge role in their ability to fulfill demand for this highly sought-after category in the spring and early summer. In fact, many retail executives said they turned to their private label paper products suppliers and pleaded with them to supply as much toilet paper, facial tissue, paper towels and napkins as possible. The result: “Let’s put it this way,” said one retailer. “If they did not come through I am not certain what I was going to do. Thankfully, our private label paper supplier turned the engines on and got us through those crazy days.” It was a crazy time, indeed. According to a March survey by Shopkick, 47% of consumers reported stocking up on essential items, and 85% of consumers agreed that “brand
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names do not matter during times like these.” What matters is availability, and manufacturers are working to make sure retailers have private label paper products in stock. “Business is very strong in this ‘new normal’ environment,” said John Sarraf, CEO of U.S. Alliance Paper, based in Edgewood, N.Y. “I believe we’re still in a pantry-loading environment. Consumer purchasing behavior continues to be skittish and panicky, and is subject to events in the news.” Consumers are buying more household paper products because they are not working in their commercial and office settings, and are spending more time at home. “We don’t see the work-at-home trend reversing anytime soon, so I can only assume that business will continue to be strong in the foreseeable future,” Sarraf said. U.S. Alliance Paper is helping retailers adapt to this spike in demand. “Our customer relationships have always been built on collaboration in an effort to help optimize their household paper aisles,” Sarraf said. “Working closely with our retailers is even more important today.”
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STORE BRANDS l PAPER PRODUCTS
The company is helping stores shift their focus. Before the pandemic, U.S. Alliance Paper was working with several retail customers on customization projects, including super-sized roll products, custom product bundles and specialty packs. Then the pandemic hit, supply chains were disrupted, and shoppers famously stripped the store shelves bare. Instead of custom or specialty products, retailers turned their attention to keeping their shelves stocked. “They are focusing on the basics and will gladly drop slower-moving SKUs in favor of a predictable source of standard household paper, especially roll products,” Sarraf said. “We can best help them by ramping up manufacturing and our case volume to make up for gaps left by other suppliers.” In August U.S. Alliance Paper announced its plants were running 24/7/365, and had installed robust medical screeners, separated workstations and staggered hours to keep workers safe.
FOCUSING ON SUPPLY CHAIN
Sarraf said the company plans to increase capacity in 2021 by adding computerized equipment and additional lines. “We feel that, as a company, we can best serve our retailers by delivering volume, predictably, when and where they need it,” he said. 44
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Other suppliers say their new products will be larger packages. Medford, N.Y.-based Global Tissue Group is launching larger pack sizes, additional mega roll offerings, and new ultra-premium category items. “Full private label paper programs are coming back on line as we reach the end of the year,” said Daniel David, executive vice president. The company is working with retailers on SKU rationalization to increase efficiencies and output and commitments to customer volumes. Innovation is not the most important driver in household paper product sales, according to a pre-pandemic report from Mintel. In its “Household Paper Products US February 2020” report, the market research firm noted that several paper towel brands had improved paperbased cleaning systems as part of an effort to compete with nonwoven wet wipes and sponges. Meanwhile facial tissue brands had created antiviral substrates and “phase change technology to cool sore noses.” Still, the Mintel report noted, consumers were not necessarily interested in these innovations from national brands. They were instead looking for store brands, so much so that private label brands outpaced growth of national brands. “Store brands have closed the quality gap to the point where many consumers no longer see a functional need for premiumpriced name brands,” the report authors wrote.
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According to IRI, a Chicago-based market research firm, for the 52 weeks ended Oct. 4, in total U.S. multioutlet stores, dollar sales of private label toilet paper increased 22.3% compared with the same period the previous year, while sales of national brand toilet paper increased 14.4%. Sales of private label paper towels increased 21.1% compared with 18.3% for national brands. For facial tissue, the growth was 10.5% for private label and 9.1% for national brands, and for paper napkins, private label sales grew 13.9% compared with 1% for national brands.
MILLENNIALS AND THE ENVIRONMENT
Paper packaging also is seeing growth in private label. “As a result of the coronavirus, and likely more meals at home requiring more multi-serve beverages from the grocery stores, several of our categories grew,” said Katie Simmons, marketing director for Evergreen Packaging in Memphis. “We saw an impact in our production for retail products.” Simmons noted that certain key segments for private label paper packaging reported by Nielsen saw large gains for the 40-week period ending Oct. 3 for the Total US xAOC market. There were increases in milk, milk substitutes and juices, which she noted reflect the coronavirus-related trend of people eating more at home. “These categories continue to run at higher levels than last year, and we continue to focus on meeting customer demand,” she said. Evergreen Packaging encourages retailers to stay focused on the longer-term sustainability benefits of paper-based packaging, as these benefits are attractive to younger shoppers. “Millennials and Gen Z consumers are not going away, and half-gallon packaging that provides about 80% renewable materials from trees as well as recyclability adds real value to how consumers see their retail brand,” Simmons said. In January, Evergreen Packaging released a report, “How Millennials Will Change Packaging Forever,” showing key factors that drive purchase decisions related to packaging. Among the findings: 64% of millennials said they are willing to pay more for eco-friendly products. Retailers are increasing their use of sustainable packaging in their store brands. One of Evergreen’s customers recently announced that PlantCarton packaging with Renewable Plus board is now being used in the organic milk category. “We always welcome discussion about how Evergreen Packaging can help support our retail customers with applying the latest board technologies or optimizing their sustainability story with our packaging,” she said. Consumers will continue to buy private label household paper. According to a March study from AlixPartners, 65% of U.S. consumers had tried a new brand or private label in at least one consumer product category. In household paper products, 23% had tried private label, and 25% that tried private label paper said they will continue to buy it. SB
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DISPATCHES Vol. 7
Schnucks’ Brands Shine in Stores
Going back to last year Schnuck Markets overhauled its own brand packaging with a modern look. Stamped with a red Schnucks button logo, the newly revamped packages have a bolder visual appeal that jump off the shelf. A recent walk through a Schnucks in Peoria, Ill., which stands a few hours outside the company’s headquarters in St. Louis found solid evidence that the retailer truly positions its store brand products across the store in very strong ways — both on-shelf and via displays.
Down the condiments aisle, it was very apparent how the new store brand packages popped off the shelf. The packages leverage fun fonts and food graphics to reach shoppers. 46
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The store’s most dominant form of merchandising were Schnuck-branded bins placed throughout the store, each of the roughly dozen bins emblazoned with that bold logo and carrying a different store brand product. Not pictured, the store carried a wellcrafted, dedicated rack for fresh baked goods with the Schnucks brand and another rack for freshly prepared rubs and seasonings like for chicken and waffles. The bins were highly effective, adding to a shopping experience that literally at every turn seemingly positioned a store brand in sight, keeping them front and center throughout the decision-making process. SB
www.storebrands.com
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THE RIGHT KEY TO GET YOUR PRODUCT
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We Hear You 8x10.75 Full Ad-Final.pdf
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