PLMA e-scanner December 17, 2022

Issue #24 of 24
December 17, 2022

NEWS ROUNDUP
Store Brand Sales Jump Nearly 11%

During the first eleven months of the year, dollar sales increased by 10.6%, nearly twice the growth of national brands, which were up 5.8%, according to IRI.

In the month of November alone, store brand sales improved by 12.4% compared to the same period in 2021, while national brands were up 7.4%. So far this year, store brand dollar share is at 18.5%, and unit share is 20.1%. Based on the data, PLMA is projecting full year 2022 sales of store brands to reach $221 billion, which would be a $21 billion increase over 2021 and a new annual record.

The growth is significant because it is spread across the store and not limited to certain departments.

Looking at the 17 individual food and nonfood departments that IRI tracks for PLMA, over the trailing 52 weeks ending November 27, store brand sales were up in 16 of them, including double-digit increases in nine departments: Beverages, Deli Prepared, Liquor, Refrigerated, Floral, Bakery, Produce, General Food and Deli Meat. Tobacco was the only department that experienced a sales decrease.

In the two largest departments for store brands, - Refrigerated with $47 billion in sales; and General Food $38 billion, - the increases over the 52-week period were 15.3% and 12.3%, respectively.

Store brands also outperformed national brands in terms of unit sales. For the first eleven months of the year, unit sales slipped 1.3% but national brands dropped more than three times as much, off 4.3%.

For the month of November, store brands were nominally even at minus 0.8% while national brands gave up 4%. Such disparate results in unit sales are often seen as an indicator of shoppers switching to store brands from national brands.

 

PLMA’s Lunch & Learn Program Returns January 26

PLMA’s popular Lunch & Learn live and online speakers’ program returns on January 26 and will focus on how to grow private label sales.

Titled “Managing and Growing Private Brand Sales on Existing Business,” the program will be hosted by Kyle Patterson, Senior Vice President of Daymon.

"Managing and growing existing business is a cornerstone for both manufacturers and their retail partners,” Patterson said. “Directing current business is an essential skillset that must be mastered and is an important part of a cycle which helps us demonstrate value. This, in turn, leads to new business opportunities and ensures our viability as an organization in future."

Lunch & Learn will be held online for 60 minutes starting at 12:30 PM EDT. The professional development program is complimentary for all PLMA member manufacturers, brokers, and suppliers as well as retailers and wholesalers.

To register for the event, please click here or please contact Julia Meehan at education@plma.com for more information.

 

Kroger Reports Strong Store Brands Growth

In announcing third quarter earnings, Kroger highlighted the strong gains its store brands have made during the period.

Gary Millerchip, Kroger’s Senior Vice President and CFO said, “Our Brands continue to resonate deeply with customers, as sales grew 10.4% during the quarter. The outstanding quality and value offered by these exclusive to Kroger products is an important differentiator in our go-to-market strategy, and this is especially true during periods of high inflation,” Millerchip said. “Our Brands products are margin accretive and represent a key pillar in our strategy to grow profitability while also delivering greater value for customers.”

Kroger CEO and Chairman Doug McMullen echoed those sentiments.

“We continue to expand and diversify Our Brands portfolio at every price point. After launching Smart Way as our opening price-point brand last quarter, we introduced several new Smart Way products this quarter and plan to roll out additional products next quarter,” McMullen said. “These products are meeting the needs of our customers on a budget, and we’ve already seen 2 million households to purchase Smart Way products.”

Overall, Kroger launched 147 new own-brand items in the third quarter. These included holiday season products and plant-based, ready-to-cook meals, both under the Home Chef meal kit label. McMullen added Kroger’s Our Brands pet food products saw “tremendous growth.”

All sales for the quarter, which ended Nov. 5, climbed 7.3% to $34.2 billion, up from $31.8 billion a year earlier. Sales were up 6.4% year over year.

 

FDA Extends Time for 'Healthy' Labeling Feedback

The US Food and Drug Administration announced that it is extending the comment period for the proposed rule to redefine the term “healthy” for use on food package labeling.

In a revision of the FDA’s original definition established in 1994, the proposed rule would require products labeled with the word “healthy” to contain a meaningful amount of ingredients from nutrient-dense food groups including fruits, vegetables, dairy, grains, protein, and oils.

The proposed rule, entitled “Food Labeling: Nutrient Content Claims; Definition of Term ‘Healthy,’” was announced on September 29.

As an example, the FDA said a cereal would need to contain a certain amount of whole grains and adhere to limits for saturated fat, sodium, and added sugars to include the “healthy” claim on its package.

The new deadline for comments is Feb. 16, 2023.

The FDA’s extension of the comment period was in response to a request from stakeholders to allow additional time for interested persons to develop and submit comments. Comments should be submitted to Regulations.gov and identified with the docket number: FDA-2016-D-2335.

 

Small-Format Stores from Publix Popular with Consumers

According to a report from Placer.ai, Publix’s GreenWise Market, a chain of small-format specialty grocery stores, has generated more foot traffic at every location in Florida on a year-over-year basis even as visits to the retailer’s traditional supermarkets in the state have consistently declined by the same measure.

Shoppers also tend to stay longer in GreenWise stores than they do at standard Publix locations, Placer.ai found. The median time spent at the GreenWise location in Odessa, Florida, for example, was 28 minutes in the third quarter of 2022, while the comparable figures for three Publix stores located were 26, 25 and 24 minutes, according to the report. 

Publix began the GreenWise format in 2018 and currently runs seven GreenWise stores and more than 800 traditional supermarkets in Florida.

While Publix’s GreenWise stores seem to be popular with customers, the retailer seems to have stepped up attention on expanding the number of traditional supermarkets and other avenues of growth.

GreenWise stores, which typically occupy around 25,000 square feet, have a heavy focus on organic and prepared foods and are aimed at “health-conscious and gourmet foodies alike,” according to Publix. The locations feature a variety of “experience zones” that focus on items like meats smoked in-store, sausages made on the premises, gourmet sandwiches and burrito bowls. The concept also incorporates an area where shoppers can buy wine, beer, or coffee to drink while they walk the aisles.

 

Natural Grocers Announces 2023 Trends

Supermarket chain Natural Grocers has shared its seventh annual Top Trends for 2023 list, which was created by the company’s Nutrition Education team.

Next year’s expected trends are focused on four categories: Health and Wellness, Body Care and Beauty, Food and Beverage and Ecologically Thoughtful.

Shelby Miller, MS, Natural Grocers' director of scientific affairs and nutrition education said "Though the COVID pandemic initially made its presence known almost three years ago, its lingering effects are still impacting how we approach our health and wellness, self-care and food preparation. Miller added “There is a big push among both consumers and brands to minimize waste and make every dollar count.”

"We've expanded our trends for the coming year to reflect how intricately this is all tied together and how our daily purchases and practices can shape our collective wellbeing and our ability to thrive and flourish long-term," Miller stated in a press release announcing the release of the list.

Walgreens to Offer 24-Hour, Same-Day Delivery

Walgreens is expanding its Same-Day Delivery program to now fulfill orders 24 hours a day. Most of its consumers across the U.S. will have access to more than 27,000 of Walgreens’ items for same-day delivery in as little as one hour.

“Walgreens knows that taking care of health and wellbeing isn’t exclusive to business hours and that needs can pop up at any time of day – that's why we’re always looking for ways to enhance the customer experience with convenient and trusted solutions,” said Stefanie Kruse, group vice president of Digital Commerce. “As the place customers turn to for their last-minute needs, we know they will find value in being able to access the items they need most, no matter the hour, right to their door.”

The new service comes to nearly 400 participating 24-hour Walgreens stores.

However, there will be some states where the Same Day Delivery program will not be available. They include Alaska, Colorado, Iowa, Maine, North Dakota, South Dakota, Utah, Vermont, West Virginia, and Wyoming.

Walgreens operates nearly 9,000 retail locations across America, Puerto Rico, and the U.S. Virgin Islands.

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