TREND ALERT - Store Brand Meal Deals

Retailers are incorporating store brands in “meal deal” promotions. Schnucks, for instance, has promoted $10-and-under meal deals that include a variety of its store brand items. For instance, a deal for Loaded Baked Potatoes includes discounts on Schnucks-brand sour cream, shredded cheese and real bacon pieces. Another deal for Chicken & Romaine Salad includes specials on Schnucks Premium chunk white chicken breast and Food Club fruit and nuts salad toppings.

In another example, Hy-Vee includes a variety of store brands in an Easter dinner meal deal. For $30, shoppers can get a spiral half ham, plus Hy-Vee brand gravy, potatotes, green beans and other items. 

DATA POINTS - Kroger’s Private Label Expansion

800

The number of new private brand products Kroger plans to introduce this year, Rodney McMullen, Kroger’s chairman and CEO, said in Q4 earnings call.

Lidl Appoints Four Retail Veterans

Lidl US has announced the appointment of four industry veterans to the company’s leadership team.

They are: Miguel Paradela, Executive Vice President of Purchasing and Chief Commercial Officer; Frank Kerr, Chief Customer Officer; Tod Seiling, Vice President of Fresh; and Michael Chao, Head of Marketing.

Kerr is Lidl’s first-ever Chief Customer Officer, responsible for driving a holistic consumer experience. Kerr, who returns for a second stint at Lidl US, where he was one of the first 50 employees, will bring all customer-centric activities together in this newly created team, which will include consumer insights, marketing, loyalty and promotions. Kerr has been in the US grocery industry for over 20 years and has worked at major brands, including Save A Lot and Nestle.

“I am excited to welcome Miguel, Frank, Tod and Michael to the team,” Lidl US CEO Joel Rampoldt said in a statement. “Their combined expertise, incredible leadership and the work of their talented teams will be crucial to our success as we continue to deliver high quality products at low prices for our customers.”

Aldi to Open 800 Stores in the U.S.

Aldi plans to add 800 stores nationwide by the end of 2028 through a combination of new openings and store conversions. Aldi also announced the completion of its acquisition of Southeastern Grocers and its Winn-Dixie and Harveys Supermarket banners, which it said will drive significant growth in the Southeast region over the next few years.

“Our growth is fueled by our customers, and they are asking for more Aldi stores in their neighborhoods nationwide,” Jason Hart, CEO, Aldi, said in a statement. “With up to 40% savings on groceries, new customers are inspired to try us out, and existing customers keep coming back.”

Aldi will invest more than $9 billion over the next five years on its national expansion, adding new locations across the country.

Store Brand 'Beauty' is Booming

Fittingly, store brands are looking better in Beauty. The Beauty Department grew 10.5% in dollar sales in 2023 vs. 2022, according to Tom’s Data Dive by Tom Prendergast, PLMA’s Director of Research Services. The analysis is based on store brand sales numbers in the PLMA/Circana Unify+ data portal.

Eye shadow grew 109.7% in dollar sales and 53.9% in units; Lipstick, up 67.8% in dollar sales, 60.7% in units; and Perfumes & Cologne/Body Powder rose 274.8% in dollar sales and 95.5% in units. Facial Moisturizers grew 56.9% in private label dollar sales and 33.1% in units, while Liquid Body Washes grew 42.8% in dollars and 15.2% in units.

New CEO Interview Series Debuts on April 4

PLMA has announced the debut of Lunch with Leadership, a five-part series of noontime interviews featuring some of the leading store brand CEOs in the U.S.

The series will focus on how these corporate leaders view their organization now and where they believe it fits in the future of American retailing and the store brand supplier community. The five interviews will be revealed by PLMA one at a time on successive Thursdays, from April 4 to May 2.

The April 4 kickoff session will feature Harry Overly, president and CEO of Flagstone Foods. Following Overly, other subjects will include Ann O'Hara, President, Huhtamaki North America (April 11); Lou DeMent, CEO of Giovanni Foods (April 18); Camilo Romero, CEO of Luker Chocolate (April 25); and Joe Mollica, CEO of LNK International, Inc. (May 2).

Click here for more information, or contact PLMA at info@plma.com.

'Smart' Shopping Carts Being Trialled

In Germany, Rewe is testing tablets attached to carts with an AI powered system that allows customers to scan their shopping list. The system can then navigate them to the desired products. On the way there, the screen shows discounted items and special offers.

Conad is testing a project that it calls ‘Genio nel carrello’ (genius in the cart). The smart trolley is able to recognize the items that are placed (or even thrown!) inside. The trolley, thanks to 8 cameras on board, and hardware inside the installed tablet, is able to recognize products with around 95%. Payment with the trolley can take place in three ways: passing through the traditional checkout, using the self-payment area, and the Pass Pay lane – passing without stopping for customers registered with a form of digital payment on the app.

Rise of Chemicals in Fruit & Veggies in Europe Detected

Europeans are increasingly exposed to PFAS, or ‘forever chemicals’, through their food. PFAS are deliberately sprayed on crops to increase the effectiveness of pesticides, although farmers are not always aware of them because they are not always explicitly stated on the products they use.

‘Forever chemicals’ are almost impossible or very difficult to break down in nature or in our bodies. Some PFAS can damage the immune system and cause cancer and have a harmful effect on the environment. As part of the Green Deal, the European Union wants to phase out the use of PFAS chemicals.

Of the 20 EU countries surveyed, PFAS chemicals were found most often in Belgium and the Netherlands. The volume of fruit contaminated with PFAS grew by 220% between 2011 and 2021.

EU Updates Cybersecurity Regs for Supermarkets and Suppliers

To help mitigate the risks of cyber threats to retailers and other industries, the EU has updated its cybersecurity regulation, Network and Information Security (NIS), to NIS2. This EU-wide initiative delivers the framework needed to build better cybersecurity structures across industries that provide essential functions.

The food sector in the European Union is one of the largest and most important industries, covering every aspect from farming to food processing, packaging, transportation, and retail sales. NIS2 now categorizes the food sector as an “important entity that provides essential functions” and includes food retailers and processors and producers.

Companies covered will have the duty of care and duty to report. Duty of care includes a risk assessment with consequential measures to be taken to guarantee continuation of services as much as possible. Duty to report involves reporting incidents that (can) significantly disrupt the provision of the essential services to the supervising authority within 24 hours. Organisations covered by the NIS2 directive will be under supervision.

The NIS2 directive also encourages supply chain management as an essential component of cybersecurity. This will require food sector organizations to ensure that their suppliers and partners meet the same cybersecurity standards that they themselves are required to comply with.

The NIS2 directive will come into effect by mid-October 2024.

Russian Barebones Discounter Returns to Western Europe

Mere, the hard discounter from Russia, seems to be in the middle of a relaunch in Western Europe. The chain opened two stores at the end of last year and a third last month in Spain. The company plans to open another six new stores in Spain this year. In Belgium, it opened three stores under the ‘MyPrice’ banner with plans for another three here this year. The discounter announces the opening of eight or nine stores under the MyPrice banner in Germany this year.

It is a remarkable move for a company that did an earlier push into Western Europe a few years ago. The discounter opened one store in Belgium in 2022 and pulled the plug after a few months It similarly entered and left the UK, Germany, Austria, France and Spain. At the time, it was said that there were supply issues and a lack of interest of the West European consumer.

The Mere and MyPrice banners belong to the Siberian group Svetofor. In Russia the retailer trades under the Svetofor name and is among the top ten food retailers. In East Europe, it has stores under the Mere banner, amongst others, in Czechia, Serbia and Lithuania.

The retailer works with a super simple concept in order to cut costs wherever possible. It sells a changing range of unknown brands displayed on pallets. The stores look like bare containers without any decoration. Goods are sold at prices that are 20 to 30% lower than those of other discounters. The stores operate with a limited workforce and are located at cheap locations outside the cities. It remains to be seen whether the concept will appeal to consumers this time.

Meanwhile, the Belgian Economic Inspectorate is conducting an investigation into the MyPrice chain. It will be examined, among other things, whether it complies with European sanctions against Russia.