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Private Label Magazine - July/August 2010

Greener Than You Think

By John J. Pierce

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Steamable broccoli-cauliflower is part of the new wave of private label produce at Safeway.

Private label salads and produce bring in more green for retailers with innovative products and consumer-friendly programs. Innovation has also come to dressings and fixings.

Safeway, Pleasanton, CA, has something to get steamed up about in the produce department: Steam in the Bag fresh vegetables under the Eating Right brand, already familiar in the shelf-stable and frozen food departments, and being licensed to other retailers.

“United flavor and nutrition” is the watchword for the Eating Right brand, and a combination of pre-washed broccoli and cauliflower has call-outs about supplying 100% of the daily allowance for Vitamin C and 270 milligrams of potassium per serving. Other items in the line include sugar snap peas, broccoli cole slaw, broccoli florets and broccoli stir-fry.

Store brand salads and produce are becoming a fixture at more and more retailers, Private label salads rang up sales of $606.6 million for the 52 weeks ended 5/16/2010, according to SymphonyIRI Group (IRI), Chicago, IL. That was a 23.5% increase, with store brands accounting for a 21.8% share. IRI doesn’t report on produce, but retailers that push salads nearly always push produce as well.

It’s not just the supermarket chains any more. Walmart, Bentonville, AR, has recently leveraged its Marketside brand – originally created for four fresh food-oriented stores in Arizona – into the fresh food brand for its supercenters, including such bagged items as classic iceberg salad (“We’ve hand selected Iceberg Lettuce, Red Cabbage, and Carrots for salads with cool, crisp flavor.”), shredded iceberg salad, shredded lettuce, spinach, broccoli slaw and organic spring mix.

Also part of the Marketside mix are prepared salads in compartmented bowls, including Chicken Caesar, Ranch Cobb, Chef’s and Southern Seven Layer – “our classic recipe of iceberg and romaine with peas, onions, bacon, cheddar cheese, and eggs. Includes seven layer dressing.” Still other Marketside items are microwave steamable (as at Safeway) broccoli florets, broccoli-cauliflower mix, broccoli slaw, snow peas, sugar snap peas and a vegetable medley of broccoli, cauliflower and carrots.

Other retailers offer other specialties – Chicken Cranberry Walnut Salad is one at Hannaford, Scarborough, ME. Harris Teeter, Charlotte, NC, markets a taco salad kit with diced onions, cheddar cheese and jalapeños as part of a Ready Veggies line under its Farmers Market brand. That sort of thing, if tracked by IRI, probably comes under the refrigerated deli salad-fruit-cole slaw category, along with potato salad and the like. IRI reports sales of $269.7 million, up 9.1%, for the catch-all subcategory under side dishes, Kroger, Cincinnati, OH, recently regrouped all its salads under a new Fresh Selections banner – “Any fresher and you’d be picking it yourself.” The line includes usual and unusual suspects such as Classic Garden, Leafy Romaine, American Blend and Field Greens. But to reassure shoppers who may have heard about tainted produce elsewhere, packaging also includes a 16-digit code enabling them to check out the origins of Fresh Selections items: “We want you to have confidence in your food choices by learning more about where your food comes from. Our new Quality You Can Trace program with HarvestMark allows you to access information about your salad online, such as harvest and packing information and safety status.”

Retailers and their customers can’t cut corners on salads when it comes to quality, but with a recession still on, some shoppers are ready to scrimp a bit on salad dressings. Delhaize America, Salisbury, NC, which operates stores under the Food Lion, Hannaford, Bloom and other banners is marketing dressings under the Smart Option economy brand now. These come in narrow 12.5 oz bottles similar to those for marinades. Topco Associates, Skokie, IL, has seven dressings it its Clear Value line, packaged in more standard 16 oz bottles. It’s the same with the Salad Mate line at box store chain Aldi, Batavia, IL.

On the upscale side, Kroger goes beyond the ordinary in those ordinary bottles, as with Sweet & Sour dressing. Elsewhere, premium and specialty dressings and vinaigrettes compete for attention. At Target, Minneapolis, MN, for example, there is Light Asian Ginger dressing under the Archer Farms brand with rice vinegar, soy sauce, sesame seeds and vinegar. Old World Greek vinaigrette at Price Chopper, Schenectady, NY, features feat cheese, garlic, kalamata olives, lemon and spices. And would you believe Pomegranate & Blood Orange vinaigrette at Delhaize? The pomegranate is “complemented by hints of tart & sweet citrus.” Wegmans offers twice-baked fat-free croutons, and organic croutons that are free of cholesterol and trans fat are trumpeted at Price Chopper.

Shelf-stable pourable salad dressings in private label enjoyed sales of $189.8 million over the past year, up five percent, according to IRI. Refrigerated versions are relatively small players at $5.2 million, but they were up 31.9% for the 52 weeks ended 5/16/2010. Regional chains like Hannaford and Wegmans, Rochester, NY, have been pursuing this segment. Salad toppings, with a gain 21.3% to $25.9 million, are getting more attention – and multi-purpose innovation. Aldi, for example, recently debuted crinkle cut crispy onions under its Wylwood brand for salads, soups, sandwiches and more.

Just in time for lighter summer fare, Topco introduced seven salad and soup toppings under the Food Club brand. Four crunchy toppings are available in 4-oz. packages, including crispy onions garlic pepper, tortilla strips Santa Fe style, tortilla strips tri-color and wonton strips authentic. Rounding out the line are the following three, 3-oz. fruit and nut topping options: dried cranberries & toasted almonds, golden raisins & honey roasted almonds, and dried cranberries & glazed walnuts. All seven SKUs are sold in stand-up pouches that provide a strong shelf presence as well as re-sealable zipper packaging for consumer convenience and freshness.

Cover Story
Meijer, Inc.–Store Brand Retailer of the Year
Duane Reade–Drug Store
ALDI Inc.–Discount Grocer
Sobeys–Canadian Retailer

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