Market Report
US Retail Trade Mission to Puglia
A U.S. trade delegation, organized by the Italian Trade Commission, visited the Apuglia Region in southern Italy May 17-23, where they met with Italian Trade officials, visited production facilities, and sampled products from more than 50 participating Italian private label food and wine producers. Kehe/Tree of Life Foods, Glazer Distributors, Isola Imports, and Daymon Worldwide were among the companies on the trip. Products included olive oil, pasta products, cheese, deli products, vinegars, snacks and nuts, baked products, wine, candies and much more. The Apuglia region of Italy is the largest olive oil producing area in the world and ranks second in wine production in Italy.
Other trade missions from the U.S. are being planned for central Italy (regions of Tuscany and Emiglia-Romagna) later this year. In June, a smaller delegation will be participating in a European Conference on sustainable agriculture in Tuscany.
In November 2009, the Italian Trade Commission Chicago Office commissioned an update to a comprehensive market assessment for “authentic” Italian private label items in the U.S. (original study dated November 2008). The results of the study, conducted by Wisner Marketing Group, confirmed the popularity of Italian foods and also showed that there are untapped growth opportunities for "authentic" Italian private label food products.
The success of Wegman’s Italian Classics, A&P’s Via Roma, and the recent announcement by Target to develop a line of "premium" Italian products featuring Giada De Laurentiis all validate what the Italian Trade Commission has learned. Each of these retailers is making their Italian-focused brands a key competitive point of difference.
If you wish to receive additional information or wish to be considered for any of the upcoming trade missions to Italy, please contact Mr. Patrick Capriati, Senior Trade Promotion Officer at the Italian Trade Commission Chicago office, tel. 312.670.4360 email: chicago@ice.it.
Perrigo Wins Case
Perrigo Company of South Carolina, Inc. announced that it won two favorable jury verdicts against Rexall Sundown, Inc. in an unfair competition lawsuit that was brought in the U.S. Eastern District Court of New York. The jury unanimously found that Perrigo’s statement, used on wholesalers’ and retailers’ store brand packaging for joint care products containing Glucosamine and Chondroitin, inviting consumers to compare the products to Rexall Sundown’s Osteo Bi-Flex, is not false and misleading and does not violate Section 43 of the Lanham Act.
In addition, the jury ruled in Perrigo’s favor on its false advertising counterclaim against Rexall Sundown under Section 43 of the Lanham Act based on a statement used by Rexall Sundown on packaging from 2006 to 2008. The jury determined that the Rexall Sundown statement was false and misleading and awarded Perrigo damages.
PLMA Survey: Awareness Rises
More than half of consumers polled in February said they are more aware of store brand products now than they were a year ago, according to GfK research conducted for the Private Label Manufacturers Association.
Of those polled, 57% say they buy private label products “frequently,” up from under 55% a year ago. A greater number of shoppers are switching to store brands in product categories where they had previously only purchased a national brand. In fact, some 43% report they have recently forsaken a familiar national brand for a private label counterpart, a marked increase since the June 2009 when only 35 % said they had done so. Ninety-seven percent compared store brands favorably to their previous national brand choices in the same categories.
Many are relying on store brands in response to the economy. Four in 10 consumers polled said economic conditions had gotten worse in the past few months, 42% said they stayed the same, and fewer than one in five thought they’d improved, according to the report.
Some participants said the economy will impact their supermarket shopping habits by causing them to buy larger sizes for regular purchases, use more coupons and promotions on national brands, and change the stores or types of stores they do their primary grocery shopping in.
The full report, entitled Recession, Recovery and Store Brands: What Consumers Are Saying Now, is available for download at http://cli.gs/PLMAGfKRpt.
PLMA Conference Analyzes Store Brands at Half-Time
PLMA’s Annual Meeting & Leadership Conference, held March 25 – 28, in Orlando, FL, examined the health of the store brand market from four key points of view:
- The Wall Street viewpoint was presented by Jonathan Feeney of Janney Montgomery Scott;
- The Manufacturer’s view came from David Skarie of Ralcorp Holdings;
- The Retailer’s view was from Don McGeorge, formerly of The Kroger Co., and
- The Consumer’s view came from Tod Marks of Consumer Reports.
New PLMA Officers: The new officers and directors elected at the Annual Meeting include: - Tom Chaffee, of Sturm Foods, who was elected to serve a one-year term as chairman of the board of directors.
- Greg Baskin, of Hormel Foods, was elected to the position of first vice chairman.
- Howard Kirschenbaum, of Webster Industries, was elected to the second vice chairman post.
Five individuals were elected to the board for three-year terms from 2010-2013. They are: Edward Salzano, LiDestri Foods; Kent Dell, ADM Cocoa; David Walcoff, Reynolds Consumer Products; Bill Bond, Willert Home Products; and Jo Osborn, Bay Valley Foods.
Wayne Redfearn, Caliber Sales & Marketing, was elected to the board to represent PLMA member brokers; and Paul McOsker, North Cliff Consultants, was elected to represent PLMA member suppliers.
The 2011 PLMA Leadership Conference will be held March 24-27 at the Gainey Ranch in Scottsdale, AZ.
Top Care Fights Wrinkles
Top Care recently introduced three advanced anti-wrinkle creams that compare to L’Oreal RevitaLift products. They are .5-oz. Day / Night Eye Firming Cream, 1.7-oz. Day Cream for Face and Neck and 1.7-oz. Night Cream for Face and Neck. These items contain encapsulated pro-vitamin A, Matrixyl and Sepilift–three effective anti-wrinkle and skin firming agents. Sales of all three national brand items experienced double-digit sales increases during the past year, according to Symphony IRI Group market research.
Employees Choose Store Brand Flavors
The latest ice cream flavors in Supervalu’s private label line are Twisted Pretzel, Red Velvet Cake and Italian Kiss, according to Supermarketnews.com. The varieties were the winning entries in the “Stone Ridge Creamery Name Your Dream Flavor Sweepstakes,” open to Supervalu employees.
The winners are Tom Lindberg, retail technology specialist, Supervalu; Amy Youngblood, senior business support specialist, Supervalu; and Joe Agrusa, direct-store-delivery receiver at Albertsons’ Chula Vista, CA store.
In addition to receiving a $500 gift card and free ice cream for a year, winners will have their caricature featured on their flavor’s 32-ounce carton, which retails for $3.99.
Lindberg’s Twisted Pretzel includes sea salt-infused caramel and dark chocolate-coated pretzel pieces in vanilla ice cream. Youngblood’s Red Velvet Cake is red in color and infused with flavors of chocolate and cream cheese frosting. While Agrusa’s Italian Kiss is a blend of chocolate ice cream, hazelnut and dark chocolate chunks, reminiscent of a treat he enjoyed as a child growing up in Italy.
Delhaize Reformulates Store Brands
Delhaize Group-owned Hannaford Supermarkets private brand food products now have zero grams of trans fat per serving, Supermarket News reported. Over the past two years, the US-based retailer has modified the recipes of 295 items. It has also worked to improve the overall nutritional value of selected own-label items in its 4,000-product line to meet or exceed the positive health attributes of alternative choices.
“Our shoppers want choices that help them save money and eat better, and the Hannaford brand can help on both counts,” said Julie Greene, Hannaford director of healthy living. “We’ve been working to enhance the nutritional quality of our private brand and are pleased to offer more high-quality choices than ever that support healthy lifestyles.”
Rite Aid Rewards
Rite Aid customers now can sign up for Rite Aid’s new wellness+ customer rewards program and save on store brands.
The free Rite Aid wellness+ rewards card offers 24/7 toll-free access to a pharmacist and 10 percent off Rite Aid brand products.
Additionally, members accrue points with eligible pharmacy and store purchases to get free health screenings and additional merchandise discounts.
“Our customers told us they wanted a program that offered more than just discounts. The wellness+ program marries our customers’ fiscal and physical well-being, and we reward them with both member-only shopping discounts and health and wellness benefits that increase the more they shop and the more prescriptions they fill at Rite Aid,” said John Learish, Rite Aid senior vice president, marketing. “We’ve tested this program in four markets over the last six months, and results exceeded our expectations. This is the drugstore industry’s only customer rewards program focused around pharmacy and wellness.”
Bi-Lo Hires Highsmith and McShane
BI-LO, LLC has hired Frank “Bob” Highsmith and Mike McShane. Highsmith will act as BI-LO’s category manager of beer and wine. McShane will serve as the company’s category manager for specialty foods and rewards.
