Market News
Whole Foods Responds to New Eating Habits
Two out of three adults in the United States have changed their cooking and eating habits due to the economy, according to a new survey conducted by Harris Interactive for Whole Foods Market. The annual Food Shopping Trends Tracker revealed that 51 percent of Americans are eating dinner at home more, while 37 percent are budgeting food shopping trips more strictly, reports www.houston.bizjournals.com.
Of the respondents who said their grocery shopping habits have been affected by current food prices, 54 percent are using more coupons, 50 percent are more likely to comparison shop and 45 percent are more likely to buy private label/grocery store brands.
Private Label Magazine picked up a copy of Whole Foods Market’s in-store magazine, the whole deal, for August/September, which reflects response to these findings.
The magazine’s cover boasts there are “more than $35 in coupons” inside and features an illustration of 365 Everyday Value Peanut Butter, Whole Foods Market’s economy brand.
Inside, the magazine features coupons, recipes that use 365 Everyday Value products as ingredients, and products that are a “sure deal” such as 365 Everyday Value Organic String Cheese, which is only “77 cents a stick” (which adds up to the $4.69 package price listed below the product information).
More money-saving tips can be found throughout, including information on organic products, how to build a better lunchbox and “3 ways to always save in our stores.” Number three is to shop for 365 Everyday Value.
For more news on Whole Foods Market, see the 2009 Green Report in this issue.
Amazon Expands PL Products
Amazon is expanding its private label business. They have announced the launch of AmazonBasics, a new private label collection of consumer electronics basics, and last month the company received a US design patent for a wooden chopping block, reports www.planetretail.net.
The AmazonBasics line currently includes audio video cables and blank DVD media, with additional accessories and other items to be added in the coming months.
The Pinzon bamboo cutting board is being sold as part of a line of Amazon’s own kitchen products on its website. Amazon launched a new collection of private label kitchen utensils in June, designed by Seattle Chef Tom Douglas and sold under his name.
Currently, the company sells more than 1,000 products that are manufactured at its request. The company now has its own design and sourcing team on staff, although manufacturing is outsourced.
Sobeys Expanding Premium PL
Sobeys is revamping its private label program to include more premium choices and fewer value items, according to www.supermarketnews.com.
Bill McEwan, president and chief executive officer of Sobeys, said the changes include expanding its premium products under the Sensations label from 150 items to 1,000; refreshed packaging on its core Compliments range of national-brand equivalent items; and a new value tier, Signal, in replacement of the Compliments Value brand. Signal will include a range of 250 products, down from 1,000 Compliments Value items, McEwan said, but the selection will be better defined.
Appointments
Safeway Appoints New SVP
Safeway has appointed a veteran national brands executive to head up its private label organization, according to www.plma.com. Joseph Ennen has been named senior vice president, consumer brands. Ennen, who previously worked for the Frito-Lay division of PepsiCo, will oversee Safeway’s corporate brands organization including its marketing, finance and outside sales functions.
Kroger Brands Exceed 35% Share
Store brands have achieved their highest market share ever at mainstream supermarket chain Kroger, climbing over the 35% level, according to www.plma.com.
Kroger’s CEO, David Dillon, told financial analysts that “national brand vendors are really trying to regain some tonnage movement,” but this “does not seem to affect growth of our corporate brands.” Store brands continued to post double-digit growth in units in the latest financial quarter versus last year.
“We had three quarters now in a row where our percent of units sold in grocery in corporate brands was 35%,” Dillon said. “The growth in the fourth and first quarter was roughly a 300 basis point increase.”
