Market News - March/April 2008

Market News

Wal-Mart Adopts Global Food Safety Initiative Standards

Wal-Mart Stores, Inc., Bentonville, AR, has become the first nationwide U.S. grocery chain to require suppliers of its private label and other food products such as produce, meat, fish, poultry and ready-to-eat foods to have their factories certified against one of the internationally recognized Global Food Safety Initiative (GFSI) standards, according to the retailer’s website.

Under the GFSI program, producers of Wal-Mart and Sam’s Club private label and other foods sold in the U.S. must be audited by independently trained, approved and licensed auditors who are experts in their industry.

Internationally, Wal-Mart stores in the United Kingdom (Asda) and Japan (Seiyu) also require suppliers of food products to comply with GFSI standards.

The GFSI requires food suppliers to achieve factory audit certification against one of its recognized standards, which include Safe Quality Food (SQF), British Retail Consortium (BRC), International Food Standard (IFS), or an equivalent such as Global-GAP.

No rBGH milk for Giant Eagle

Giant Eagle, Pittsburgh, PA, now offers its private label milk free of recombinant bovine growth hormone (rBGH), according to Planet Retail. All Giant Eagle brand milk, including whole, reduced fat, low fat, fat free, chocolate and low-fat chocolate is rBGH-free. The company stated that the change in milk will have no impact on the current milk pricing.

rBGH is a genetically engineered variant of the natural growth hormone produced by cows. Injection of the hormone increases milk production by approximately 10% although critics argue that it is damaging to the cow’s health and contributes to other social and environmental issues.

Although rBGH is legal in the US, it is banned in Canada and parts of Europe, Australia and New Zealand. The FDA however, states that no significant difference has been shown between milk derived from rBGH-treated and non-rBGH-treated cows. Giant Eagle’s decision to go rBGH-free was in response to customer feedback and national trends.

Giant Eagle offers more than 7,000 high quality products under its store brand program, under the Giant Eagle, Market District, Nature’s Basket and Valu Time brands.

Raley’s Debuts Natural and Organic Full Circle Products

Raley’s, West Sacramento, CA, has announced that it is now adding even more alternatives to their aisles that support organic, natural and environmentally friendly living. Raley’s is rolling out about 120 Full Circle organic and natural items including grocery, produce, meat seafood, vitamins and supplements and household cleaning products, giving customers an affordable, natural choice right alongside national brands on aisles throughout 124 Raley’s, Bel Air Markets and Nob Hill Foods stores.

Raley’s has maintained the highest standards in selecting its organic and natural product line. Following strict U. S. Department of Agriculture (USDA) guidelines, Full Circle products fall under two categories, organic and natural. Full Circle grocery items and produce are organic. Full Circle meat, seafood, vitamins and household cleaning products are natural.

Rite Aid Gets Exclusive Skin Care Line

Colleen Booth-Rothschild’s–co-president and chief executive officer of Delicious Brands–image will make its debut on an exclusive line created specifically for Rite Aid, Harrisburg, PA, called C.Booth Derma. With the launch of Derma, Rite Aid joins CVS and Walgreens as retailers that are expanding their exclusive skin care offerings.

There are three main sub-brands in the line: Derma 36, Derma 24 and Derma 17. According to the company, the figures refer to the number of ingredients. Derma 36 is for mature skin and features anti-aging capabilities. Derma 24 is for all skin types and Derma 17 is for problem skin. Each item is priced for less than $20.

Rothschild is also expanding her lines to include products meant for body care. Other lines in the Delicious Brands range include the Booth’s skin care items, Modspa, Bath Basics and Habitat. Habitat includes home aromatherapy items such as diffusers.

Roundy’s Launches Advertising Campaign

Milwaukee, Pick ‘n Save, Copps and Rainbow grocery stores recently launched a new advertising campaign featuring Roundy’s private label products found exclusively at their stores. The ads feature Robert Mariano, chairman and CEO of Roundy’s Supermarkets, Inc., who stars as “Chairman Bob” and conducts a series of food inspections with the help of his “Bobtourage.”

The Meet Chairman Bob campaign will run in newspapers and on radio and television stations in all markets served by Roundy’s. Customers will also see life-sized cut-outs of Chairman Bob and the Bobtourage and other Meet Chairman Bob materials throughout Roundy’s stores.

Roundy’s offers more than 2,500 PL products exclusively at Pick ‘n Save, Copps and Rainbow.
For more information on Roundy’s private label products, visit www.meetchairmanbob.com. A Roundy’s brand fact sheet is also available.

7-Eleven Beefs Up PL

7-Eleven, Dallas, TX, recently introduced its new Signature 7 line of products. The new line, unveiled during the annual University of 7-Eleven at the Orange County Convention Center, featured 31 snacks, including beef jerky, chips, biscuits, nuts, trail mix and confectionery. The products are estimated to be available in stores beginning May 5. 7-Eleven also launched its PL energy drink, Inked, and a store-brand prepaid mobile phone.

The company will also soon debut its own private label snack brand, called 7-Eleven Select, and is said to be rolling out new flavors of iced coffees, guava-based pastries, snacks and a variety of additional Slurpee flavors.

No Hormone for Meijer’s PL Milk

Meijer, Grand Rapids, MI has begun offering private label milk from cows that have not been treated with the synthetic growth hormone, rBST, an artificial growth hormone, as reported by Planet Retail.
The retailer is one of the first major grocers in the region to offer its shoppers a store brand line of milk produced without the use of the artificial growth hormone. The decision will affect all Whole, 2% Reduced Fat, 1% Lowfat, 1/2% Lowfat and Fat Free Meijer brand milk in gallon and half-gallon sizes.

Meijer brand chocolate milk and all quart- and pint- size containers will be introduced later this year. This move has no affect on Meijer’s line of Meijer Organics Milk, since these products are guaranteed organic, and would not contain milk from any cow injected with a growth hormone. USDA Organic standards require that cows not be injected with antibiotics or artificial growth hormones.

Costco to Launch PL Craft Beer

Progressive Grocer recently reported that Costco Wholesale Corp., Issaquah, WA, is getting into the craft beer business with three private label offerings that might be brewed by the same company that produces Trader Joe’s store brand beers.

The retailer has filed label applications with the federal Tax and Trade Bureau for a Kirkland Signature Hefeweizen, amber ale and pale ale.

According to Miller Brewing’s BrewBlog, Costco has received U.S. Treasury Department Alcohol and Tobacco Tax and Trade Bureau label approval for three Kirkland label craft beers: an amber ale, a hefeweizen and a pale ale.

San Francisco-area craft brewer Gordon Biersch is said to be Costco preference for a brewer. While the labels have been approved, there are no reports as to whether Costco and Gordon Biersch have finalized a deal.

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