Annual Premium Report
By JOHN J. PIERCE AND MARIA TORTORETO

Store Brand Rainbow

Premium private labels are the hue and cry of marketing, with every retailer and distributor trying to create destination food and beverage products appealing to upscale tastes. Pampering bath and shower products are also all the rage these days, and they can be found in just about any general merchandise store.

They began with cookies. But premium private labels these days are more likely to focus on specialty, ethnic and other niche items. And a lot of premium store brands have nothing to do with food at all, but rather bath and body care, cosmetics and even general merchandise.

Besides premium brands per se, there is a growing number of category-specific brands for everything from ethnic foods to frozen entrees, meat, produce, take-out foods, pet foods, wine and beer, bath and body care, cosmetics, cleaning products and more--all aimed at bringing shoppers into the store and keeping them there.

Food retailers are looking more and more to unique niche items that set them apart from other retailers as well as the national brands. Specialty sauces, mustards, olives and the like vary from one program to another. Meanwhile, drug retailers and mass merchandisers are expanding into cosmetics and other areas where private label once feared to tread.

At Loblaw Companies, Toronto, CA, which introduced the first premium private label, President's Choice, 20 years ago, they've expanded from Decadent cookies into ethnic food specialties, organics, fresh flowers, lawn furniture and even household organizers. Blue Menu, the latest sub-brand, is devoted to healthy foods made without hydrogenated oils. Nobody else has matched President's Choice, but other retailers are diversifying.

Premium cookies you'll still find, but you'll also find things like pear halves in glass jars under the Central Market Classics brand at Price Chopper, Schenectady, NY, and pickled baby corn under the Private Selection brand at Kroger, Cincinnati, OH. You'll find imported cosmetics under the Isadora brand at Walgreens, Deerfield, IL, and imported hair coloring in the Umberto Giannini label at Rite Aid, Camp Hill, PA.

Trading Up

"Trading companies" are in vogue. First there was H.T. Traders at Harris Teeter, Matthews, NC. Then came Nob Hill Trading Co. at Raleys, West Sacramento, CA. And over the past year, Topco Associates, Skokie, IL, has spun off World Classics Trading Company from the World Classics brand it first introduced in 1988.

Mostly likely the original inspiration was Trader Joe's, Monrovia, CA, which built its reputation on specialty as well as health foods under the Trader Joe's and related brands. When Harris Teeter launched H.T. Traders in 1999, the brand was devoted mostly to import foods, but regional and other specialty items now predominate.

This year, the chain has taken a flyer at fresh foods under the H.T. Traders brand with a line called Soup du Jour. Tuscan Minestrone isn't produced in Italy, obviously, but it's based on an "Italian recipe." Other items in the line include Potato, Cheddar & Bacon; Chicken Tortilla, Summer Fresh Tomato Basil and New England Clam Chowder.

Still, ethnic--especially Italian--and other niche items remain central to the H.T. Traders identity. Balsamic glaze, portobello mushrooms with roasted red peppers, olive oil with Italian herbs, cipolline onions with balsamic vinegar and Country Mix pitted green olives are among typical examples. But there's also an Urban Legend steak sauce that offers a "taste of New York."

Nob Hill Trading Co. Beef and cheese fire bites--"a unique hand-rolled appetizer filled with a delicious combination of beef, cheese and spices"--are one of the stars of the frozen food section at Raleys. Others include egg rolls, teriyaki chicken, Chinese pot stickers and several varieties of ravioli, lasagna and tortellini.

Coffee is one of the mainstays of the Nob Hill line, with specialties including Café Mocha Tiramisu, Morning Coffee Cake, Crème Brulée, Mexican Harvest Full City Roast and Kona Macadamia Nut, all retailing at $4.98 a bag. There are also specialty teas like Ceylon Mist Green and Pacific Northwest Peppermint at $2.99 a box.

Specialty mustards in octagonal bottles at $2.49 include Wasabi, Garlic Roasted with Whole Grain and Whole Grain with Balsamic Vinaigrette. There are mixed fruit preserves at $2.99 like Apricot-Peach-Passion Fruit and Strawberry-Cherry-Plum, Raleys has even found a novel premium cookie: macaroon with pecan chocolate chip ("loaded with real chocolate chips").

World Classics Trading Company is somewhat more limited in its offerings, which run heavily to crackers--those were given an introductory boost recently at the web site of Lowes Foods, a Topco member based in Winston-Salem, NC. But it also includes upscale pastas (campanelle, capellini) and pasta sauces (Creamy Vodka, Spicy Red Pepper Arrabiata), olives (blue cheese, jalapeño and pearl onion-stuffed), rice (Brown Basmati and Wild Rice Medley, Italian Arborio) and salsa (Southwestern Style Smoky Chipotle).

Method Cheffing

M.J. Brando, whose M.J. Brando's Global Culinary Solutions was acquired two years ago by Smithfield Foods, and whose previous innovations include French onion soup in edible crocks made from bread, is now turning his talents to creating premium frozen dinners for the Grandessa brand at Aldi, Batavia, IL, the limited assortment store chain.

"As a certified master chef with over 35 years in the culinary arts, I've traveled extensively, training and working with some of the finest chefs in the world," Brando says on the back panels. "Throughout the years, I've discovered unique ways to take classic recipes and turn them into outstanding, flavorful culinary experiences. Now I'm bringing these delicious recipes home to you with Aldi's premium line of Grandessa dinners."

Items range from Cajun Style Pork Dinner ("an old family favorite, with zesty tomato sauce full of vegetables and pork and served with my version of ratatouille) to Turkey Pomodoro Dinner (a "classic dish from central Italy" with tomato and red wine sauce, capers, onions and garlic; "I have paired tender asparagus and sweet carrrots along with gemelli pasta and tricolored peppers to complete your dining experience.").

No macaroni & cheese or Salisbury steak here! Other individual 10-oz package include Mexicana Pork, Classic Turkey, Rosé Chicken, Spicy Chicken Sausage and Szechwan Style Chicken. There are also family size Burgundy Beef Tip, Island Chicken and Honey Curry Pork. Each features Brando's smiling image as well as his words. Beyond the Brando line, meanwhile, are new introductions like Prosciutto (Black Forest, diced or contadino).

Other frozen products under the Grandessa brand include fruit bars (lime-pineapple, coconut, strawberry, and Caribbean--the last with strawberries, pineapple, passion fruit, mango, coconut flakes); and Blueberry Phyllo Pastries.

Aldi is also pushing a healthy foods brand called Fit & Active, which covers everyday products like reduced fat wheat crackers, lite Italian salad dressing and lite butter popcorn; and, more unusual, mango-flavored pineapple dried fruit. The Fit & Active label usually shares billing with Aldi's category brands. For instance, the Fit & Active Light Italian dressing label also has the Salad Mate brand on it.

Presidential Fever

There was cause for celebration this year at Loblaw, as President's Choice products took home three prizes from the annual Canadian Grand Prix New Products Awards competition sponsored by the Canadian Council of Grocery Distributors. Chosen from among 150 entries by a panel of 40 jurors, they included, as described in the Council's announcement:

Green Apple Sparking Soda. Naturally flavored sparkling soda. The taste profile is similar to "granny-smith" apples. As these drinks are naturally flavored, they are an excellent value against real fruit juice, as their price is comparable to regular carbonated soft drinks.

Decadent Molten Chocolate Cakes. These rich, moist cakes are made with creamery butter, exquisite dark chocolate and whipping cream. The cake is filled with a rich truffle-like dark/bittersweet chocolate ganache. When warmed, molten chocolate ganache flows from the center.

Mini Chefs Jungle Buddies Breaded Chicken Nuggets. Breaded chicken nugget cutlets made with all white breast meat. Elephant, giraffe, lion and rhino shapes. Developed for the President's Choice Mini Chef range, to meet the needs for a nutritiously responsible range of foods for children 4-10 years of age. Baked, not fried, breaded chicken nuggets. No trans fats, artificial flavours or artificial colors.

Three more President's Choice products were finalists:

• Atlantic Coldwater Shrimp Cakes,
• Indian Tikka Masala Cooking Sauce,
• Mini Chefs Zippy Fruit! Naturally Flavored Apple Fruit Snack.

Loblaw is looking to the public for another kind of prize. "Tell us what you think!" it asked at a page devoted to the Blue Menu line at its President's Choice website. Results thus far give the highest rating--4.2 points out of a possible five--to Chicken and Red Pepper Stone Baked Pizza. Reduced Fat Chicken Strips are a close second at 4.1.

Canada's largest distributor and retailer is always looking for ways to improve President's Choice, as witness a blurb about its fresh flowers program:

"We met with growers around the world to establish a unique system that ensures our PC Fresh Flowers stay fresh longer. First, growers agreed to delay cutting their flowers till they get word from us--a change that dramatically reduces the time between when flowers are picked and when you buy them. We've also ensured that our growers use the latest technology in post-harvest care, and we've improved temperature control during transportation. As a result of these improvements to traditional methods, we can guarantee our premium PC Fresh Flowers will last 5, 7 or 10 days, depending on the variety."

Beyond President's Choice, Loblaw has introduced this year exclusive brand under license from Sesame Workshop: Sesame Beginnings and Sesame Street apparel, health & body, home, and seasonal products. "Sesame Beginnings is a new infant brand that teaches parents interactive techniques and fun activities that encourage early learning in a way both they and their child will enjoy," says a Loblaw press release. "Featuring favorite Sesame Street characters such as Elmo, Big Bird, and Cookie Monster as babies, the line of infant products will inform and inspire parents while entertaining and delighting their little ones."

Extending the Franchise

Signature at Safeway, Pleasanton, CA, began as a brand for fresh sandwiches, and fresh soups soon followed. Now there are also Signature whole roasted chickens, Signature salads and Signature panini grilled sandwiches. Like Safeway Select in processed foods, the brand is busting out all over.

Those grilled sandwiches include Ham, Swiss & Cheddar, Pastrami & Swiss, Turkey & Havarti, Italian Classic, Three Cheese, Philly Cheese Steak, Breakfast Panini with Ham and Grilled Panini with Bacon. Signature salads include Seafood Pasta, 8 Grain, Tabouullah, Loaded Baked Potato, Farfalle Pasta with Arugula Gorgonzola, Southwestern Fajita, Vegetable Medley, Egg and Mediterranean Pasta.

Signature Prime Rib sandwiches are made with Ranchers Reserve beef, another of the chain's category brands. Ranchers Reserve now has its own page on the Safeway website, featuring recipes, cooking tips and even TV commercials. In one of these, a guy in a cowboy hat and boots brags about those boots, "made by the finest bootmaker in Texas." Of course, he admits, "I've never actually been to Texas. I got these on the Internet, and I get my steaks from Safeway."

Central Market Classics at Price Chopper began as a line of shelf-stable premium foods: cookies, sauces, mustards, the usual thing. But then there was a spin-off, Central Market Classic Solutions, for frozen convenience meals.

These include the likes of Crab Rangoons ("Crispy Wonton Wrap Crust hand-stuffed with a mixture of 100% real Canadian Rock Crab Meat, Cream Cheese, Onion, Soy Sauce and Spices"), Strawberry cheesecake ("Rich and creamy, made with Cream Cheese, Sugar, Eggs, Cream and Pure Vanilla, swirled with sweet Strawberry Filling"), Pot Roast with Vegetables, Vegetable Lasagna and Tiramisu.

But Price Chopper also continues to expand the original Central Market Classics line, with niche items like Artichoke & Tomato Bruschetta, Old World whole mushrooms and Wasabi mustard, plus upscale staples and snacks like Roasted Garlic Mashed Potatoes, Sweet Cream Buttermilk Pancake Mix, mini Stone Ground Wheat Crackers and Milk Chocolate Raisins.

Dry sauce mixes aren't usually the stuff of premium brands, but Kroger has upgraded the category with Private Selection Béarnaise, Hollandaise, Green Peppercorn and Pesto. At the same time, it has gotten into niche canned and bottled items like white asparagus, sardines in soybean oil, smoked oysters, extra tiny carrots, sun-dried tomatoes in olive oil and spices. They might never be big sellers individually, but the brand gets shoppers' attention and so they contribute to overall volume and the bottom line.

Specialty Retailers

Specialty bath and body retailers are also moving into the private label and exclusive realm, sometimes bringing already upscale products even higher on the premium ladder. Victoria's Secret, New York, NY, for example, offers the retailer's own brand of bath and body products as well as national brands, but has recently partnered with designer Anna Sui to create a new line of exclusive products called Anna Sui Secret Wish. A 6.8-oz bottle of lotion sells for $30, while a 6.8-oz bottle of shower gel sells for $28. The matching fragrance sells in 1.7-oz and 2.5-oz bottles for $48 and $65, respectively.

Bath and Body Works, Reynoldsburg, OH, also carries an exclusive line of products partnered with American Girl, introduced in stores August 1. The line, called American Girl Real Beauty, is targeted toward teenage girls and includes fruity fragrances such as Juicy Apple and Strawberries & Cream. American Girl is a marketer of clothes, games, and toys for girls.

Sephora, San Francisco, CA, is an upscale cosmetics and beauty care retailer with a considerable private label range as well. The retailer sells unique bath and body products, such as chocolate raspberry mousse hair and body wash (4-oz bottles sell for $8). Sephora Professional is a line of upscale cosmetic accessories (see Cosmetics category in this issue of PL), and Sephora Girls is a teen line of bath products and lotions in strawberry and coconut scents.

Department Stores

JC Penney, Plano, TX, has an extensive line of bath and body products in stores. Delicates, the umbrella brand, offers quite a few sub-brands, such as JC Penney Signature by Delicates, which offers 32-oz bottles of shower gel, bubble bath, and body lotion for $12 each. Natures Flavors by Delicates offers eight scents of lotion, spray, and body wash for $9.

Kohls, Menomonee Falls, WI, has just recently introduced four new lines of exclusive beauty products (see Cosmetics category). The lines--American Beauty, Flirt!, Good Skin, and Grassroots--all offer upscale and unique products for premium prices. For instance, creams and lotions are priced from $21 to $27 per item.

Discount Stores

Target, Minneapolis, MN, offers two exclusive lines of bath and body products. The Bathery, a luxury line of bath accessories, offers items ranging from loofas, bath pillows, and head towels to foot files, eye masks, and sleep masks. Luxe is another line of bath and body products available in five scents and including body wash, lotion, bath beads, and body mist. Two-ounce bottles are available for $1.59 each, and sets are sold for $12.99. Target also is home to the exclusive Sonia Kashuk line of cosmetics (see May/June 2005 issue of Private Label).

Kmart, Troy, MI, offers the Joe Boxer line of bath and body products for men and women (see Bath/Body category). The line includes body wash, cologne spray, body spray, and assorted bath accessories in various scents for him and her.

Wal-Mart, Bentonville, AR, has the Simply Basic line of bath and body products, including bath accessories and lotions, sprays, and body washes. Simply Basic products are also available in gift sets. The retailer also offers gift sets under the Comfort & Care name in various scents such as Vanilla Milk.

Drug Stores

The Apt. 5 line of products from Duane Reade, New York, NY, offers both cosmetics and hair care products. Ten-ounce bottles of various shampoos, conditioners, and gel are available, along with 2-oz jars of shine pomade and styling taffy. All products sell for $5.95 each, and each offers its own cute phrase on the packaging. The volume shampoo, for example, dons the phrase, "What goes up... doesn't have to come down."

Rite Aid, Camp Hill, PA, has the Pure Spring line of bath and body products separated by categories: relax, cleanse, moisturize, exfoliate, and hard to reach. Facial brushes, spa body wraps, soap savers, and satin sleep masks are available. The drug chain also is home to the exclusive Umberto Giannini and Glamour by Umberto Giannini lines. Each has its own line of hair care products and hair accessories, similar to the glam line of accessories by Conair. Also available under the Umberto Giannini line is Catwalk Colour, "star-quality streaks" hair color sold in four colors. Packaged in unique tin cans, UG hair color sells for $17.99.

The Essence of Beauty line from CVS, Woonsocket, RI, covers the bath accessory category, including bath mits, foot booties, terry pillows, and body wash sponges. Lumene, the line of cosmetics and skin care products (see Cosmetics ccategory), offers premium quality age-protecting hand cream, aroma wake-up shower gel, and firming body moisturizer.

Mira is the line of beauty products and cosmetics from Eckerd, Warwick, RI. In addition to cosmetics (see Cosmetics category), terry bath pillows, microfiber hair and body towels, sponges, and brushes are available. Naturally Mira is the sub-category of shower scrub, ginger salt scrub, skin polisher, and face moisturizer.