Supermarket Perimeter - March 2020 - 9

At

Encino, California-based retailer Gelson's, the balance of private label and
branded products in the chain's fresh
perimeters often depends largely on the individual
departments.
In deli and dairy, for instance, Gelson's focus continues to be on branded because of customers' strong
brand loyalty for products in those categories, says
Rich Gillmore, senior director of center story category
management.
"That's especially true in first-to-market and local,"
Gillmore says.
That said, Gelson's is open to tipping the scales
a bit more toward the other end of the scale - as
long, Gillmore says, as it's done carefully, so as not to
offend those brand loyalists.
"We'd love to create new private label items where
the opportunity exists," he says. "Some of our most
successful private label items exist in the deli/dairy
departments. But we have to be cautious what categories we decide to play in with private label."
In Gelson's produce departments, however, private
label is definitely more popular, and will likely become
even more so, says Paul Kneeland, the chain's vice
president of fresh.
For meat and seafood, it's a good mix, says Sean
Saenz, Gelson's senior director of meat and seafood
operations.
"Private label is a continued focus as it will allow
you to compete with the top national brands with
a higher profit margin," he says. "For Gelson's meat
operation, the ability to procure only the finest quality
items, making sure they are better than the national
brand, is a win-win. Having first-to-market , exclusive
or locally made national brands is always a win."

A trend toward private
In the past couple of years, the trend in instore bakeries has shifted toward private label, says Josh Bickford, executive vice president of strategic initiatives
for Addison, Illinois-based Clyde's Donuts.
"Private label bakery items allow the instore bakery
to create its own identity, and many retailers are
using private label products to turn their bakery into a
destination," he says. "Private label product creates an
identity for the retailer, and a cohesive story of what
customers can expect. We find that when combined
with high-quality instore bakery products, retailers
are proud to put their name on it."
Regardless of how individual Gelson's perimeter
departments are stocked currently, in the future, the
company definitely wants to increase its private label
offerings across the board, Gillmore says.
"We are focused on increasing private label

exposure wall to wall," he says. "It is more important
now than ever before. We want customers to know
that they can find unique items at Gelson's that
are unique and different than what they find at the
competition."
Positioning those items under its own labels, he
says, allows Gelson's to "control that differentiation."
Top private label items include fresh salsa, hummus,
ravioli and eggs, Gillmore says.
Gelson's also has had good private label partnerships with specialty cheese companies who make
Gelson's exclusive product just for the retailer, often
teaming up with local breweries or wine makers for
pairings, Gillmore adds.
"We are growing private label in the fresh departments for certain," adds Kneeland. "We can be more
selective in our specifications, uniqueness of ingredients in private label."
Packaged salads, juices, soups and sandwiches are
among the top private label sellers in Gelson's perimeter departments, Kneeland says.
"For our strategy, branded items would be more
everyday NBEs, whereas items that excel and are
elevated are considered more for private label."
Saenz agrees that private label continues to grow.
"The focus is always going to be to try and leverage the top trending national brands or categories
with private label items that will increase profits and
grow sales," Saenz says. "Top quality private label
products create loyalty to your brand and keep your
customers."
Some of the top private label items in the meat
department are fresh all natural and organic chicken,
premium sliced bacon, fresh all-natural and organic
ground turkey, spiral sliced half hams and full cut ham
steaks, fresh dinner sausage and fresh whole all-natural and organic turkeys.
"For the meat department, your top volume
categories such as poultry, smoked meat, and fresh
and cooked dinner sausage will always be the best
categories to leverage private label items - if you can
deliver the quality and consistency," Saenz says. "At
Gelson's, our meat and seafood departments' goal is
to deliver great personal service, offer only the finest
quality products with the highest craftsmanship and
deliver a great eating experience a consistent basis."

Private label
sales have
increased by
$7.9 billion
across brickand-mortar
stores in the
past three
years.
Source: Nielsen

The private
label market
for bread was
pummeled
between mid2018 and
mid-2019,
with dollar
sales down 7%
and unit sales
down 11%.

The case for branded
Private label in the deli and prepared foods section is
less mature than in center-store, says Nathan Roe, senior manager of deli strategy and customer marketing
for Beaverton, Oregon-based Reser's Fine Foods.
As the nation's leader in fresh prepared foods for
the deli department, Reser's works with retail grocery
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MARCH 2020 - 9


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Supermarket Perimeter - March 2020

Table of Contents for the Digital Edition of Supermarket Perimeter - March 2020

Supermarket Perimeter - March 2020
Editor’s note - Pizza and burgers. Need I say more?
Contents
The Wire
PRIVATE or BRANDED?
GIVING BACK
Bakery - PRETZELS
Bakery - Muffins
Deli & prepared foods - Regional trends
Deli & prepared foods - Burger bars
Meat & Poultry - Free-from
Meat & Poultry - Grilling season
Produce - FORECAST 2020 — AND BEYOND
Produce - Greenhouse grown
Seafood - POKE
Food safety - Digital monitoring
Commissary Insider - Pizza
Commissary Insider - ENSURING FRESHNESS
Commissary Insider - Adding spice
Product Showcase
Supermarket Perimeter - March 2020 - Supermarket Perimeter - March 2020
Supermarket Perimeter - March 2020 - Supermarket Perimeter - March 2020
Supermarket Perimeter - March 2020 - 2
Supermarket Perimeter - March 2020 - Editor’s note - Pizza and burgers. Need I say more?
Supermarket Perimeter - March 2020 - Contents
Supermarket Perimeter - March 2020 - 5
Supermarket Perimeter - March 2020 - The Wire
Supermarket Perimeter - March 2020 - 7
Supermarket Perimeter - March 2020 - PRIVATE or BRANDED?
Supermarket Perimeter - March 2020 - 9
Supermarket Perimeter - March 2020 - 10
Supermarket Perimeter - March 2020 - 11
Supermarket Perimeter - March 2020 - GIVING BACK
Supermarket Perimeter - March 2020 - 13
Supermarket Perimeter - March 2020 - 14
Supermarket Perimeter - March 2020 - 15
Supermarket Perimeter - March 2020 - 16
Supermarket Perimeter - March 2020 - 17
Supermarket Perimeter - March 2020 - Bakery - PRETZELS
Supermarket Perimeter - March 2020 - 19
Supermarket Perimeter - March 2020 - 20
Supermarket Perimeter - March 2020 - 21
Supermarket Perimeter - March 2020 - Bakery - Muffins
Supermarket Perimeter - March 2020 - 23
Supermarket Perimeter - March 2020 - 24
Supermarket Perimeter - March 2020 - 25
Supermarket Perimeter - March 2020 - 26
Supermarket Perimeter - March 2020 - 27
Supermarket Perimeter - March 2020 - Deli & prepared foods - Regional trends
Supermarket Perimeter - March 2020 - 29
Supermarket Perimeter - March 2020 - 30
Supermarket Perimeter - March 2020 - 31
Supermarket Perimeter - March 2020 - Deli & prepared foods - Burger bars
Supermarket Perimeter - March 2020 - 33
Supermarket Perimeter - March 2020 - 34
Supermarket Perimeter - March 2020 - 35
Supermarket Perimeter - March 2020 - 36
Supermarket Perimeter - March 2020 - 37
Supermarket Perimeter - March 2020 - Meat & Poultry - Free-from
Supermarket Perimeter - March 2020 - 39
Supermarket Perimeter - March 2020 - 40
Supermarket Perimeter - March 2020 - 41
Supermarket Perimeter - March 2020 - 42
Supermarket Perimeter - March 2020 - 43
Supermarket Perimeter - March 2020 - Meat & Poultry - Grilling season
Supermarket Perimeter - March 2020 - 45
Supermarket Perimeter - March 2020 - 46
Supermarket Perimeter - March 2020 - 47
Supermarket Perimeter - March 2020 - Produce - FORECAST 2020 — AND BEYOND
Supermarket Perimeter - March 2020 - 49
Supermarket Perimeter - March 2020 - 50
Supermarket Perimeter - March 2020 - 51
Supermarket Perimeter - March 2020 - Produce - Greenhouse grown
Supermarket Perimeter - March 2020 - 53
Supermarket Perimeter - March 2020 - 54
Supermarket Perimeter - March 2020 - 55
Supermarket Perimeter - March 2020 - Seafood - POKE
Supermarket Perimeter - March 2020 - 57
Supermarket Perimeter - March 2020 - Food safety - Digital monitoring
Supermarket Perimeter - March 2020 - 59
Supermarket Perimeter - March 2020 - 60
Supermarket Perimeter - March 2020 - 61
Supermarket Perimeter - March 2020 - 62
Supermarket Perimeter - March 2020 - Commissary Insider - Pizza
Supermarket Perimeter - March 2020 - 64
Supermarket Perimeter - March 2020 - 65
Supermarket Perimeter - March 2020 - Commissary Insider - ENSURING FRESHNESS
Supermarket Perimeter - March 2020 - 67
Supermarket Perimeter - March 2020 - Commissary Insider - Adding spice
Supermarket Perimeter - March 2020 - 69
Supermarket Perimeter - March 2020 - 70
Supermarket Perimeter - March 2020 - 71
Supermarket Perimeter - March 2020 - Product Showcase
Supermarket Perimeter - March 2020 - 73
Supermarket Perimeter - March 2020 - 74
Supermarket Perimeter - March 2020 - 75
Supermarket Perimeter - March 2020 - 76
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