Supermarket Perimeter - June 2023 - 18

Bakery: Private label
Know the audience and its needs
To create a thriving private label brand, manufacturers must understand
the geography, demographics, retailer profile, category and shopper
when creating products. Currently, purchases of private label tend
to skew older, attracting younger Boomers and retirees. But budgetconscious
Millennials are also passionate about exploring private label
products that push the boundaries of flavor and innovation.
Adventure Bakery, Sanford, Fla., works with smaller companies
looking to scale up their products. The woman- and minority-owned
business includes a team of seasoned professionals and a network of
sister companies to meet the needs of private label manufacturers.
This includes custom recipe formulation, R&D, production, packaging,
warehousing and fulfillment.
Bakery on Main, Hartford, Ct., is another private label manufacturer
ready to move an idea from concept to a consumer-ready product. As a
private label partner, the Bakery on Main team includes dedicated food
scientists and food safety and R&D experts. This includes assistance
with third-party certifications such as USDA Organic, Non GMO Project,
Certified Gluten Free, vegan, Paleo Friendly and Kosher to meet the
need for specialty products.
Like other grocery items, inflation is also pushing up prices of
traditional flour brands. Unit sales of private label flour year-over-year
in April 2023 were up almost 9% when compared to April 2022. The
growth of private label flour is currently outpacing that of the retail flour
18 - JUNE 2023
category and gaining share from brands at 3.3 percentage points by
volume, according to Ardent Mills, Denver. In response, the company
launched BakeHaven private label flour targeted at independent, smallchain
grocery retailers and convenience stores.
Coming full circle
To generate buzz around private label products and to create a setting
where store brands are actively sought out, building customer loyalty is
critical. In the grocery and club spaces, Wegman's, Kroger, Aldi, Trader
Joe's and Costco are well-known for making buzz-worthy privatelabel
products in creative, of-the-moment flavor combinations that
push traditional boundaries. Such an approach is key to creating a
comprehensive customer experience that's increasingly seen as the
new retail currency, something that's hard to replicate online.
" Store brands are a powerful retailer component that provides
important points of differentiation, competitive advantage and builds
consumer loyalty, " said Peggy Davis, president, PLMA.
To create such an environment, thriving private-label brands will
need to prioritize agility, bringing new products and new flavors to
market quickly. This includes the creation of captivating LTOs and
seasonal products designed to surprise and delight. Such an approach,
along with the use of competitive value pricing, can help ensure
private label products continue to build strong customer loyalty and a
profitable model today and in the future.
supermarketperimeter.com
Andriy Blokhin - stock.adobe.com
Trader Joe's is
famous for making
buzz-worthy private
label products that
push the envelope.
http://www.supermarketperimeter.com
Supermarket Perimeter - June 2023

Table of Contents for the Digital Edition of Supermarket Perimeter - June 2023
