Supermarket Perimeter - June 2024 - 33

always a positive side effect, this should not take away from the fact that
there will always be a segment of shoppers who will view private label
as something somewhat less than a major brand.
Future approach
But there remains a common thread of commitment among leading
store brand retailers to the quality and value of the products
they offer, Davies shared. FMI found 82% of food retailers plan to
" moderately " or " significantly " increase private label investment in the
next two years.
This points to the ongoing importance of pursuing innovation
strategies in private label products and making these products an
extension of the store's value proposition. CRB, Kansas City, Mo., finds
that as the cost of major brand products continues to increase, private
label's ability to invest in product improvement and increase their prices
becomes more feasible.
" Many private label companies are building brands on trending
categories such as gluten- or grain-free, non-GMO, Kosher, all-natural
and allergen free, " said Amy Estrada, CRB project manager. " These
typically higher-cost categories are increasing presence in the market
for private labels and, while their costs are increasing, those increases
are less noticeable than major brands. "
Utilizing third-party producers and bakeries can also allow privatelabel
companies to locate the capabilities and flexibilities necessary
without a need for major capital investment. As private-label companies
expand their market presence, the need for co-manufacturing will
continue to grow, she continued.
Altobelli offered opportunities for innovation in bread products
in alignment with current health and wellness trends such as keto/
low carb, grain and seeded options, and slightly sweeter profiles of
Hawaiian, brioche and pretzel varieties. Tried-and-true flavors such as
vanilla, apple and chocolate, which drive the most dollar sales across
desserts, and plain and blueberry in morning bakery, offer a solid
foundation to explore the continuing " newstalgia " trend. Or take a note
from the indulgent, pick-me-up flavors finding success in the perimeter
such as peanut butter, triple chocolate and confetti rainbow.
By implementing an inclusive approach of packaging, products,
categories, flavors, branding, supply, purchasing, logistics, inventory
management, merchandising and marketing, private label has the
potential to become the model for products that push the boundaries to
become top-of-mind consumer choices.
" The commitment and continued innovation of their own brands in
response to macro-trending consumer wants and needs are what we
believe are the cornerstones for continued success and expansion of
store brands, " Davies said.
" We believe it's the quality and innovation under the retailer's own
brand that they know and trust that have consumers loyal to their
retailer's brand. "
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