Store Brands

APR 2016

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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www.storebrands.info / April 2016 / Store Brands 4 7 "Brands and retailers continue using UPSD bottles on premium formulations to offer consumers a better package," Hackbarth notes. "The 20-ounce private brand UPSD organic ketchup is the leading organic ketchup sold because it meets the consumers' desire for quality formula, packaging and value." Get their attention Smart retailers merchandise their own-brand organic SKUs in line within the category, as well as the specialty area — if the store has one, Hackbarth says. "The key to generating incremental sales for any condiment is off-shelf merchandising in other areas of the store with complementary menu items," he adds. "Fremont packs most ketchup sizes in display- ready open-front cases to save money in store and make it easier to merchandise off shelf." While cross-merchandising also catches consumer attention and increases sales opportunities, sampling eliminates barriers for first-time purchases. Two-for one promotions also attract more frugal consumers, Mintel's center-store study suggests. Look ahead In June, Vermont will become the first state to require GMO labeling, Balsamo says. Mandatory GMO labeling from this state and others in the future is expected to result in a sharp increase in organic product production, as organic products, by definition, are GMO-free. "Increasing prevalence of organic products will mean lower prices and better access for Americans," she adds. If organic prices decline, there could be opportunity for retailers to expand organic awareness beyond more-affluent consumers; roughly 50 percent of consumers with a household income of less than $50,000 do not purchase organic foods, says William Roberts Jr., senior food and drink analyst for Mintel and author of "Organic Food and Beverage Shoppers U.S.," published in March. "With more mass merchandisers getting into organic food, price points should drop," he adds. Still, some consumers remain skeptical of organics due to the preponderance of natural claims plus their limited awareness of organic regulations. "Companies will need to address consumers in a more open and transparent way to maintain credibility in this confusing market," Roberts cautions. SB

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