Store Brands

SEP 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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Category Intelligence: Vitamins and Supplements 6 2 Store Brands / September 2016 / www.storebrands.info meanwhile, offering a private brand lineup requires a lot of shelf space and inventory dollars, says Bill Bishop, chief architect of Barrington, Ill.- based Brick Meets Click, which focuses on how consumer expectations are changing as in-store and online shopping experiences merge. "Private label vitamins offer a good price/ value to customers who are looking for that, and they will shop where they get it," he notes. "It's important for retailers to offer customers the opening price point on private label items, but they should only merchandise the fast-moving products in the store and provide the rest of the assortment online. This way they get the best of both worlds." Leverage trends For continued success on the store brand side, Drinkwalter advises retailers to research and introduce new vitamins and supplements as quickly as possible. "Many natural foods stores have less cumbersome new product introduction requirements with a shorter timeline and are able to get new products on their shelves at the beginning of the new product cycle," she adds. "Consumers read and hear about new products via social media, the Internet, friends and family, and are anxious to see the newest products at their favorite stores as they learn about them." Retailers should also consider alternate product formats such as liquids or gummies, which are easier to swallow and digest, more palatable and available in various flavors. And to educate and engage consumers, retailers might want to provide several simple statements on a display stand explaining how their various store brand products differ from similar national brand products, Stobaugh suggests. "For example, 'Contains the same active ingredients as Brand X, but also has these added ingredients for additional health benefits,'" he says. Package, market it right Improved packaging boosts the visibility of own- brand vitamins and supplements in store. In its September 2015 "Vitamins, Minerals and Supplements US" report, global market research firm Mintel urges vitamin and supplement marketers to avoid a functional approach to vitamin packaging using round childproof medicine bottles with limited color schemes and displaying only the brand name and vitamin type. Instead, retailers should consider using bolder colors and imagery and employing a larger variety of packaging types and sizes to capture shoppers' attention. When it comes to the packaging materials, the choice largely depends on the product's ingredients — and many vitamin and supplement ingredients require a barrier to ensure minimal exposure to heat and moisture. "Most vitamins and supplements are packaged in standard high-density polyethylene plastic bottles and may often include cotton and a desiccant," Stobaugh says. On the marketing front, Stobaugh suggests that retailers focus on just one or two differentiators each time a product is on promotion. "When [retailers] promote or feature the product again in the next month or quarter, they should focus on several different factors that provide added benefits to the consumer versus the national brand product," he says. And today's smart consumers are looking for verified product information. They want to know Do consider going online only with own- brand vitamins outside of the fast- moving set. Don't ignore newer delivery formats such as gummies and liquids. Source: IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending June 12, 2016. Vitamin and supplement category performance Dollar Sales (in millions) Change vs. Year Ago Dollar Share Unit Sales (in millions) Change vs. Year Ago Avg. Price Per Unit Liquid vitamins/minerals Mineral supplements Multivitamins 1- & 2-letter vitamins Private Label All Brands Private Label All Brands Private Label All Brands Private Label All Brands $31.2 -0.4% 8.0 5.4 +1.6% $5.73 $388.6 +0.6% 100% 54.2 -2.3% $7.17 $1,126.2 +1.2% 32.6% 126.3 -1.6% $8.92 $3,450.7 +6.5% 100% 303.9 +2.0% $11.35 $301.1 -1.8% 17.0% 44.7 -4.0% $6.73 $1,766.5 +1.3% 100% 180.7 -1.2% $9.77 $427.5 +1.9% 35.6% 67.4 +0.3% $6.34 $1,199.8 +6.6% 100% 162.3 +2.6% $7.39

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