Store Brands

JAN 2017

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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5 2 Store Brands / January 2017 / Category Intelligence: Skin Care Products and Cosmetics consumer interest, citing information from IRI and Chicago-based SPINS. Japan's matcha tea — the most potent of green teas — also is in growth mode, Bernstein notes. "Matcha is the most potent of all green teas in terms of its antioxidant components, and it goes very well in many other iterations — with milk, in smoothies, in yogurt, with citrus or ginger, and with chocolate," he explains. Consider the environment The right packaging also could spur private brand growth within the coffee and tea category. Shalo notes that simplicity, clarity, transparency and sustainability are four packaging trends that show signs of staying power. Of those trends, sustainability is perhaps the biggest, at least when it comes to single-cup coffee and tea formats. As Dockery points out, packaging waste has been cited as the biggest reason consumers are not drinking more single- serve coffee. But many store brand manufacturers have been working to address the situation. For its part, Massimo Zanetti introduced the 100 percent compostable PURPOD100 coffee pod. Certified by the Biodegradable Products Institute, the pod is made of bio-based materials that will break down and turn into soil in less than six months. Tops Markets LLC, Williamsville, N.Y., recently partnered with Massimo Zanetti to offer 12 varieties of 100 percent compostable single-serve coffee pods under the TOPS Coffee House Creations brand. Hansen agrees that sustainability-minded improvements to single-cup coffee and tea formats are of high consumer interest. "Initially cost was a prohibitive factor, but intense competition is quickly driving down the packaging costs to manufacture," he adds. On the coffee side, Goldstein also points to an emerging trend toward larger family bulk packs or value packs for consumers seeking value pricing and variety. Educate and engage them To bolster growth of store brand coffees and teas, retailers also will want to look beyond product and packaging development — to strategic marketing and merchandising. For the experiential coffee segment, retailers will want to think both inside and outside the store, Dockery suggests. Inside the store, retailers could engage in sampling events and consumer education. "The new nutritional guidelines suggest consumption of three to five cups of coffee a day with validation of benefit for brain and liver function," he says. "Assistance in educating consumers is a significant opportunity." But retailers should make sure the employees performing the demos and other educational activities actually have interest in and knowledge about coffee and tea, Bernstein cautions. "With the growth of specialty and craft in all categories, it is important to have a person conducting a demo beside a display that, when combined, actually excites, educates and inspires shoppers in the store — and thus drives trial and repeat," he says. Outside the store, retailers could leverage social media platforms to educate consumers about the origins of coffee, present fun coffee facts and discuss the quality of own-brand offerings, Dockery adds. The distinctive aroma of coffee could also go a long way to market store brand offerings. "The aroma that accompanies in-store coffee roasting is one of the greatest tools for building awareness and sales for store brand coffee," Shalo maintains. On the merchandising front, Dockery Do consider the environmental footprint of store brand single-cup coffee and tea.

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