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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Category Intelligence: Oils & Vinegars 5 6 Store Brands / January 2017 / adding that organic selections already are becoming prevalent. "Organic canola oil and olive oil are growth drivers in their respective categories," he notes. "Organic farming has grown to high levels, and sustainability is much better than it was 10 years ago when organics tried to launch in this country." Better-for-you options, including organics, also are becoming more prominent in the vinegar sector, Mikolon adds. "Unfiltered raw vinegars along with other healthy drinkable vinegars are popular consumer trends," she says. "There are more of these products on shelves from both the national brands and store brands." Other health-oriented product attributes include natural flavors, fewer additives, no preservatives or added sugars, and non-GMO ingredients, Mikolon says. "Retailers need to respond to the direction consumers are moving in," she notes. "At the same time, they should promote alternative usages for vinegars that consumers may not be aware of, and provide more premium options." Detailing the host of conventional and untraditional uses of oil and vinegar can generate revenues for store brands, Coleman states. "The American consumer is waking up to the fact that there are different quality levels for olive oil as well as a wide array of uses in the kitchen such as for frying and cooking," he says. "As long as the profits for private brands are there, the staying power will only grow stronger in the years to come." Accentuate the positive Merchandisers of extra virgin olive oil, meanwhile, can distinguish their selections by spotlighting that the items have gone through a certification process that traces the olive oil back to its source, Russo- Tieri states. That is crucial because many sellers are allegedly calling conventional olive oils "extra virgin" and charging an unwarranted premium for the items, he notes. Producers of the higher-priced and higher- quality extra virgin olive oil typically crush olives and extract the juice without the use of chemicals and industrial refining. "More consumers are becoming wary of what they are buying and are putting a strong emphasis on traceability," Russo-Tieri notes. "Certifications are the best ways to regain trust and attract additional customers." Because many national brands do not certify that their olive oil is extra virgin, retailers should aggressively spotlight the store brands with that designation in their marketing, he says. "It gives the store brands a leg up if customers know that their extra virgin olive oil is the real deal," Russo-Tieri adds. "It lets shoppers then know that they are getting the proper health benefits and flavor." To best highlight store brands within outlets, meanwhile, retailers should situate items on shelves in the "hip to shoulder range and never on the top or bottom shelves," Coleman notes, adding that product demos are a powerful way to generate activity. For maximum visibility, retailers can place bread and an open bottle of olive oil on the middle shelf of a display for tasting, with selections Oil and vinegar category performance Dollar Sales (in millions) Change vs. Year Ago Dollar Share Unit Sales (in millions) Change vs. Year Ago Avg. Price Per Unit Cooking and salad oils Olive oil Vinegar Private Label All Brands Private Label All Brands Private Label All Brands $734.2 +0.0% 40.5% 201.0 +0.1% $3.64 $1,810.6 -1.1% 100% 428.7 -0.2% $4.22 $341.2 +4.6% 29.0% 50.6 +0.7% $6.74 $1,178.5 +7.0% 100% 154.6 +5.3% $7.62 $251.6 +3.1% 45.4% 121.6 -0.1% $2.07 $554.6 +12.4% 100% 212.6 +6.7% $2.61 Source: InfoScan Reviews, 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 Oct. 30, 2016. Note: Does not include all oil and vinegar subcategories. Do consider uniquely and attractively shaped bottles for oils and vinegars.

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