Store Brands

FEB 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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1 0 Store Brands / February 2017 / www.storebrands.info Around the Industry Study: Private label will grow 2.95% through 2020 In its new report, Research and Markets predicts the private label food and beverage market in the United States will grow at a compound annual growth rate of 2.95 percent through 2020. The report, "Private-label Food and Beverages Market in the US 2016-2020," calculates the market size and considers the revenue generated from the retail sales of various private label food and beverage products to individual consumers in the U.S. According to the report, large retailers are now increasing private- label brand offerings due to the attractiveness of the market and high sales coming from private brands. Daymon sold in $413 million deal Stamford, Conn.-based Daymon Worldwide, an expert in private brand development, has been acquired by Bain Capital Private Equity and Chinese supermarket chain Yonghui Superstores for $413 million. Bain will have a 60 percent stake in Daymon, while Yonghui will have 40 percent. Yonghui said it will fund the deal by bank borrowing and cash while Bain said it will buy the stake from existing shareholders of Daymon, which was established in 1970. In a press release, Daymon CEO Jim Holbrook said the transaction is a "very positive development for our company, our employees and our clients." Kroger says stores are filling 10,000 positions Cincinnati-based The Kroger Co. said it is hiring to fill an estimated 10,000 permanent positions in its supermarket divisions. Over the past eight years, Kroger has created more than 86,000 permanent new jobs, the company stated in a press release. "Kroger's growth trajectory continues to create opportunities for our people to advance their careers and to do that in a fun team environment with great benefits," said Tim Massa, Kroger's group vice president of human resources and labor relations, in a statement. 7-Eleven brings pizza for breakfast 7-Eleven has rolled out ready-to-eat breakfast pizza at participating stores. The Irving, Texas-based convenience chain's pizza is topped with smoked bacon, breakfast sausage, hickory-smoked ham, scrambled eggs, cheddar and mozzarella cheese, and peppered cream gravy. "Mornings are our busiest time of day, and adding a breakfast pizza will prove to be as popular with the a.m. crowd as our other pizzas are for lunch and dinner," said Dennis Phelps, 7-Eleven vice president of fresh food and proprietary. SB SHORT TAKES Online grocery shopping could top $100 billion by 2025 By Kevin Francella O nline grocery shopping could reach $100 billion by 2025, represent- ing nearly a quarter of all grocery sales, according to preliminary find- ings of a multi-year joint study from the Food Marketing Institute and Nielsen. FMI and Nielsen released a preview of their Digitally Engaged Food Shopper analysis at the FMI Midwinter Conference in Scottsdale, Ariz., held Jan. 27-Jan. 30. Additional findings from this study show that online food shopping will reach maturation in the U.S. within the next decade, far faster than other industries that have gone online be- fore such as publishing or banking. The research also revealed that the center store is likely to shift online faster than other departments, suggesting a fundamental evaluation of the role the store plays in digital food shopping. The research estimates that in the current climate of technology adoption and evolution, consumer spend on online grocery shopping could reach $100 billion, which is the equivalent of 3,900 grocery stores based on store volume. "While we are more connected than ever to influence what shoppers buy, the window to influence those moments is narrowing," said Mark Baum, FMI's chief collaboration officer. "FMI and its members will need to seize the opportunity to harness new skills and collaborate more seamlessly than ever before to effectively reach these digitally savvy food shoppers. We're building the tools to help our members assess where they are in their connected commerce strategies." "The grocery business truly is at a digital tipping point, where every aspect of the shopper's journey will soon be influenced by digital, and increasingly enabled by digital platforms," said Chris Morley, president of U.S. Buy at Nielsen. "The need for retailers and manufacturers to know the differences around how consumers shop online versus in-store is greater than ever before. Analytics will be key for retailers and manufacturers to understand the digitally engaged food shopper on a deeper level." The Digitally Engaged Food Shopper study is part of a strategic alliance and multi-year initiative with FMI and Nielsen to uncover comprehensive insights on current and future digital shopping behaviors within the food retail market- place. A copy of the full report is available at www.fmi.org/digital-shopper. SB Francella is brand director for Store Brands. PARIS HILTON, known for her highfalutin social life, is teaming with German retailer LIDL, known for its low-priced own brands, to sell a range of hair-styling products throughout Lidl's European stores.

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