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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Health & Wellness 2 8 Store Brands / February 2017 / lobal market research firms Mintel Group and Euromonitor describe the clean and clear label movement as a revolution. The Netherlands- based Innova Market Insights ranks "Clean Supreme" as the top food and beverage trend for 2017. While the movement is more entrenched in Europe, consumer demand for clean and clear label products is surging in the United States, especially among U.S. millennials — those born between 1982 and 2000, who now number 83.1 million, according to the U.S. Census Bureau, and will have $1.4 trillion in spending power by 2020 per some estimates. Manufacturers, large and small, are responding in a big way to consumer preferences for simple, wholesome food without chemical additives. Late last year, Campbell's Soup Co. debuted its Well Yes! clean label line of canned soups made without artificial colors, flavors or ingredients and without bisphenol A (BPA) in its can linings. And since 2015, General Mills and Kellogg's have been racing to remove artificial dyes and flavors from all of their cereals. Nothing But Real, a clean label snack start-up in Palm Beach Gardens, Fla., launched its first product last year — Oat Chocolate, a high-protein vegan beverage. "Let's take food back. Let's make products only from real ingredients — ingredients that are grown in fields and orchards or by Mother Nature," the company states on its website. Helena Lumme, who founded Nothing But Real with her husband, immigrated to the United States from Finland 20 years ago and was immediately struck by the heavily processed and chemical-laden nature of American food products. "Growing up in Scandinavia, it was a given that the products were healthy and didn't have any chemicals," she says. "So you can imagine the culture shock we experienced when we moved to the U.S." Lumme is heartened that American consumers of all generations are finally embracing natural food that is free from synthetic substances. "The trend is very real," says Scott Lindsay, president of Product Development Plus in Toronto, Ontario. "Consumers are becoming more and more informed about how making the right food and eating choices impacts their overall health and their longevity." With several notable exceptions, grocery retail- ers with store brands have been slower than national brands to introduce clean label lines or reformulate their existing products, overwhelmed by the perceived investment costs and by the sheer number of categories they carry. But retailers would be remiss not to seize this tremendous opportunity to win over health- and Clear opportunity Retailers that cater to consumer preferences for transparent, clean label products will be rewarded, industry experts contend By Carolyn Schierhorn

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