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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2015 The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. 6 Store Brands / February 2017 / www.storebrands.info There is money on the table, but it must be earned anted: Deep thinkers to help create ground-breaking private label products. People who are interested in only knocking off top-performing national brands and turning them into store brands need not apply. This is a job listing, perhaps, that retailers from all walks should consider posting under the "Careers" heading on their websites. While private label sales have cooled the past few years, there is plenty of opportunity for retailers to excel with own brands. But it won't be easy. It will take planning and research, planning and research and even more planning and research. It will take a confident willingness for retailers to reach deep into their pockets and invest. A confident willingness to invest means that retailers won't think twice about what they are doing. A shadow of doubt in the process could disrupt the entire process. Here's why there is opportunity: More than 80 percent of meals are sourced from home, according to a recent study by the NPD Group. That stat should have retailers licking their chops. And even while fewer than 20 percent of meals are sourced from foodservice, retailers also have an opportunity to capitalize on this segment through own-brand prepared foods. In its study, the NPD Group notes that retailers and manufacturers need to capitalize on consumers' desires for two words — "fresh" and "authentic." While they are two words that retailers might be tired of hearing about, they are words that retailers must face up to because they represent the current trends that help define the food industry. The two words also might seem as murky as mud soup to some retailers, but this is where retailers have to stop and ask themselves a few questions: n What does " fresh" mean to our clientele, and how " fresh" do I need to go? n What does "authentic" mean to our clientele, and how much "authentic" could be too authentic? For instance, "fresh" might not mean that you must go to extremes and offer un- pasteurized water buffalo milk in the dairy section. "Authentic" might not mean that you must offer wasabi/sriracha/coconut-flavored potato chips in the snack sector. But this is where the hard work and investment comes in: You must figure out what to offer and how "fresh" and "authentic" applies to your operation. For instance, if you do business where I live, Cleveland, I'll bet you a year's worth of private label plain pizza (not authentic) that you could find authenticity by intro- ducing an array of own brand fresh-and-flavored Polish sausages and pierogies. In this land, those two items are more popular than LeBron. Let's get back to money and investing for a second. I know those two things might be holding you back. According to a recent study by the Food Marketing Institute, 57 percent of supermarkets and regional grocery retailers say that "capi- tal investment to drive innovation" is the biggest threat to private label. Money might be tight. I get it. But just remember that there is also money sit- ting on the table — the one with the sign that says "private label." SB Editor's Note Lawrence Aylward, Editor-in-Chief [email protected] Business Intelligence for an Evolving Market 570 Lake Cook Rd. Suite 310, Deerfield, IL 60015 (224) 632-8200 • Fax: (224) 632-8266 Brand Director Kevin Francella (973) 264-4389 [email protected] EDITORIAL Editor-in-Chief Lawrence Aylward (330) 635-2586 [email protected] Managing Editor Carolyn Schierhorn (224) 231-6359 [email protected] Contributing Writers Kathie Canning, Dana Cvetan, Rich Mitchell ADVERTISING & SALES Associate Brand Director Suzanne Caputo (201) 855-7628 [email protected] Regional Sales Manager Mike Mandozzi (224) 632-8194 [email protected] CUSTOM MEDIA VP, Custom Media Division Pierce Hollingsworth (224) 632-8229 [email protected] MARKETING VP, Marketing & Communications Bruce Hendrickson (224) 632-8214 [email protected] Director of Market Research Debra Chanil (201) 855-7605 [email protected] AUDIENCE DEVELOPMENT Director of Audience Development Gail Reboletti [email protected] Audience Development Manager Shelly Patton (215) 301-0593 [email protected] List Rental The Information Refinery (800) 529-9020 Brian Clotworthy Subscriber Services/Single-copy Purchases 978-671-0449 [email protected] ART/PRODUCTION Director of Production Kathryn Homenick (973) 358-4875 [email protected] Advertising/Production Manager Bette Boyers (224) 632-8251 [email protected] Fax: (888) 445-1123 Creative Director Jeff Bowes [email protected] EVENTS • MARKETING • DIGITAL • RESEARCH • CIRCULATION CORPORATE OFFICERS Executive Chairman Alan Glass President & CEO Peter Hoyt Chief Operating Officer Richard Rivera Chief Brand Officer Jeff Greisch Chief Financial Officer Len Farrell Chief Business Development Officer & President, Ensemble IQ Canada Korry Stagnito Chief Customer Officer/ President of Strategic Platforms Ned Bardic Chief Digital Officer Joel Hughes Chief Human Resources Officer Greg Flores

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