Consumer Reports, reported in a head-to-head qualitative blind taste test 29 store branded food products were tested. Get this, 23 of the 29 private label – store branded products scored as good as or better than the national brand.
Grocerant food that is ready-to-eat or ready-to-heat is now finding it’s way in large store formats like Safeway’s Lifestyle stores, HEB’s Central Market, Harris Teeter, Buehler’s and Whole Foods. Utilizing traditional category management techniques all of these companies are seeing success. However those that have incorporated Brand Marketing into their food offerings and positioning strategy have seen increased customer frequency and niche margins rise.
The same is occurring in the Convenience store side with companies like AMPM bundling meal deals and new products, Racetrac improving coffee and Quick Trip growing with solid consistent product offerings. Branding the food offerings creating food products that become an entity with identity will level the field with chain restaurant operators the likes of Burger King, Olive Garden and Ruby Tuesday’s. More important it will increase customer frequency, building top-line revenue and bottom-line profits. Watch for Brand Managers being hired in all of these channels.
Join me here on my blog for insights, information and inspiration. Since 1991 Foodservice Solutions of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions visit http://www.linkedin.com/in/grocerant or on Facebook at Steven Johnson.