Sometimes when you
have 19+ banners, and corporate brand managers outnumber the number of banners
you have, and your sales lag industry leaders you have no other choice but to
seek-out partnerships for new points of distribution praying for some luck to
drive sales. Does anyone think that’s
just what Kroger is doing when it
formed a partnership with Alibaba.com’s Tmall Global site, which features
foreign products?
This new partnership
enables Kroger to get a foothold in global sales for the first time in its
135-year history and pretend it is keeping pace with rivals such as Walmart.
The fact is Walmart sell Walmart branded product in other countries edifying
its brand value while Kroger is selling it Simple Truth private label products.
Steven Johnson,
Grocerant Guru® at Tacoma, WA based Foodservice Solutions® wondering out loud
asked is this a new avenue of distribution to drive top line sale and bottom
line profits or is it an avenue of distribution to unload over produced
products?
Kroger said the
company would launch the offer with a mix of dietary supplements and its
private-label Simple Truth products that it sells online in the U.S. through
Vitacost.com and through its online stores for pickup or delivery, where
available.
The deal is the
latest in a string of announcements – many of them partnerships – supporting
Kroger’s $900 million Restock initiative announced last
year. Kroger said the move will support the strategies objectives to “redefine
the grocery experience” through its own brands, and to open new revenue
streams through strategic partnerships.
Simple Truth has
quickly become the second-largest brand sold in Kroger stores since launching
five years ago. In 2018, Simple Truth reached more than $2 billion in annual
sales, making it the largest natural and organic brand in America. Does your
company have more brand managers than banners?
Are you a retailer or a manufacture? Do you understand brand integration,
messaging, or how to edify your brand value?
Foodservice
Solutions®
specializes in outsourced food marketing and business development ideations. We
can help you identify, quantify and qualify additional food retail segment
opportunities or a new menu product segment and brand and menu integration
strategy. Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit
Facebook.com/Steven Johnson, Linkedin.com/in/grocerant/ or twitter.com/grocerant
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