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