The Fresh Market Starts Private Label Product Brand
The grocery store food chain Fresh Market is starting their own private labels product line.
With more than 1,500 private brandded products to be specific.
This new private label brand will be called ‘Everyday Extraordinary’ and according to Fresh Market, will exceed the benchmark comparison brand by at least one attribute.
This new private label brand will now include potato chips, sulfate-free hand soaps, lotions with essential oils, organic products, and peanut butter cookies. The signature line will have food products imported from Italy, and will also have imported frozen pizzas.
“Consumers typically view store brands as generic versions of well-known brand names, but it is the opposite with The Fresh Market,” said Michelle Beck, director, private label at the specialty grocer. “In order for us to put our name on a product, it has to be better than the best-selling brand in that category.”
Fresh market’s new private label brand will also have seasonal foods like coffee, cookies, snack mixes, pastries, and more. Custom private labels are now a new trend where retailers see they can profit by selling their own private brand.
The move to produce high quality consumer packaged goods is an increasing trend with national grocery store chains.
The Private Label Brand Race Heats Up
Just a few months ago, Target started a private labels brand called ‘Good & Gather’.
The Costco ‘Kirkland’ brand sold $39 billion worth of products in 2018. Famous billionaire, and investor Warren Buffet said that sales figure crushed name brand sales like Kraft-Heinz, who only generated $26 billion in 2018.
Younger millennial consumers, who came of age in the 2008 recession, are less dependent on brands and brand loyalty compared to their parents and grandparents.
BJ’s wholesale club recently announced two new websites, Berkley Jensen and Wellsley Farms, dedicated to selling their consumer packaged goods products. Using dedicated websites to promote the custom label brand is something never seen before.
"If I were a Consumer Packaged Goods maker or retailer, I would definitely have to figure out what should I do now," Mihir Kittur, co-founder and chief commercial officer at e-commerce customer engagement firm Ugam, told Retail Dive. "They’re clearly seeing pressure from subscriptions, like The Dollar Shaving Club, and private label. But it depends — across the board, there are brand-conscious shoppers and price-conscious shoppers. As people get more price sensitive, they start to move to private label, and that will happen more in any economic downturn."
Amazon has also started their own custom labels brand, called Amazon Basics. They have even been known to duplicate the best selling products on their website, and it could be a clone of your best selling product.
Many of the Amazon Private label products are not food, but that might change soon since Amazon bought out Whole Foods in 2017.
Kroger and Albertsons have also joined the private label race, revamping their private labels on brands in recent months.
What Does This Mean For Consumers?
Supermarket private label branding has come a long way in the past few years, rebranding themselves from a discount product, to high quality products.
Supermarkets and retailers know that the custom label consumer packaged goods are not going away anytime soon, and are stepping up to the plate to hit a homerun out of the park with more quality consumer packaged goods.