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Dive brief:

  • Albertsons has added 13 new frozen desserts to its private label private label portfolio, including four Signature Select 1.5 quart ice creams, three Open Nature one quart sorbets and six Open Nature herbal frozen desserts with a pint made from oat milk and coconut milk, according to a press release.
  • Flavors include cotton candy, cinnamon churro, honey bread swirl, lemon cheesecake, black raspberry chips, vanilla oatmeal, oatmeal cookies, oatmeal crumble with blueberries, vanilla caramel, toasted coconut, peanut butter chips, salted chocolate caramel, peach, passion fruit and strawberry.
  • The new products can be found in the frozen desserts section of stores under banners such as Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Randalls, United Supermarkets, Pavilions and Star Market.

Dive overview:

With its latest ice cream launch, Albertsons is following consumer demand and trends with herbal products and unique flavors that shoppers may not be able to find under national brands.

Albertsons differentiates itself from its nationally branded counterparts, which experts say is key to a private label company’s success. Private labels were once seen as cheaper and less desirable alternatives to national brands as retailers focused on making copycat products rather than standing out, but that is changing as grocers invest money in it. R&D.

Albertsons has added a plethora of items to its private label portfolio over the years. In 2018, the retailer initially launched its private label Signature Reserve line of ice cream with products that the grocer says were chosen by kitchen professionals and marketers. This line was part of the grocer’s efforts to launch 1,400 new products for banners in 2018 – double the number of products deployed the previous year.

To further improve its own brands portfolio, in January the distributor named Alice Chan, a CPG professional, as Vice President of Sales and Marketing for her Private Label business, which gave her the responsibility of developing and executing strategic go-to-market initiatives and plans.

Albertson’s decision to add additional ice cream flavors may have stemmed from positive comments about its expansion in 2018. Private label ice cream launches are also all the rage in the grocery industry. In May, Publix launched new premium ice cream flavors and Tops Markets added new flavors to its line of premium house brand ice creams last year.

Over the years, private label sales have made a significant contribution to Albertsons results, and they play an important role in the overall strategy of the company. According to Albertsons third quarter 2019 earnings report, private label sales account for a quarter of the company’s sales, and during its IPO filing in March, the company said it expects its growth to come from private labels as well as digital initiatives and store updates.

In a recent interview with Grocery Dive, the CEO of Albertsons Vivek Sankaran said private label growth will continue to be a core strategy for the company.

“We have so much room to go into other categories. And we are the leader in so many categories like dairy and pizza,” he said. “We are like a GIC retail business. “

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