Meal solutions, family and value packs, and using e-commerce to build awareness of private brands are three areas where the Albertsons’ Own Brands team is looking to drive growth in the year ahead. The retailer highlighted new numbers and details around its private brand strategy in a special presentation for the investor community.
For its second "Albertsons Insights" presentation for investors, Albertsons focused on the Own Brands team including talks by Albertsons’ chief merchandising officer Geoff White and Chad Coester, the company's senior vice prsident of Own Brands.
The presentation echoed a lot of what Store Brands covered in its Retailer of the Year profile, which was highlighted during the call, such as how the Own Brands team operates like a CPG brand, building out nine powerhouse brands that can innovate and bring new products to the shelf in as little as 20 weeks.
Own Brands gain share
Sharing some store brands results: the presentation highlighted Own Brands as a $14 billion business with more than 12,000 SKUs across 500-plus categories. And in just about half of all of the categories it serves, the private brands rank as a top-three manufacturer.
Additional highlights from the presentation:
- In produce and packaged salads, Albertsons Own Brands have close to a 50% market share; 60% In dairy and and cheese, and 23% in the emerging coffee pods category;
- One hundred percent of the most loyal Albertsons customers have own brands in their basket and over the last 10 weeks they are spending more than 15% a trip than a household not considered store brands loyal; and
- Waterfront Bistro and the store brand seafood category is seeing a 50% growth rate.
Among the bright spots that Coester touched on was the strength of Albertsons' Signature Select brand, which represents just shy of 50% of its total portfolio. He noted that it has transitioned over the years to become more than just an entry-level price point product across categories, growing into a brand offering high-quality products with full-scale package redesigns that enable them to stand out in their respective categories.