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Federated's CEO Talks Opportunities And Challenges

Jeffery Gross shared his insights on the role the company plays helping independent grocers remain competitive.
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Jeff Gross Federated
Federated President & CEO Jeffery Gross.

For more than 95 years, Federated Group has provided grocers with quality private brand products that allow regional players to remain competitive with the larger grocery retailers in the market.

In July, the company named Jeffery Gross its new president and chief executive officer. No stranger to Federated, Gross for the prior 13 years served as the company’s vice president and general counsel. 

In charge of the company at a time when demand for private brand products is strong and is expected to continue to grow, Gross is working off the company’s foundation that’s nearly a century old while also staying nimble to meet the ever-changing needs of consumers.

Recently, Gross spoke with Store Brands to share his vision for the company along with the opportunities and challenges that lie ahead. 

STORE BRANDS: Federated has a history that dates back more than 90 years. How does that history shape your approach moving forward?

JEFFERY GROSS: Federated has been in business for almost 100 years, which is pretty remarkable and we have a long history in grocery and in particular private brands. Our Red & White brand goes back to our early days and that brand played a similar role to the private brands we have today, especially for independent grocers as they compete against today’s larger retailers. I’m mindful of the company’s long tradition and the responsibility to guide Federated forward as the grocery industry continues to evolve.

SB: What are the values and characteristics that remain central to Federated’s identity?

JG: People always ask me what we do here at Federated, and my answer to them is “Where do I start?” We’re focused on store brands and focused on supporting the independent grocer. That’s really our central focus, but we do other things as well. Store brands are such an important part of an independent grocer’s ability to compete against the bigger retailers out there. The recent report about private brands from FMI showed just how important a really good store brand program is in terms of driving consumer loyalty and the decisions they make about where they shop. Consumers today are much more open to private brands and our focus continues to be on having an assortment of own brands that are as good or better than the national brands. 

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Federated Life Every Day Brand
Federated sells private label products under the Life Every Day brand.

SB: As the consumer perception of private brands continues to evolve positively, what impact does that have on how Federated approaches developing new products?

JG: We're always looking for innovation in terms of products, package designs, and packaging. But at the end of the day, we have to lean on what our customers want. Sometimes it's a conversation we have with our customers to get them into a comfort zone to try something that we think is unique or a bit different. We’re not in a position where we can chase after everything new. I think we try to weave through the things that may seem promising and aren't just a flash in the pan. We want to hone in on those things we think are going to be more enduring. 

SB: When you speak to your retail customers, what are they hearing from their customers in terms of the types of products they want?

JG: Price is so important to the end consumer. So, for us, we have to work at creating products that offer a good value proposition. But there is a lot of pressure around the entry pricepoint in categories. That is a topic that comes up a lot because consumers need products that cover the basics. Going forward, we’re hopeful that the economic climate will improve and settle down a bit. This will allow consumers to breathe a bit and be under less pressure. In that environment, the national brand equivalent is going to play a bigger role in terms of earning a share of the consumer’s shopping cart. 

SB: Given the economic challenges that have faced consumers in recent years, has Federated’s role become more important?

JG: I believe so. There has been consolidation in the supplier community and that creates some challenges and supply chain issues. Additionally, we can help smaller independent retailers navigate the business climate more effectively in a variety of ways. One of the best ways to compete against larger retailers is having a really good selection of store brands. 

Federated Foods Better Valu
Federated highlights its private label selection with eye-catching packaging.

SB: In the past two years we’ve seen retailers and cooperatives work to advertise private brands to consumers. Is Federated doing something similar with the private brands it offers?

JG: We have placed more emphasis on upping our game in terms of marketing. We brought in Christina (Fogal, Federated’s marketing manager) to spearhead that effort. We have a presence across several different social media platforms that allow us to promote our brands. We have been pushing out that information in a targeted way to specific zip codes and specific types of consumers. We also do traditional marketing such as point-of-purchase materials, and shelf hangers to promote the brands. Going forward, we will be increasing our investment in how we market our products and in 2025 will devote more resources to that effort.

SB: What do you see as some of the biggest challenges facing Federated?

JG: We always have an eye on the overall economic climate of the country. Currently, it’s a mixed bag. The traditional metrics show the economy is in a really good place, which is good for business. But for a lot of people, costs are still really high and they are feeling the pinch every time they go grocery shopping. That affects people’s shopping habits. There are also challenges with the supplier community that I feel will continue and this is something we will work to manage. The other is cyber threats. While it’s not an issue specific to the grocery industry, it is something that every responsible business needs to monitor. We’ve done our best to build in as many layers of protection as possible and we continue to work on the issue.

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