A good supplier-retailer relationship can only be good for own brands

Throughout her presentation during the recent Private Label Manufacturers Association’s annual Meeting & Leadership Conference in Tucson, Ariz., Ahold Delhaize’s Jac Ross stressed the importance of a trusting and amicable supplier-retailer relationship when it comes to developing, introducing and ensuring the success of innovative private brands.

Ross, Ahold Delhaize’s senior director of own brands product development, innovation and integrity, used the retailer’s Limited-Time Originals: Twisted Chocolate line of store brand products as an example. There are more than 30 products in the line, including Twisted Chocolate Cream Soda, Twisted Chocolate Hummus and Twisted Chocolate Brioche, that are offered for only six to eight weeks.

“When they’re gone, they’re gone,” Ross said.

The Twisted Chocolate line is wildly popular among consumers who shop Ahold Delhaize’s Giant Food Stores. The line screams own-brand innovation — loudly.

“The line has been most successful in terms of generating excitement with our customers,” Ross said, noting the products contain chocolate “and a few extra ingredients to give them a twist.”

But the secret to keeping products in the line exciting is to keep them available for only short periods during the year. But Ross realizes that can be difficult for suppliers, starting with short product runs at the food plant.

“That can cause suppliers potential inefficiencies,” she said. “So why on earth would they want to [partner with us on this]?"

Ross’ point is that when retailer-supplier relationships are strong, the supplier is happy to participate in such an agreement, knowing that it will benefit the retailer.

“As manufacturers, if you can support these type of programs, it’s going to provide foot traffic into our stores because we are being innovative,” Ross said.

The payoff for suppliers is a happy customer. That's good business 101.