Kroger's Private Label Development Efforts Roll On
Following 2024 when Kroger launched more than 900 Our Brand products, the grocer’s private label product development efforts are moving full steam ahead, according to the company’s Interim Chief Financial Officer Todd Foley.
During Kroger’s recent investor conference call to discuss fourth quarter and full-year results, Foley said the grocer’s continued focus on new product development across its roster of own brands continues in 2025.
“This (past) year was not an unusual year for innovation and new items in Our Brands,” he said. “I would expect to see us continue to innovate in that space. When you talk about how much newness comes from opening pricepoint or private selection or those kind of things, our team does and continues to do deep dives in each category, because each category is a little bit different.”
Foley did not offer a specific figure on how many new private label products will hit the shelves at Kroger store this year. He did say the company is doing deep dives on a category-by-category basis to understand where the grocer needs something new at an opening pricepoint and where additions can be made to its higher-end Private Selection brand.
“We need to make sure we understand where we stack up against national brands and where there is sustainability or replacability relative to national brands where Our Brands might be able to be featured,” he said. “We’re probably one-third to 40% of the way through those category deep dives. I expect those to extend through 2025 and beyond to be able to drive that growth.”
Foley said Kroger’s ongoing effort to expand its private label assortment is driven in part by a desire to create destination items that can only be found at Kroger. This, he said, allows the grocer to differentiate itself from competitors and national brands.
That uniqueness can be seen recent bundles of private brand products offered as part of limited time offers seen during the first quarter. In January, Kroger launched its Simple Truth Rescue Bundles, targeting consumers who were starting 2025 with resolutions to eat healthier.
The six bundles included Mocktails, Meatless Meals, Protein-Packed Breakfast solutions, Savory Snacks, Sweet Treats, and Get Your Veggies.
In February, Kroger launched its Hour Back Boxes that included products the grocer said would help shoppers navigate the challenges of springing their clocks forward for Daylight Saving Time. Each limited-edition box was stocked with Our Brands breakfast essentials, including Private Selection Cold Brew Coffee Concentrate, Simple Truth Oatmilk Creamer, and Kroger Frozen Breakfast Sandwiches.
