Pandemic propels own brand wellness category
Like many other private label categories, wellness has seen an explosion in popularity during the pandemic, according to speakers at the Store Brands Industry Forum on Nonfood Innovation.
Andrea Collaro, senior director of health and wellness for owned brands at Walgreens, Dana Ponczek, senior product development manager at Walmart, and Christine Arden, CEO of Confitex discussed the growing category at the Jan. 19 event.
The event, hosted by former Store Brands executive editor Dan Ochwat, featured speakers from across the private brand space to discuss nonfood innovation in categories such as pet, sanitization, home goods and wellness, along with an e-commerce segment to begin the event.
The full forum can be viewed on-demand here.
“There is an opportunity for trusted brands like Walgreens to make an impact with consumers by offering reliable and accessible health,” said Collaro. “We’ve seen an influx of people who weren’t digitally savvy learn how to shop online during the pandemic, so we’ve seen a big increase in our online sales for example. It’s about having that accessible help wherever the consumer wants to get it. Having our own brands front and center helps establish loyalty.”
The pandemic has led to a new-found focus on health, primarily in the consumable category, with customers seeking new and improved ways to maintain good health. This has led to an expanded opportunity for private label brands.
“Consumers have an expectation that retailers will deliver the items that they need. In this pandemic world, private brands have stepped up to the plate to deliver,” said Ponczek. “We’ve shown a constant ability to be there, and it’s that type of dependability that’s critical to gain acceptance, especially in categories where some have been skeptical to shift from a national brand purchase to a private brand purchase. Now more than ever, our food, consumables and health and wellness are really at the forefront of delivering items our customers need.”
With growing demand, however, comes increased supplier challenges, like many other categories have faced since the pandemic began.
“For the suppliers themselves, the challenge has been being able to get raw materials,” said Arden. “In our industry, there’s a shortage of cotton. So you are always doing scenario planning and risk management, and figuring out how you can be flexible. Having a flexible mindset is key, and it’s basically the new normal if you’re a supplier."