Private brand functional beverages experiencing modest growth

An article posted Jan. 3 on BevNet.com noted that “private label functional and better-for-you drinks are making modest gains, with the potential for even stronger growth in the future,” citing data from Chicago-based market research firm IRI’s November 2016 report “Private Label: The Journey to Growth Along Roads Less Traveled.”

Susan Viamari, IRI’s vice president of thought leadership, told BevNet that by creating own-brand functional and healthful beverages, retailers can establish more specialized niches and move away from “me too” innovation.

“The more macro-level development [of private label products] is not as exciting as it has been,” Viamari said. “Now it’s about looking at things with a much more granular lens. … Healthier, on-the-go, energy enhancing — all of those kinds of trends are very ripe for beverage private label development.”

The article points out that conventional grocery retailers are beginning to expand their store brand beverage offerings with health-oriented products. Cincinnati-based The Kroger Co., for one, has rolled out four fruit-flavored varieties of kombucha in its own Simple Truth line, as well as electrolyte-enhanced bottled water. Pleasanton, Calif.-based Safeway has offered kombucha in its O Organics line since 2015.

For more information, read the article at https://www.bevnet.com/news/2017/private-label-functional-beverages-taking-root-grocery.