Sprouts Farmers Market Continues Driving Own Brand Growth
Following 2024 when Sprouts Farmers Market debuted more than 300 new products sold under its proprietary Sprouts Brand, the grocer is positioned for additional private label growth this year with new products in the pipeline.
During the company’s recent investor conference call to discuss fourth-quarter and full-year results, company CEO Jack Sinclair said product innovation this year will focus on where the grocer has been winning, specifically pointing to attribute-driven products that are unique in the marketplace.
“Our Sprouts Brand is thriving, delivering growth and outpacing company performance while providing customers with products they trust,” he said. “The two-year Sprouts rebranding initiative focusing on vibrant and clear messaging on our packaging is yielding positive results and will foster further growth.”
Sinclair said the company’s foraging team continues sourcing “the best innovation” in its space inclusive of organics, clean ingredients, and minimally processed and pasture-raised proteins.
Additionally, the Phoenix, Ariz.-based retailer is planning to introduce a variety of Sprouts Brand products such as organic avocado tortilla chips, konjac noodles, organic reduced sugar preserves, and organic acai chunks.
“This year we will market these exceptional products more effectively by emphasizing storytelling to highlight their uniqueness and attributes,” he said “The dedication of our team has led to an impressive product development pipeline planned for the next three years filled with new items tailored for those target customers.”
Sprouts’ merchandising team will also continue to collaborate with store teams to bring cross-functional events to life such as its Sprouts Brand event, which highlights the grocer’s selection of private label products.
The effort by Sprouts to continue expanding its own brand product assortment while enhancing marketing efforts around its brand is yielding positive results. Curtis Valentine, Sprouts’ chief financial officer, said during the conference call that products sold under the Sprouts Brand contributed 23% to total company sales in the fourth quarter. This percentage has consistently risen over the past several quarters.
The continued growth of the Sprouts Brand played a key role in the company’s strong fourth-quarter results. For the quarter ended December 29, total sales were $2 billion, an increase of 18% over the comparable quarter the previous year. Comparable sales in the quarter were up 11.5%.
For the full year, net sales were $7.7 billion, up 13% over the previous fiscal year. Annual comparable store sales were up 7.6%
Other notable initiatives on the docket in 2025 include the chain-wide launch of Sprouts' new loyalty program. Currently in a test phase, the grocer is aiming for the third quarter for a phased rollout across all regions, which will continue through the end of the year.
“In our test markets, we’ve been focusing on sign-ups and scans as a key metric of customer engagement and both have met and exceeded our expectations,” Sinclair said.
The grocer will also follow its 33 new store openings in 2024 with at least 35 new stores in 2025. Sinclair said this year’s new store openings will be located in its existing markets and create density in its existing footprint.
“We will also set the table for future expansion into new regions as we build our market plans for the Midwest and the Northeast,” he said. “We are confident in our journey to provide access to Sprouts in as many communities as possible.”
