Sprouts Farmers Market Private Brand Sales Continue To Grow

The popularity of private label products with shoppers at Sprouts Farmers Market continues to grow as the grocer reported a 14% jump in sales across its Sprouts Brand assortment in the third quarter.

With private brands now accounting for more than 1 in every 5 dollars spent at Sprouts, the company continues to grow its assortment, Chip Molloy, Sprouts chief financial officer said during a recent investor conference call to discuss quarterly results.

“Unlike traditional grocers’ private labels, our Sprouts brand is positioned as better for you, high-quality, and attribute-friendly,” he said. “The value of the Sprouts brand resonates with our core customers, as we continue to receive recognition and rave reviews.”

For example, Molloy noted the Sprouts brand organic vanilla creamer went viral on social media during the third quarter for containing only four ingredients, all of which are considered clean. This, he said, is not common in the creamer space.

Additionally, the grocer is focused on the continued development of new products with a focus on items that offer better-for-you ingredients. Recently, Sprouts raised the curtain on its private label holiday items. The assortment includes, among others, holiday bark, white chocolate and peppermint popcorn, hibiscus cranberry herb tea, hot tea bombs, and classic holiday sugar cookies. 

“We continue to focus on innovation and differentiation with a strong bias toward our differentiated Sprouts brand portfolio, which sets us apart from other food retailers,” said Jack Sinclar, Sprouts CEO.

He added the grocer continues to expand in categories such as frozen, and its revitalized in-store sampling has helped shoppers rediscover existing items while also discovering new items being added. 

“Our merchants are rising to the challenge of bringing these products to life in the store and online,” Sinclair said. “New category management capabilities have helped us analyze more trends and insight data to understand customers' shopping habits and desires. Our teams are planning earlier and aligning the organization even stronger behind key themes and seasons like Back to School, which was up high single digits this year.”