Kroger plans to launch 80 new products, many of them focused on protein, under its Simple Truth or Private Selection private labels “soon.”
“Earlier this year, we identified protein as a major customer trend, and soon Simple Truth will introduce 80 new products to our assortment,” Ron Sargent, chairman and interim CEO, said in a quarterly presentation June 20 to financial analysts.
“Targeted directly at this important trend, these products are everything from bars and powders to shakes, all from a natural and organic brand that customers trust.”
Most of those would be produced by private labelers or contract manufacturers, although Kroger has been growing its own manufacturing assets.
Earlier in the meeting, Sargent said, “As customers search for value, we are excited by the potential of the ‘our brands’ business. We are growing sales by offering high-quality products to customers at all budget levels. This quarter, our brands grew faster than national brands for the seventh consecutive quarter. Simple Truth and Private Selection led our sales growth, highlighting how customers want premium products while also spending less.”
And later, “People are eating healthier, so we’re going to jump on that trend. I think the high-protein products also tie into customers using GLP-1 medications. The best part about our brands is it differentiates us from our competitors. There’s only one place you can get the Kroger brand or Simple Truth or [Private] Selection.”
Asked by one of the financial analysts if he was seeing any change in strategy from branded food marketers to counter the growth of private label, Sargent said, “Really not. We’re not seeing them be more aggressive on pricing or promotion. It’s a steady state with our CPG partners.”
He later amended that acknowledging “the trend in Washington to eliminate anything artificial, especially in the area of dyes. I think many CPGs are reformulating their products to address that. Certainly we’re all over that with Kroger brands.”
