The private brand shopper has changed significantly in the past decade and in 2020 and beyond, being a strong player in private brands may mean the difference in what makes for a successful grocer.
According to FMI’s 2019 The Power of Private Brands report, private brand sales represent 17.9 percent of dollar sales in the grocery channel, a number equalling $75 billion in sales. The AWG Brands team has been aware of these trends for decades and is focused on helping members succeed by creating one of the top private brand programs in the country.
Nothing is more important than the right products. That’s why the AWG Brands team continues to focus on product innovation. Snacking, specialty, seasonal, sweet and savory: AWG Brands product innovation has something for everyone. New items like snack packs with cheese, fruit, and nuts, Snickerdoodle cookie cereal, seasonal ice creams, and chili starters hit member retailers’ shelves in early 2020. Fresh salsas, chip dips with expanded flavors, simmering sauces, and bread and bar mixes are being released in the summer, along with more Clearly product availability and a rebranded Best Choice Superior Selections line.
While product quality and variety can win a consumer’s heart, being right on price wins their wallet. Through elements all along the shopper journey both in-store and out, AWG Brands is bringing to lifepromotion innovation to inspire purchase and drive sales. Super Sales, Opportunity Buys, digital coupons and event deals help retailers compete in the ever-important Value Proposition positioning in a consumer’s mind. Then, expanded digital assets mean member retailers can feature AWG Brands products on their websites and social media platforms along with their traditional circulars and shelf signage.
Product quality and pricing remain the most important factors driving sales, yet according to FMI’s research, packaging innovation is another area where private brands can differentiate themselves in the minds of consumers. Different formats, larger package sizes, and better display-ready presentation are all elements of the innovation happening in AWG Brands packaging in 2020. Innovative packaging includes applesauce pouches, squeezable sour cream, bigger shrimp bag sizes, and standup frozen vegetable pouches.
Now that the right product in the right packaging is offered at the right price, merchandising innovation becomes extremely important. Member retailers can grab the consumer’s attention through innovative AWG Brands merchandising programs. In-store programs include the Hometown End Cap Display program and featured shippers. The team is also looking to influence behavior by intercepting customers on their path to purchase with tactics like the supplemental ad, online shopping catalogs with enhanced product information, and shelf tags highlighting a product’s nutritional attributes.
Private brand customers are savvier than ever before. Through innovation in the four areas outlined above, the AWG Brands team is helping member retailers meet the expectations of these consumers head-on.
To find FMI’s Power of Private Brand report, go to: https://www.fmi.org/forms/store/ProductFormPublic/power-of-private-brands
