- NEW FEATURE
Asterisks before a *Company Name indicates that company's current listing is in the 2010 Exclusive Brands SOURCEBOOK database.
There are people partial to the word “super,” as a marketing come-on: Super Savings, Super Deals, and Super Size are examples. The term ‘super’ also has appeared on some *Wegmans brand products, such as fresh rolls, frozen steamed-sweet corn, and premium vanilla ice cream. Wegmans' latest 'super' product is a whole grain, light-brown colored product, called Super Pasta, sold under the Wegmans Food You Feel Good About brand. Starting on this Labor Day weekend (September 2010), the new product will appear in Wegmans stores. All the informaton about this product comes only from Wegmans’ website, its official press release about the product, and a few tertiary news sources (echoing the press release). We're told that Super Pasta “offers more nutritional extras than perhaps any other brand on the market.” The impression, so far from its company description, is that this product indeed sounds better than comparable products and could very well deliver “a lovable taste,” just as tasty as refined or processed white pasta, along with “more goodness in every bite,” according to the Wegmans’ spin. But we truly cannot appraise its value ($1.99 per package), especially since Wegmans, we’ve been told, “does not do trade press interviews.” The chances for getting any other information about this product, for us as the 'trade press,' are nil. Also, at this writing, since the product is not yet on the Wegmans store shelves near us, we must wait until we can drive more than an hour to the nearest Wegmans store for a taste test.
That said, before reporting on exactly how Wegmans describes this new "Super Pasta," it may be instructive to widen our perspective, by quoting a young scientist and San Francisco ‘foodie,’ Darya Pino, who commented on her January 2010 website, summertomato.com (upgrade your health style):
“I health-heartedly support the regular consumption of whole grains. But I also hold that there is a huge difference between intact grains and processed whole grains. So yes, brown rice is better for you than white rice, but pasta is different.
“Noodles are made of dough and are therefore processed no matter what. For this reason they will never be a pinnacle of health food, but that does not mean that there can’t be a place for them in your diet. Italians eat pasta almost every day, and most of them are healthier than us. The important thing to think about when you are eating pasta–any pasta–is quantity.
“So to answer the question: Is whole grain pasta better than regular pasta? Maybe a little. But because I do not eat pasta very often, and because when I do eat pasta I eat a normal (aka small) portion, I always buy what I think will taste the best with a meal. And for me, that is usually handmade fresh pasta (the soft refrigerated kind), not the whole grain stuff.
“If you do not mind the taste of whole grain pasta, go ahead and buy it. It might be slightly better for you than the other kind. But the impact of whole grain pasta on your overall health is really small.”
Ms. Pino, of course, is not a customer of East Coast-based Wegmans; but she does represent some consumer thinking about the health value of any processed food—even one chockful of extra protein, fiber, and other vitamins and minerals.
If we refer to online bloggers (actually, Wegmans’ customers), we find some interesting comments about another Wegmans "super" branded product: Organic Super Yogurt. When in mid-2008, Wegmans introduced this pre- and probiotic blended low-fat yogurt, one customer posted this comment: “I don’t exactly know why it’s super, it didn’t come with a cape and I don’t feel like I’m super after eating it. It’s not that it’s bad… it’s got quite a different taste from StonyField Organic Vanilla…But as I’m putting it back into the fridge, I look at the top and it’s got 1.9 BILLION good bacteria in it. 1.9 BILLION. With a B. Holy (expletive), if that doesn’t get my stomach to calm back down, I don’t know what will. Billion. Maybe that’s why it’s super…”
Another customer, at that time, commented online: “I bought some of that ‘super’ yogurt. Took a big mouthful and spat it out. It was gross. I looked at the ingredients – there should only be two ingredients, milk and the bugs. But, instead there was: sugar (ick), cornstarch, some weird fibre stuff called inulin, fish oil!!! and kosher gelatin made out of beef and tilapia!! And some vitamin D. And then some bacteria.”
What customers say about new so-called healthier products--no matter how subjective--is important. You always learn by listening to your customers. If some products do not measure up 100% to their “super” descriptor, especially products that do not deliver on an outstanding taste, you, too, might ask: Super--What's Dat?
Wegmans Super Pasta very likely delivers on what the company describes as a “lovable taste.” plus a number of benefits: "one whole grain serving (provided by a 2/3 cup portion) toward your goal of 3 per day," some resistant starch (a corn-based fiber), and important nutrients, such as calcium, Vitamn D, and 260 mg of ALA Omega 3 (an essential fatty acid), as well as delivering 10 grams of protein per serving. After some dozen different formulations, and the thorough scrutiny from Wegmans product development team, which includes a brainstorming session, this retailer has come up with a product that “looks and tastes like the comfort food nearly everyone loves.”
Advertised as lactose-free, high in fiber, and "heart healthy," Wegmans Super Pasta, available in five varieties (spaghetti, thin spaghetti, penne rigate, spirals, and elbows), will be promoted this fall with prominent in-store displays, sampling, and culinary demos; plus the "Wegmans Menu" magazine will feature the product in its fall issue along with coupon offers. As pasta-lovers, we can hardly wait to taste it--as well as monitor customer responses on the Internet.
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-- WATCH OUT, 'GEORGE'--
FLORENCE & FRED ARE NOW COMING FROM SOMEWHERE!
We could't resist punning about *Tesco's latest addition of recycled fashion clothes into its successful F&F clothing line. This calls for collaboration with a pioneer in ethical clothing, From Somewhere, London, who has produced creative, sustainable fashionwear since 1997. According to a report (March 2010) by guardian.co.uk, Tesco, visiting a recent ethical fashion show, was impressed by the From Somewear display, and attracted enough to begin working with that company to introduce recycled clothing items into its F&F clothing range. So far, there are six pieces available, each made from end-of-the line stock, which ordinarily would end up in landfill. The fashion articles are produce in one of the world's most environmentally 'green' plants. located in Shri Lanka.
Tesco's clothing line, which was introduced in 2001 into its UK stores under the Florence & Fred brand, for 2009, generated some £ 540 million ($848 million) in sales in the UK alone. The previous year (2008), Tesco had launched F&F into its Central European stores and, during 2009, extended the F&F range into its market in Asia as well, thus making this brand more global: 10 countries total. Last October 2009, the retailer launched a new webside, www.clothingattesco.com, which promotes the total F&F label, its licensed Cherokee clothing brand as well as other brands.
Tesco is on record saying that its wants F&F within five year to become the world's largest fashion brand. The retailer also in March 2009 extended the F&F line into a premium collection, called F&F Couture--the first by a supermarket fashion line. The F&F range already covers basic clothing, petite, plus sizes, etc. for women, men, and children. The range also now extends into fashion accessories. Tesco reportedly plans in October 2010 to open its first ever stand-alone F&F clothing brand outlet in Prague, The Czech Republic. Reports also indicate that Tesco is shopping in London's high street for an F&F store site.
You can be sure that UK competitor ASDA, owned *Wal-Mart, is tracking these developements closely. ASDA has built its 20-year-old George clothing range (extended also into housewares, jewelry, shoes, etc.) into a global brand (7+ countries) with sales estimated at more than $4 billion from 3,000+ stores. (ASDA tested stand-alone George stores, but closed its 11 outlets in 2008.) F&F, in just under 10 years since its launch, already has easily surpassed the $1 billion sales level.
Since this is all about the fashion world, we believe that it behooves these 'food retailers' creatively to enliven their sales pitch online. A video clip of a fashion show with lively music or static images of the different lines goes just so far. Tesco should study the introductory clip on www.fromsomewhere.co.uk showing dancing figures, dressed in the From Somewhere clothes, really rocking--so much so that they morp into kaleidoscopic images. Excitement, emotion, that's part of the sell! Interactive activity and touches of virtual reality also could play a role. This video clip is worth watching and maybe for Tesco's F&F marketing people to start creatively copying.
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IT'S UP, UP & AWAY FOR PRIVATE LABELS!
The latest news reports about the debut of brand new store brands (i.e., *A&P/Pathmark’s Food Basics, *Family Dollar’s Kidgets infant wear, UK-based *Morrison Supermarkets’ Wholefood, etc.) plus the trend for retailers to extend their private brands into more national or global brands, such as Tesco’s strategy with its F&F clothing line (see above) or:
*A.S. Watson of Hong Kong introducing Superdrug’s successful Optimum beauty brand in the United Kingdom into all the Watson Your Personal Store chain mostly in Asian countries (a chain that looks to exceed 10,000 stores by 2011), or
*Walgreen adopting the DeLish brand (starting with a few food skus and expanding the selection in the fall) from its recently acquired Duane Reade chain in metro New York City and now earmarked that brand for placement in all the 6,000+ Walgreen stores nationwide
--all of this reinforces the idea that private labels sales continue to grow upward. Also, the latest market research data, especially about consumer attitudes (see below), points to continued growth for store brands.
Before mentioning two recent studies, we would like to quote Rodney McMullen, president & CEO of *Kroger from this retailer’s latest financial presentation: “We have millions of loyal households who shop with us everyday. Only 5,000 of those households did not purchase a corporate brand item from us.” Actually, Kroger shoppers cannot avoid Kroger’s corporate brand selection of some 20,000 skus, averaging about 11,000 skus per store.
It’s a sign of the times: Private labels are recognized in stores and accepted by consumers. *The Nielsen Co's 2010 global online survey shows that an average of 60% of consumers across 55 countries indicate they are buying more store brands during the economic downturn: Latin America (66% say 'yes'), Asia Pacific (60%), North America (60%), Europe (58%), Middle East/Africa/Pakistan (51%). Some countries exceeded those figures: Colombia (80%), Spain (79%), Portugal (74%), and Greece (70%). However, four countries showed that consumers did not buy more store brands during the recession: Sweden (70%), Thailand (62%), Hong Kong (60%), and Denmark (59%). Nielsen also found that 88% of shoppers globally intend to keep on buying private label, after the economy improves. Notably, three countries, Austria, Germany, and Sweden, each showed consumers with better than 95% intent to continue purchasing private label.
There’s no question that private label sales will continue to grow, despite the cautious optimism of an economic recovery in sight. For example, in Nielsen’s blog, Nielsenwire (Aug. 13), authored by Todd Hale, senior VP of Consumer & Shopper Insights, and James Russo, VP of Global Industry Insights, we read: “In the latest year, Nielsen reports impressive double-digit dollar growth for the fastest growing 15 store brand categories versus single-digit growth for 14 of the fastest growing branded categories. In fact, from 2007 through 2009 and year-to-date 2010, store brand dollar share grew across all categories tracked by Nielsen. Store brands are now growing share from leading brands as well as smaller brands.”
Upbeat news about the potential for continued private label sales gains also come from the *Private Label Manufactuers Association (PLMA). In its series of studies, “Store Brands & The Economy,” an exclusive survey of shopping attitudes conducted by GfK Custom Research North America, the first report, issued in February 2009, found one-third of shoppers willing to buy more store brands as the recession deepened. The fourth report, issued this month (August 2010), found 76% of consumers say they will continue to buy more store brands when the economy returns to normal. Additionally, many of these consumers are now buying store brands in categories where national brand loyalty dominated. The study finds that almost 80% of respondents, who have made the switch to store brands, plan to continue buying them “when the economy returns to normal.”
A growing private brand presence in the marketplace and a nearly 100% endorsement by consumers of these products, this is all about perceived product value for private label. As the Nielsen bloggers (mentioned above) aptly put it: “For many consumers, their own personal recession goes on as they continue to look for value.”
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