Juan De Paoli, Kroger’s Vice President of Own Brands, spoke to attendees at PLMA’s 2023 Annual Meeting & Leadership Conference on March 24. The event was held at the Hyatt Regency Grand Cypress in Orlando.
De Paoli highlighted Kroger’s commitment to its brands and called this “the year of the Kroger brand” as the company launched its first ever national television campaign for its private label products with a commercial that premiered during the NFL playoffs.
He stressed that Kroger focuses on how the quality of its products must be excellent. “The consumer is the center of our strategy,” he said. "Providing high quality items to the customer is critical because quality is what drives them to buy products."
“It's in our DNA to build that quality in our products for our customers,” De Paoli said and stressed this applies to the private label manufacturers who work with Kroger as well. “Without the quality you are not allowed to enter the room.”
When it comes to private label suppliers, he said its doors are open to all and how “Kroger works with all private label suppliers – we welcome all suppliers whether they be large or smaller companies.”
He pointed out how companies with new ideas or products can work with the chain and build a relationship over time.
“We can develop products with suppliers and start with one or two products and from there we can grow together with them,” De Paoli said.
While Kroger has 34 of its own manufacturing plants around the country, De Paoli said they are always seeking new ideas and new products and while relationships with larger companies are strong, size is not exclusive.
He urged private label manufacturers to closely collaborate with retailers and their other partners and continue to fuel the growth of store brands. “We can do it and let’s get it done together,” he said.
Sales of Kroger’s Own Brands topped $30 billion in 2022 and he added 83% of customers consistently shop for Kroger brands and leave the store with at least one Kroger brand in their baskets.