Sales of Sprouts Farmers Market store brand products rose 14% in the third quarter and now account for more than 20% of total revenue, according to the retailer.
Chip Molloy, Sprouts chief financial officer, said during a recent investor conference call to discuss their quarterly results said the retailer will continue to grow its assortment as more sales are coming from its store brands.
“Unlike traditional grocers’ private labels, our Sprouts brand is positioned as better for you, high-quality, and attribute-friendly,” Molloy said. “The value of the Sprouts brand resonates with our core customers, as we continue to receive recognition and rave reviews.”
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. The popularity reflects what consumers are seeking from products. Sprouts also said it focused on the development of new products, especially items that offer better-for-you ingredients.
“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.