Welcome to PLMA’s e-scanner newsletter – News, Insights and Happenings

By Carol Angrisani, Editor and PLMA Content Producer

NEWS ROUNDUP
Retail Store Brand Experts to Speak at Education Program

Chris Skyers, former VP, Own Brands at Wakefern and now EVP, Sales Strategy Services, Grocery Channel Lead, Market Performance Group, is among the retail store brand experts who will speak at PLMA’s annual Executive Education program, June 11-12 at Saint Joseph’s University in Philadelphia.

Registration for PLMA members is now being offered at a special rate of $699 until May 3.

Other instructors include Theo Schweitz, former director of private brand food at Target and now CEO of Drive Wheel Peer Groups; and Brian Gornall, whose experience includes Albertsons as well as being a founding leader who established Amazon’s launch of several private label food and beverage brands.

Among the topics of discussion: “The Changing Retail Landscape,” “In-Store Brand Strategy,” “How Turbulent Times Impact Your Company,” “Product and Packaging Innovation” and much more.

Click here to get more details and register.

Store Brand Sales Grew 1.8% in Q1

Store brands outperformed national brands in both dollar and unit sales in the first quarter of 2024, according to Circana, PLMA's provider of exclusive sales data.

Private label dollar sales were up 1.8%, compared to an increase of 1.2% for national brands. Over the first three months, total U.S. store brand sales were about $60 billion. This is a potential harbinger of another record year, as was the case in 2023, when all-time highs were set in annual sales ($236 billion) as well as dollar share (18.9%) and unit share (20.7%).

The Q1 2024 results in unit sales were even more impressive. Store brands rose by 2.3%, while national brands fell 0.9%. As a result, store brand market share of both dollars and units increased.

Looking at the results in the individual product departments for the first quarter of 2024, the leading gainers in store brand dollar sales were Beauty, up 7.9%; followed by General Food, ahead 5.8%, and Beverages, which rose 3.3%. Pet Care was up 2.9%; Home Care, 2.7%; Frozen, 2.3%; Home, 2.2%, and General Merchandise, 1.5%. Refrigerated slipped 0.6%.

PLMA members get complimentary access to U.S. monthly store brand and national brand sales data on the PLMA/Circana Unify + sales data platform on members.plma.com.

The ‘Phenomenon’ Continues, Nov. 17-19

PLMA's 2024 Annual Private Label Trade Show, November 17-19 in Chicago, is appropriately themed “The Store Brands Phenomenon 2024 - Empowering the Retail Industry.” It’s a reprise of last year’s very successful theme. The event is ranked as a Gold 100 Show and is the largest of its kind. It provides supermarkets, supercenters, drug chains, wholesale clubs, dollar and specialty stores, mass merchandisers, importers and exporters and e-commerce retailers and visitors with an exclusive venue to discover the latest food, beverages, non-food, ingredients, flavors, fragrances, packaging, and supplier trends in the store brand industry.

Click here for more information or email info@plma.com.

Report: Gen Z Pet Store Visits on the Rise

A generational shift in pet shopping is occurring in the U.S., with Gen Z's visits to pet retailers increasing, while Millennials foot traffic is on the decline, according to new data from pass_by, an AI-powered geospatial insights company.

The report noted that over the past five years, Gen Z visits have risen, with Petsmart up by 1.3%, Petco by 1.89%, and Pet Supermarket by 1.65%. In contrast, Millennials have reduced their visits, with Petsmart seeing a 6.26% decrease; Petco, a 6.86% drop; and Pet Supermarket, a 7.63% decline.

The increase in Gen Z traffic suggests a rising trend in pet ownership and care within this demographic. In contrast, the decreased foot traffic among Millennials might indicate shifting priorities or changes in how they choose to engage with the pet industry, said James Ewen, VP, marketing, pass_by.

"As Gen Z comes of age and enters their prime pet-owning years, they're bringing a new level of energy and enthusiasm to the pet retail industry," said Ewen. "While Millennials may be drifting away, savvy retailers who cater to Gen Z's unique preferences and shopping habits could be poised for a new era of growth."

According to the report, retailers should implement the following strategies to engage the Gen Z market:

1. Sustainability and ethical practices: Generational data shows young pet owners demand more than just ecofriendly and BPA-free products. They are drawn to brands that reflect their own dedication to conservation.
2. Digital engagement: Provide robust social media engagement, mobile-friendly online shopping platforms, and a seamless virtual shopping experience.
3. Experiential retail: Ewen recommends bridging the digital divide with tangibility by providing interactive product displays, pet-friendly events and educational workshops.

Ideas and Inspiration

-Trader Joe’s has launched an Instagram pizza recipe contest featuring its store brands. To enter, shoppers need to create and post a pizza recipe that incorporates up to seven Trader Joe’s products. (Salt, sugar, butter, water and oil do not count toward the seven-ingredient maximum.)

The winner will receive a $200 Trader Joe’s gift card and have their recipe featured on the Trader Joe’s website. Two runners-up will be selected to each receive a $100 Trader Joe’s gift card.

The winner will be announced April 29.

- Now that allergy season is here, retailers are promoting over-the-counter products to ease symptoms like itchy, watery eyes and a stuffy, runny nose. Hy-Vee and Giant Eagle, for instance, have advertised TopCare allergy medicine on their websites. The TopCare allergy line includes tablets, liquid and nasal sprays.

- Wegmans has introduced a line of store brand specialty sauces. The new sauces include Hollandaise, Bearnaise and Peppercorn. Each is sold under Wegmans’ “Food You Feel Good About” banner, featured on packaging of products that do not contain artificial colors, flavors or preservatives.

TREND ALERT: Influencer Partnerships

Retailers are partnering with content creators to bring their store brands to life in online recipes.

Stop & Shop, Quincy, Mass., has launched a series of videos with “The Happy Pear,” Irish twins who run a plant-based cooking and lifestyle company. Each video showcases various Stop & Shop private brands used in a plant-based recipe.

For instance, a recipe for Roasted Red Pepper Pasta includes store brand pasta. Other recipes include plant-based mac & cheese and grain-free granola.

Notable Quotable - Mark Fairhurst, Mercatus

“For today’s grocers, keeping your online customers engaged is more important than ever, as growth is now more likely derived from increased order frequency and/or spend per order.”

- Mark Fairhurst, global chief growth officer at Mercatus, on the latest Brick Meets Click/Mercatus Grocery Shopper Survey. The results show that March 2024 U.S. eGrocery sales totaled $8.0 billion, flat versus year ago.

DATA POINTS: Always Save

550

- The number of items in Associated Wholesale Grocers’ Always Save store brand line. This is up from 140 when the brand was launched in 1984. Currently celebrating its 40th Anniversary, the brand can be found throughout the store. Just last year, it entered the health, beauty, and wellness category with an assortment of over-the-counter medications, bubble baths, oral care products, and more.

IN CASE YOU MISSED IT - Brandon Brown of Albertsons

Brandon Brown, SVP, Own Brands at Albertsons Cos., shares an insider perspective on private brand successes and challenges. Pricing, consumer insights, new concepts and manufacturer-retailer relationships are among the areas explored.

Plus, Harry Overly, President & CEO of private label snack manufacturer Flagstone Foods, spoke at a recent PLMA Lunch with Leadership session about snacking trends. Overly says that snack shoppers are more interested in global flavors, like churro-flavored products. Watch full video here.

Another recent Lunch with Leadership guest was Ann O’Hara, president, Huhtamaki North America, who discussed sustainable packaging.

Click here for more information about Lunch with Leadership, or contact PLMA at info@plma.com.
 

PLMA News and Happenings
CEO Interview Series Continues April 25

Camilo Romero, CEO of Luker Chocolate, will appear in the April 25 session of Lunch with Leadership, PLMA’s new online series of lunchtime interviews with leading CEOs.

The series explores how corporate leaders view their organization now and where they believe it fits in the future of American retailing and the store brand supplier community. Joe Mollica II, CEO of LNK International, Inc., will be featured May 2.

Previous guests include Harry Overly, president and CEO of Flagstone Foods; Ann O'Hara, President of Huhtamaki North America; and Lou DeMent, CEO of Giovanni Foods.

Click here for more information, or contact PLMA at info@plma.com.

Wellness Trends to be Revealed May 16

Lunch and LearnShaun Callaghan and Jonathan Medalsy of McKinsey & Co. will discuss McKinsey’s “The Future of Wellness” report during PLMA’s next Lunch and Learn on May 16 at 12:30 p.m. EST. Based on a survey of 5,000 consumers across the U.S., U.K. and China, the report reveals trends defining the $1.8T global wellness market in 2024. It examines consumer preferences and purchase behaviors across health, fitness, nutrition, appearance, mindfulness and sleep. It delves into the shift towards data- and science-backed health solutions and other key trends, and outlines considerations for companies who are active in or looking to enter the health and wellness space. Click here for more information and to register.

PLMA’s World of Private Label International Trade Show, May 28-29

PLMA’s 2024 World of Private Label International Trade Show will be held May 28-29 at the RAI Amsterdam Convention Centre, The Netherlands. The exhibit hall will feature fresh, frozen and refrigerated foods, dry grocery and beverages, as well as non-food categories, including cosmetics, health and beauty, household and kitchen, auto aftercare, garden, housewares and much more. Click here for more info.

Webinars Feature PLMA President Peggy Davies

Join Store Brands and PLMA for a power-packed State of the Industry webinar series. Held on a quarterly basis, the webinars will reveal hidden drivers behind private label's continual rise; the evolving consumer mindset and their growing appreciation for private label's value proposition and more.

PLMA President Peggy Davies spoke at the March 8 webinar and will appear again at the Dec. 6 session at 2 p.m. EST. Other sessions will be held May 3 and July 26, featuring Mary Ellen Lynch, Principal, Circana. Click here to register.

Become a PLMA Member

Did you know PLMA members receive discounted rates to attend November's Private Label Trade Show and PLMA’s Executive Education program?

Members also get access to UNIFY+ monthly sales data covering over 317 food and non-food categories and over 950 subcategories and much more. Becoming a PLMA member is an investment that delivers actionable real-time solutions so that your business thrives today and is prepared for tomorrow’s challenges.

Click here for information, or contact the membership team at memberservices@plma.com.

Events

PLMA's Lunch and Learn, Thursday, May 16 12:30pm ET
Presented by McKinsey & Company