Kroger invests in lucrative private label brand

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Kroger invests in lucrative private label brand

By Gina Acosta - 01/03/2018

Kroger is rolling out its largest-ever private label sales promotion and expanding one of its most popular own brands.

Kroger introduced Simple Truth in its fourth quarter 2012, and the brand now offers over 1,400 unique products across multiple categories, including grocery, meat, produce, deli, bakery, baby, household essentials and personal care. Simple Truth also offers more Fair Trade Certified products than any other private label grocery brand in the country.

"We're proud of the high-quality ingredients that go into our Simple Truth products. We're equally proud of what's not in these foods. Simple Truth products are free from 101+ artificial preservatives and ingredients," said Robert Clark, Kroger's senior vice president of merchandising. "Instead of GMOs and antibiotics, Simple Truth® offers clean labels and fantastic flavors. Kroger has led the way for more than a decade in making natural and organic products more mainstream and accessible. We've always believed that our customers shouldn't have to pay higher prices just because a product is natural or organic. The truth is, we've always been affordable."

Kroger says it plans to introduce new private label items in 2018 that align with customer trends, including increasingly popular categories like beverage, snacking and non-animal proteins. These growing trends have already inspired the retailer's innovation team to develop new items like Simple Truth Organic sports drinks, Simple Truth Organic sparkling coconut waters, Simple Truth fruit and nut bars and Simple Truth meatless entrees.

In Kroger's third quarter 2017, Our Brands delivered strong performance, making up 28.2 percent of unit sales and 25.6 percent of sales dollars, excluding fuel and pharmacy. Simple Truth continued to grow in popularity the same quarter, with sales growing 19 percent.

"Our Brands is shaping the way we are redefining the grocery customer experience as outlined in our Restock Kroger plan," Clark added.

Simple Truth products are exclusive to the Kroger Family of Stores and customers can purchase the brand in a variety of ways: in a store; through ClickList; or Vitacost.com for ship-to-home delivery.