Private label manufacturers, the ‘co packers’ that like glutenfree foods and leading edge dietary supplement formulations depending on the latest science. Lady Michelle Obama raised awareness of the initiative when she threw her support behind Walmart as part of her campaign against childhood obesity. Let me ask you something. Should you be worried that Walmart will capture more natural products market share?
Walmart sells about 25percentage of the nation’s food.
The company sent shock waves through the natural products industry in January when it announced a major fiveyear plan to convert thousands of its private label food items to healthier recipes.
A second part of the plan lowers costs on fresh fruits and vegetables, that will make healthy foods more affordable for shoppers on tight budgets. Less salt, transfats and sugars. Notice that on another label, the warning that asthma corticosteroid drugs may deplete vitamin D, calcium, magnesium and vitamin How useful, On a bottle of multivitamins was the report that heartburn drugs similar to Nexium and Prevacid can deplete iron, folic acid, calcium, chromium and vitamin BAnd on a vitamin B12 label was the warning that diabetes drug metformin may reduce B12 absorption. On p of that, Reading vitamin labels the other day, I was impressed to see on a bottle of CoQ10 the information that statin drugs Lipitor and Zocor may lower CoQ10 levels in the body.
Nature Made, on the shelves at Walgreens drugstore. What was this highly educational brand? Our customers got tired of the ground up Birkenstock taste of some amount of these healthy ingredients.
In response to this demand, those ingredients began to creep into more of the products on our shelves.
It was not unusual in the 1970s to see natural foods retailers grinding their own wheat berries in the back of the store on a stone mill. Needless to say, our industry grew. We got tired of all the work. Actually, And, we all craved our chocolate, sugar and unbleached almost white flour. Eventually, Major conventional supermarket chains are also taking notice. In January, Safeway, the Pleasanton, CAbased ‘1700 store’ chain, that controls an estimated 5percentage market share of tal foodstore sales, announced its Open Nature line of 100 natural foods. Open Nature adds to Safeway’s O Organics and Eating Right house brands, that already deliver an estimated $ 500 million in annual sales. Exhibit an is Austin, TXbased Whole Foods Markets. Exhibit B is Trader Joe’s, the Monrovia, CAbased natural/gourmetonthecheap retailer, that racks up 85 of its sales from its private label, or about $ 7 billion.
The company’s 365 Everyday Value Products and similar private label items account for 2200 stockkeepingunits and 19percent of tal grocery and whole body sales, or pushing $ 2 billion.
Savvy mass marketers will continue to squeeze shopping trips away from independents as they add more timely, relevant, state of the art supplement formulas, while independent natural products retailers may still be able to claim superior quality in planning to convince new shoppers you have better quality if they don’t set foot in your store above all? With that said, Even marking up wholesale to retail, that’s still less than 3 of the tal retail food dollar.
Add another couple of percentage points for direct vitamins and supplements not sold through distributors, and maybe another percentage point for small local and regional distributors, and natural/organic still clocks in at less than 7percent of all retail food store sales.
Today, the giant is awake.
In order to survive, you’ll need to do more than just set products on your shelves and hope customers come in. Independent natural retailers may have enjoyed an exclusive health halo for their products while the conventional food industry slept. Tribulus Testosterone Booster In Women Natural Testosterone Supplement Reviews Honest USPlabs Pink Magic Reviews -SupplementReviews.com -Pink Magic is a Natural Testosterone Booster manufactured by USPlabs. That is interesting. For all our lives we eat a diet that imposes an acid load on our kidneys, our bones, and elsewhere. Lots of info can be found easily on the web. The line will expand to include categories just like bread, yogurt, ice cream, salad dressing and frozen foods, among others.
Safeway has positioned Open Nature to address nutrition and dietary needs at very affordable costs with products that are as close to nature as possible. With meat and poultry products from animals fed a ‘allnatural’ vegetarian diet without antibiotics, ‘all natural’ beef. Chicken. Bacon and beef hot dogs, hormones or artificial preservatives, Open Nature will feature fresh proteins. Most mainstream households are not aware of, not emotionally attached to, the relatively new natural brands we’ve come to know and love over the last 40 years. What this means is that hundreds of our dedicated natural brands that is, not Frito Lay, Dannon or Starbucks, as an example are making an attempt to eat better doesn’t know and isn’t interested in niche brands she has never heard of, and should sooner pick up a bag of Baked!
Lays potato chips.
At Retail Insights, we estimate that the reformulations to betterforyou ingredients across all these brands will account for well over half of all foodstore sales within the next 10 to 15 years.
Cleaning up its own brands, Walmart has said it will encourage its major suppliers similar to Kraft Foods, Pepsi, ‘Coca Cola’, Unilever, Nestle, and Procter and Gamble to follow suit. Essentially, the pressure from Walmart will accelerate this trend, even when these companies were already reformulating ward healthier ingredients. You can find more information about it here. Which products will you be able to say make your store truly different? Every small, medium and large supermarket in the country, ‘bigbox’ mass merchants like Target, discount club stores like Costco, dollar stores, and don’t forget drug stores, will carry these more natural items. Furthermore, And, I am not standing in judgment of diluting the ingredient standard for the industry.