Private Label Magazine - November/December 2011

Market News

Loblaw to Create Cooking
Show Winners as Store Brands

Canadian Retailer Loblaw Cos. will create new store brand products based the winning entries of a new reality television cooking competition ‘Recipes to Riches’.

The show premiered on October 19 on the Food Network Canada channel, and sees 21 contestants cooking up recipes, which are voted upon by industry experts as well as home audiences. According to NamNews, the winning recipes from each category–from appetizers and entrees to desserts–will be offered as samples at its outlets across Canada.

Once the winners of all the categories are declared on the show, they will then be turned into ‘President’s Choice’ own label products. The winners of each category will also take home a $25,000 cash prize and viewers will then vote online for the best of the best and one winner will take home the $250,000 grand prize–the largest in Canadian reality TV history.

Loblaw noted that it faced significant challenges, as the home recipes not only had to be commercialized on a mass scale, they also needed to have an appropriate shelf life and be distributed through the supply chain. A tease for the show can be viewed on youtube.com.

Giant Eagle Combo Promotion

Giant Eagle, Pittsburgh, PA, ran a sale in its October circular combining the purchase of national brand products with a free store brand giveaway. When shoppers bought any two Orville Redenbacher’s Gourmet Popping Corn they got one free Giant brand two-liter soda for free. Other giveaways combined Degree Deodorant with CareOne store brand Shave Gel, and Kleenex Hand Towels with CareOne Liquid Hand Soap.

The sale benefits the retailer by growing private brands with three times normal weekly volume. The manufacturer gets a volume lift 2-3 times the normal lift for display and feature promotions.

PL Category Gains Momentum at Cosmoprof North America

The notion of private label was on everyone’s minds and business agendas this year at Cosmoprof North America. The Private Label magazine conference “Emotional Branding – How to Navigate and Attract” had the best overall attendance at the show. This solidified that there is a high demand of knowledge when it comes to this specific category. Business owners really wanted more statistics on how they can maximize profitability by creating a private label brand that consumers will connect with. The speakers in the conference included Marcia Gaynor, GMM Beauty of Duane Reade, Karen Young, CEO of The Young Group and Andy Johnson, creative partner of United DSN. With different perspectives, each contributed on the emotional aspects of branding nowadays, from both the business and consumer’s view. These experts explored all facets of creating a brand and the importance of expressive branding to ensure customer loyalty.

The Packaging, Contract Manufacturing & Private Label Pavilion also had an increase in exhibitors, new and established; such as Lady Burd Cosmetics, Columbia Cosmetics and Grafton Cosmetics. This further demonstrates that this category is gaining huge momentum and attention. Manufactures from around the world can now attend a venue such as CPNA, to find the right products, the right packaging and the right partners. The overall response from exhibitors was that many successful meetings did indeed take place with a high percentage of international visitors from 105 countries, including Canada and Mexico. Cosmoprof North America takes place next year on July 22- 24, 2012.

Safe Cosmetics Alliance Announced

A diverse coalition representing the entire spectrum of the nation’s cosmetic and personal care industry–from nail salon workers to small business owners and direct sellers to global corporations–have come together to champion modernizing the industry’s U.S. product safety laws, according to officials from the newly-formed Safe Cosmetics Alliance.

“Those of us in the personal care products and beauty services industry have an impeccable safety record,” said Pam Busiek, president and CEO for the Independent Cosmetic Manufacturers & Distributors (ICMAD), a member of the new Alliance. “Given all the advances in science and technology, it is essential that our laws keep pace. We want to ensure that we sustain our positive safety record as well as the confidence of our consumers for years to come.”

The coalition supports science-based federal legislation designed to strengthen U.S. Food & Drug Administration (FDA) oversight of the industry, increase transparency and enhance existing consumer safeguards. The industry has been in discussions with Members of Congress to encourage introduction of such a bill.

The Alliance, which today unveiled its new web site (www.SafeCosmeticsAlliance.org), also includes the Professional Beauty Association (PBA), Direct Selling Association (DSA), and the Personal Care Products Council (PCPC).

The Alliance is supporting legislation that would require personal care products manufacturers to register with the FDA and file with the agency reports detailing the ingredients used in their products. The legislation also would require manufacturers to report any unexpected adverse reactions a consumer has with a product. It also would create a process at the FDA for any stakeholder to seek a safety review of any ingredient used in a product.

BI-LO Celebrates 50 Successful Years

BI-LO took a tour this Autumn across North Carolina, South Carolina, Georgia and Tennessee with its Blast From The Past vintage Airstream trailer in celebration of 50 successful years. When the trailer stopped at an area BI-LO location, customers had the opportunity to win one of several prizes during the anniversary celebration. In addition to other prizes, BI-LO gave away 25 reusable shopping bags filled with BI-LO store-brand products, and 100 individuals walked away with a retro T-shirt celebrating of the company’s 50-year heritage.

“BI-LO wanted to do something very special for our customers for whom we have had the privilege of providing savings without sacrificing on quality, service or price these past 50 years,” said BI-LO President and CEO Michael Byars. “We wanted our Blast From The Past tour to be something that everyone in our market could participate in, and we hope that our customers take advantage of the festivities and great prizes we have planned for each tour stop along the way.”

Price Chopper Names DeJulio Director

Price Chopper Supermarkets, Schenectady, NY, named Mike DeJulio director of corporate brands, reporting directly to Angelo Cannistraci, group vice president, center store, pharmacy and senior merchandising coordinator. In his new position, DeJulio is responsible for growing private brand sales for the 128 Price Chopper stores, and will work directly with Daymon Worldwide.

PLMA Study Finds Shoppers Open to Persuasion

For years the retailing industry has debated between those who argue a shopper’s mind is mostly made up before they even enter the store and those who assert the real decision what to buy comes down to a final few seconds at the shelf. In fact it is neither, according to a recent survey of U.S. consumers.

To the longstanding question of how shoppers make decisions, PLMA’s newest study by Buxton consumer research gives up some surprising answers and identifies significant opportunities for store brands.

The nationwide poll of 1,170 shoppers reveals that, contrary what is often claimed, shoppers tend to be engaged fully in a process for purchase decisions that starts with preparing a list of items at home, visiting stores and walking the aisles, then considering a variety options and alternatives to their planned purchases prior to deciding what to buy at the shelves.

“How Shoppers Make Decisions” is the latest in a series of research publications focusing on consumer attitudes and behavior. The report follows shoppers during three distinct parts of the shopping experience: Preparations before going to the store, the shopping trip itself, and the buying decision made at the shelf.

To follow up on the Buxton research and its implications for the private label industry, PLMA will host a special seminar program on Sunday, November 13, in conjunction with the association’s 2011 Private Label Trade Show in Chicago. The session on “How Consumers Make Decisions” will explore the ways that retailers and private label manufacturers can translate the research into new ways of looking at consumer behavior and develop new strategies that benefit store brands.

Safeway Continues to Add Pantry Essentials

Earlier this year Private Label reported that Safeway was beginning to roll out its new Pantry Essentials line, for which Safeway Inc. filed a U.S. federal trademark registration on November 26, 2010. The line is continuing to roll out in both the food and non-food categories and replaces the Value Red line, it’s Value tier Private Brand, which had previously been changed from the original Basic Red.

MarcabyBolognaFiere 2012 in January

The eighth edition of MarcabyBolognaFiere – Private Label Conference and Exhibition, the reference point for the private label sector, will be held in Bologna on January 18-19. Along with the traditional Annual Private Label Report on January 19, the exhibition will offer the ADM (Associazione Distribuzione Moderna) Conference on January 18 to call the attention of professionals and government representatives to the role played by private label products in the creation of wealth for the country thanks to advantages generated for producers and final consumers.

Visit www.bolognafiere.it for more information.