Kroger: Kroger, Albertsons keep up private brand expansion

NEW YORK - The Kroger Co. and Albertsons Cos., the nation's largest traditional supermarket operators, have expanded their private label rosters with a flurry of new items. Cincinnati-based Kroger this week rolled out five new "our brands" products under its Private Selection, Simple Truth and Kroger labels. The latest offerings under the premium Private Selection brand include muffins in four flavors - banana bread, blueberry lemon, coffee cake and triple chocolate - plus six varieties of salad kits, including cheddar truffle, blueberry, cheddar bacon poblano, sweet onion gruyere, cherry bacon cheddar and Asian sesame ginger. In snacks, the company has introduced a new tortilla chip variety under its namesake store brand, Kroger Kettle Style Cooked Tortilla Chips, available in traditional and Hatch chile flavors. Also making its debut under the label is Kroger Restaurant Style Italian Dressing, made with Italian spices, oil, vinegar and real Romano cheese. Kroger, too, added to its better-for-you selection with the launch of Simple Truth Organic Instant Mushroom Tea, offered in black and chai blends. The grocer said the new tea comes after "rave reviews" for Simple Truth Organic Mushroom Instant Coffee. "Kroger our brands' unmatched flavor and value make them a favorite for many customers," said Mike Murphy, group vice president of center store merchandising at Kroger. "Our product innovation is rooted in a deep understanding of what our customers want and need. We know these exciting, trendy items will soon earn a place on families' dinner tables because they offer great flavors at a price point that fits any budget." Boise-based Albertsons, meanwhile, is marking the arrival of spring with the introduction of more than 20 limited-edition, "lemon-inspired" food and beverage products under the Signature Select, Overjoyed and Soleil labels in its own brands portfolio. New Signature Select offerings include lemon potato chips, lemon black pepper popcorn, lemon pepper cashews, raspberry lemon crispy rice treats and lemon strawberry sparkling water. Two limited-time flavors, lemon lime and prickly pear lemon, join the Soleil sparkling water brand. And the fledgling Overjoyed label - which back in early September represented Albertsons' first major private label launch in years - is being expanded with lemon-flavored wafer rolls and squares, yogurt pretzels, mini cookies, sandwich sugar cookies and madeleines. Other items include strawberry lemonade trail mix, lemon blossom ice cream sandwiches, lemon coated blueberry candy and lemon white chocolate cones. "By investing in our own brands and introducing innovative products, we're adding value and excitement for our customers," said Omer Gajial, executive vice president of merchandising and chief digital officer for Albertsons Cos. "This spring, our new own brands lemon-inspired offerings add variety and novelty to our customers' weekly shopping routines, inspiring them to explore and try new products and create new moments of delight." For Kroger and Albertsons, private brands have grown into significant businesses and become pillars of their strategic growth plans. Executives at both retailers have noted the key roles that store brands play in turning their brick-and-mortar and online stores into shopper destinations and boosting customer loyalty, since favorite private-label offerings can't be purchased elsewhere. Kroger's private label business now spans more than 13,000 items and generates $30 billion in annual sales, with the products made in 35 food production plants operated by the company. During fiscal 2024, Kroger launched more than 900 new private label products, including 370 fresh items. Albertsons' portfolio has expanded into a $16.5 billion business, with more than 14,000 items made at 19 manufacturing facilities. In its most recently reported period, the fiscal 2024 third quarter, the retailer rolled out 82 new private-brand products.