In a PLMA Live interview Nancy Cota, Vice President Product Management, Own Brands discussed Albertsons Private Label business with the PLMA’s Tim Simmons.
Key points from this interview are as follows:
Albertsons has 5 national Private Label brands with an additional 10 brands specific to various categories. The individual products can reflect regional differences in their formulations for example Clam chowder or BBQ sauce. (ED NOTE – In a follow up with Nancy this has been updated to over 20 Private brands, 12 that are across the store, others are category specific.)
Most advertising and promotions are implemented on a divisional basis with strong corporate support. They are supporting their Private Label brands on a national basis. An example of Private Label support was their Signature brand campaign.
Two years ago Albertsons created a Culinary Center where they centralized their product development efforts.
Role of Albertsons Private Label program –
1) Build Loyalty,
2) Offer Value,
3) Provide High Quality,
4) Create Destination Products.
Big changes in Private Label at supermarkets
1) Private Label in Fresh departments,
2) Quality of products.
Observations on retailer & manufacture partnership –
1) Consolidation among both
2) Need to be more strategic in partnerships
3) Better commitments at Retailer to encourage investment at Manufactures side,
4) More transparency on supplier cost
5) Need to create better trust among both parties.
Suggestions for Private Label manufacturers who want to do business with Albertsons.
1) Need to be GFSI certified,
2) understand your shopper and Albertsons
ED NOTE- In a follow up exchange Nancy expanded this advice to potential suppliers
1) Be FSI Certified
2) We have a centralized Strategic Sourcing Group they should work with rather than division by division
3) Be willing to share shopper insights with us they have as experts in their categories so it is a win-win
4) Recognize our national footprint, have solutions on supply chain
5) Need to offer lower costs than National Brands and be willing to partner with us to support new item launches to get trial.
Full interview here http://c0000626.cdn2.cloudfiles.rackspacecloud.com/plmalive_01_17.mp4
Background on Albertsons
Albertsons operates 2,311 stores in 35 states and the District of Columbia under 19 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs. They also operate 29 strategically located distribution centers and 18 manufacturing facilities.
Albertsons Private Label brands include: O Organics,Open Nature, Signature (Select, Farms, Care, Cafe, Home), Refeshe, Snack Artist, Lucerne, Primo Taglio, Value Corner, Waterfront Bistro, debi lilly design