“Sometimes, our customers go to other retailers for certain types of trips, and we looked at why our customers are making those trips, what they were buying and where they were going. What we found out is we were missing out on a certain type of trip called a specialty trip, and this is focused on celebrating and gift-picking,” Brandon Brown, senior VP of Own brands at Albertsons, told FoodNavigator-USA.
Celebrating special to everyday occasions
The Overjoyed brand joins Albertsons’ portfolio of private-label brands with a line of baked goods, trail mixes, candies, cheesecakes, ice-cream cones and baking supplies, including sprinkles, chocolate chips, marshmallows and other ingredients. Overjoyed products have been rolling out to Albertsons stores nationwide over the last several months, Brown said.
“We will have over 150 items in Overjoyed at launch, and about half of those items are actually brand-new items to the store, and half of them are items that were previously in other brands [that] we have transitioned to Overjoyed,” he added.
Additionally, Albertsons is “planning out a full year and a half in advance” for the brand, including seasonal product releases, Brown said.
“We have a full line of fun Halloween time candy — eyeball gumballs [and] sour-spider gummies that are really fun and unique and really clever and cute packaging. Some fall trail mixes like pumpkin spice yogurt pretzels with sprinkles on them as well as cookie decorating kits, build-your-own haunted [cookie] house, and then fall pumpkin cookies and cupcakes. We see Overjoyed also as a way to bring a lot of fun seasonal items throughout the year to our customers,” he elaborated.
‘There were a few holes in the portfolio, where Overjoyed is filling one of those holes’
Overjoyed’s launch is a part of Albertsons’ overall private-label business strategy, which included bringing “a tasteful edge” to the Open Nature brand last year, Brown previously shared. Additionally, Albertsons is using social media to build brand awareness and recognition of its private-label brands, through dedicated brand accounts.
“The first part [of the strategy] was making sure that our brands were really clear on targeting which certain customer segments that we were going after. ... And then, there were a few holes in the portfolio, where Overjoyed is filling one of those holes,” Brown said.
Albertsons is not the only major retailer capturing consumers’ attention with new private label offerings or rebranded product lines.
In April, Albertsons' rival Walmart launched what it called its "largest private brand food launch in 20 years" with the release of Bettergoods, which included a range of sauces, seasonings, yogurts and plant-based products, Walmart shared in a press release. Shortly after, CVS launched its functional private-label brand, Well Market, which included popcorn, nuts, oatmeal and gluten-free pita chips and cookies.
‘The private label sector has never been stronger’
The demand for private-label products surged following the COVID-19 pandemic, as consumers stretched their dollars to combat high food inflation.
In a survey of 400 consumers, Kroger's 84.51° found that most consumers (84%) were loyal to a brand that provided a good value — not necessarily the cheapest — and 60% said they chose a retailer based on its prices.
“Even though inflation is coming down, customers continue to seek out value. Private label is a great way to have the same — or better — quality than the national brand items they are used to buying but at a better value. The value equation that private label offers is continuing to drive customers to try private label and stick with private label,” Brown said.
Private-label brands reached $121 billion in sales for the first six months of the year, according to Circana data supplied to the Private Label Manufacturers Association (PLMA). Additionally, private-label brands represented 22.9% of the unit market share, and 20.4% of the dollar market share, PLMA added.
Additionally, private-label brands outpaced national brands in both units and dollar growth during the first half of 2024. Private label grew 2.3% in dollar sales and 2.5% in unit sales for the first six months of 2024, compared to national brands that saw 1.1% in dollar sales and 0.8% in unit growth during the same period, according to Circana data.
As private-label gains market share, Albertsons is ensuring its stores have the right mix of private, national and emerging brands to meet consumer demands, Brown noted.
“At the end of the day, ... we want to meet the needs of our customers. So as our customers are still desiring the national brands that they trusted for years and loved, we will continue offering those products as well. As there is demand for private label and different categories, we will continue to innovate and provide those options as well,” Brown said.
Younger consumers ‘just want a great product’
Younger consumers are more willing to try private label brands and do not have the same sense of brand loyalty as older generations, Brown noted.
“As you see Millennial and Gen Z consumers having greater purchasing power, brands are less important to them. ... They do not care about if it is a national brand on the label. They just want a great product. … They are willing to try new brands, which includes private label,” Brown said.
