Welcome to Velocity this week, where we delve into the latest news and insights in the world of retailer-owned brands. In this thought-provoking article, we will explore the most significant themes discussed in our recent transcript, providing an in-depth analysis of their implications and potential impact. From disruptive platforms to consumer shifts and innovative product development, we will uncover the exciting developments shaping the industry. So, let’s dive in!
Disrupting the CPG Supply Chain with Keychain
Last week, Keychain, a manufacturing platform for the packaged goods industry, announced its successful seed funding round, raising $18 million. Led by Lightspeed Venture Partners, this funding will enable Keychain to bring clarity and convenience to the deeply fragmented CPG supply chain. With a network of over 10,000 manufacturers, Keychain’s proprietary AIPower technology helps brands and private labels find the perfect manufacturing partners quickly.
“Brands and retailers want to create great products, but finding the right manufacturing partners within the chaos of the current system often gets in the way,” says Oisin Hanrahan Hanrahan, Keychain co-founder and CEO. By disrupting the industry, Keychain aims to navigate the entire manufacturing process, from competitive intelligence and sourcing to negotiation, onboarding, and compliance.
The potential to change the way we do business is enormous, as Keychain takes on trade shows, existing software platforms, and global sourcing platforms. While the outcome remains uncertain, the opportunity to revolutionize the industry is undeniable.
Albertson Safeway’s Premium Retailer-Owned Brand Pizzas
Albertson Safeway has recently introduced a new range of signature reserve brand wood-fired Neapolitan-style pizzas from Italy. Crafted in the historic village of Meduno, these pizzas are made with quality ingredients and techniques, including 24-hour pizza dough leavening baked on a lava stone from Sicily’s Mount Aetna. Each pizza boasts a Neapolitan-style crisp and airy crust, perfectly complementing the restaurant-style toppings.
The four different pizzas, including caprese, mushroom and truffle, Sopressata, and Gorgonzola and bacon with pear chutney, showcase the retailer’s commitment to innovation and upscaling their Signature Reserve brand. This move highlights the growing trend of private brands offering premium products that rival national brands in quality and taste.
Daymon’s Report: Consumer Shifts to Private Brands
Daymon, an advantaged solutions company, recently released its Private Brand Intelligence Report, revealing the increasing consumer shift towards private brands. The report indicates that 92% of consumers trust private brands as much as or more than national brands, with 83% viewing private brands as a better value for their money.
Jim Griffin, President of Daymon North America, emphasizes the rising levels of trust, quality, and value that are driving consumers towards private brands. This presents a significant opportunity for suppliers and retailers to invest in innovation and leverage the shifting consumer perceptions and desires.
Daymon’s report identifies three key pillars of product innovation that align with consumer needs and the evolving market environment. These pillars include “purchasing with purchase,” “fit for functionality,” and “uniquely for me.” By focusing on these pillars, retailers can strategically develop and expand their private brand programs to meet consumer expectations and drive growth.
Sam’s Club: An Affordable Thanksgiving Feast
Sam’s Club is helping last-minute American Thanksgiving shoppers set an effortless, elevated, and affordable holiday table with their traditional Thanksgiving feast for at least eight people, all for under $100. The items in this year’s meal are part of Sam’s Club’s own brand, Member’s Mark, with new additions such as pumpkin cheesecake, cranberry crunch salad, and sweet potato casserole.
This offering showcases Sam’s Club’s commitment to providing value and quality through their private brand products. By offering a complete Thanksgiving meal at an affordable price, they cater to the needs of their members and make holiday preparations more accessible for all.
Conclusion and Future Outlook
The world of retailer-owned brands is experiencing exciting developments that have the potential to reshape the industry. Keychain’s disruptive platform aims to bring clarity and convenience to the fragmented CPG supply chain, while Albertson Safeway’s premium pizzas showcase the innovation and quality of private brands. Daymon’s report highlights the increasing consumer trust and value perception of private brands, providing an opportunity for retailers to invest in strategic product innovation. Lastly, Sam’s Club’s affordable Thanksgiving feast demonstrates the value and accessibility of private brand offerings.
As we look to the future, it is clear that private brands will continue to play a significant role in the retail landscape. By focusing on innovation, quality, and value, retailers can meet and exceed consumer expectations, driving growth and loyalty. The potential for disruption and transformation is immense, and those who embrace these opportunities will thrive in the evolving retail landscape.