Dive Brief:

• Ahold Delhaize is rolling out an extension of its health-focused Nature's Promise line to include kids products, according to a press release. The first two items, sparkling seltzer water and squeezable fruit pouches, will be available at all of Ahold Delhaize’s retail banners by the end of the year, including Giant Food, Food Lion, Giant/Martin’s, Hannaford, Peapod and Stop & Shop.
• The naturally flavored sparkling seltzer comes in packs of six cans and includes flavors like blue raspberry, cotton candy and pink lemonade.  The fruit pouches will include flavors like apple cinnamon, apple berry banana and apple mango banana. Each pouch is 50 calories and gluten-free, BPA-free and does not contain added sugar or artificial flavors.
• The Nature's Promise Kids brand is created for children ages four and older. All products from the line will be free from synthetic colors, artificial colors and preservatives, MSG, sweeteners and high-fructose corn syrup. The products contain no more than 500 grams of sodium per serving. Less than 40% of calories come from added sugar and less than 10% from saturated fats.

Dive Insight:

The ingredients, or lack thereof, in Ahold Delhaize's new kids line represent one step forward for the retailer in its commitment to clean up all of its store-brand products by 2025. 

As consumer concern about the long-term effects of synthetic products rises, customers are showing a willingness to spend more on clean and free-from products. Close to 70% are willing to pay a premium for products that fall into the natural, organic, ethical, or "less of" category, according to a survey from L.E.K Consulting. The global clean label ingredient market is set to reach $47.5 billion by 2023, according to Research and Markets.

At the same time, the child obesity rate has tripled since the 1970s, according to the Centers for Disease Control and Prevention, and many shoppers want to combat this. Millennial parents, who are more likely to buy private label, are paying close attention to their childrens' diets and are more educated than ever on the ins and outs of healthy ingredients. But they’re also notoriously busy, so products like on-the-go fruit pouches that are convenient but healthy are favorable solutions.  

Retailers need to get their private labels right because they instill store loyalty along with higher margins. Consumers' trust in private label is growing, with 85% saying they trust it as much as the national brand. However, supermarkets have struggled to keep up with demand as well as mass retailers, according to the Private Label Manufacturers Association.