Albertsons continues to build private label momentum

Dive Brief:

Albertsons is updating its Signature Select private label line with refreshed branding and more than 300 new products set to roll out this year, according to a company release.
As part of the brand refresh, Albertsons has streamlined its Signature Kitchens, Signature Home, refreshe, and The Snack Artist brands under its Signatura Select line — a move that will create "greater consistency in every aisle," according to the grocer. The company has also updated its Signature Select tag logo to include "greater flexibility" across various categories.
Signature Select's soon-to-be-released products includes a citrus-and-herb spatchcock chicken. The line also recently saw new flavor introductions under its Soleil sparkling water brand, including cranberry raspberry, strawberry, and black cherry. Signature Select includes more than 2,400 products.

Dive Insight:

Albertson’s launched its largest private label brand, Signature, in April 2016 with six lines reaching across categories — Signature Select, Signature Kitchens, Signature Farms, Signature Café, Signature Home and Signature Care. Each of those lines has grown considerably since then, with the company rolling out 1,100 new Signature SKUs last year alone. Recently, Albertsons introduced two new Signature Reserve ice cream flavors, Signature Cafe snack boxes and new Nourish Bowl meal kits under the Signature Farms brand.

The updated assortment reflects an increasing level of sophistication in store brand development similar to what other grocers like Kroger and Aldi have undertaken. Recent reports indicate premium-grade store brands are in high demand and driving growth along with natural and organic releases.

To that end, Albertsons has also rapidly expanded its O Organics and Open Nature lines along with premium offerings like Primo Taglio and Waterfront Bistro. Sales of Open Nature and O Organics grew by 14% in last year's fourth financial quarter and, combined, now account for a quarter of all natural and organic sales.

In April, Albertsons launched a new line of 17 compostable eco-friendly products with its Open Nature brand. Open Nature products include tree-free, BPA-free and plastic-free cutlery, straws, cups and will eventually offer bamboo tissues and washable rayon towels.

Private label brands are growing in popularity, but grocers aren't reaping as much of the rewards as they would like. Mass merchandisers have seen dollar volumes in private label brands increase 41% over the past five years, according to a recent report by the Private Label Manufacturers Association. Twelve-month IRI data published in November, meanwhile, showed that club and mass retailers grew store brand basket sizes by 3.3% and 2.9%, respectively, while grocers' store brand dollar sales were up 1.2% while unit sales dropped 1.7%.