Dive Brief:

• Dollar General is expanding its Clover Valley private label line with the addition of more than 100 new products as part of the company’s “Food First” initiative, according to a Tuesday press release.
• The discounter’s private label brand now includes a wider selection of staple food items such as sauces and snacks with many of the items featuring new packaging designs. 
• Broadening its private brand offerings comes as the discounter continues to see strong growth in the grocery sector of its business.

Dive Insight:

Clover Valley, which was introduced to Dollar General in 2009, will now include approximately 600 products. The newly added ones include lobster bites, crab cakes, trail mixes, flavored sunflower seeds, General Tso’s chicken bites and more, the announcement listed. 

The retailer’s Food First initiative aims to provide customers with healthier food options. The announcement noted that around 80% of Dollar General’s stores serve communities of 20,000 or fewer people, notably in rural areas, that rely on them for household essentials.

As of the company’s first quarter, nearly 3,900 Dollar General stores offer fruits and vegetables, and the company has plans to have produce in 5,000 locations by January 2024, according to the press release. Dollar General also stated that consumables accounted for around 80% of its total sales. The planned rollout of its larger store format will also allow the grocer to introduce more fresh products, the announcement noted. 

“Customers shared that they believe in the quality and equity of Clover Valley and were receptive to more innovative products. We have put ‘Food First’ this year because we see a need and to fulfill the desire for even more options,” Jackie Li, the discounter’s senior vice president of private brands and global sourcing, said in a statement. 

Dollar General continues to be a competitor to traditional grocers as high inflation — though tapering off more and more each month this year — still pressures consumers to find cheaper alternatives. Earlier this month, the discounter rolled out a new program in partnership with Ibotta Performance Network called DG Cash Back Program, which allows customers to earn cash back in their DG Wallets on purchases of hundreds of eligible items.