Dive Brief:

• Giant of Landover has rolled out Taste of Inspirations, a premium private label line, to its 167 stores, according to a news release. Winsight Grocery Business reports that Stop & Shop and Peapod are also adding the line.
• Developed by Delhaize-owned Hannaford, Taste of Inspirations has appeared in Hannaford and Food Lion stores for several years. The line includes 85 selections, including pasta sauces, salad dressings, pizzas and desserts.
• To spur adoption, Giant will hold in-store samplings of Taste of Inspirations products April 28 and 29. "From shaking up the regular dinner routine with our Grilled Pineapple BBQ Sauce, to treating dinner guests to our Chocolate Lava Cake, this line can be part of the everyday indulgences that bring something extra special to our customers,” Tonya Herring, senior vice president of merchandising at Giant Food, said in the release.

Dive Insight:

In addition to significant cost savings and enhanced purchasing power, the merger that formed Ahold Delhaize two years ago is leading to consolidation in key areas like private label.

Last year, the company announced it would combine its various natural and organic store brands, which see annual sales in excess of $1 billion, under the Nature’s Promise label developed by Stop & Shop. Now it’s expanding Hannaford's premium Taste of Inspirations line to a new batch of stores.

Ahold Delhaize is taking top performers throughout its banner portfolio and creating a more unified lineup of store brands. This streamlines production and consolidates marketing efforts. It also reinforces a structure in which individual banners are test labs, and the company can scale up top products and innovations.

As Winsight Grocery Business reports, Taste of Inspiration seems to be taking the place of Simply Enjoy, a store brand that Giant, Stop & Shop and Peapod have all offered since 2006. The line has a diminished presence on each of the retailers’ websites.

It’s becoming increasingly common for retailers to offer a range of private label selections, including premium lines. Walmart recently came out with its Sam’s Choice Italia brand, while Southeastern Grocers has its Prestige brand. Last summer, Kroger sued Lidl over its Preferred Selection line, claiming it was too close to its own premium Private Selection brand. The lawsuit has since been withdrawn.

The stakes are getting high in private label, which offers better margins and key points of differentiation for retailers. Store brands now make up 17% of all grocery sales, according to the Private Label Manufacturers Association, and could grow market share by as much as 10% over the next decade. A recent survey from retail services company Daymon found that 81% of shoppers buy private brands at least almost every time they go shopping, and 85% say they trust private brands as much as national ones.

In addition to its store brand expansion, Ahold Delhaize has extended its Guiding Stars nutrition rating system, also developed by Hannaford, to Ahold stores. Look for other integrations as the company continues to look for ways to leverage its size and diverse collection of retail brands.