Dive Brief:
- Kroger announced Monday the launch of Mercado, a new Hispanic-inspired food and beverage private brand.
- The new line consists of more than 50 products, including fresh meat, beverages, snacks, sides and desserts.
- The grocer continues to see success in its private label offerings as its budget brand Smart Way was reported to be the fastest-growing private label brand in the second quarter, according to findings from Numerator.
Dive Insight:
The launch of Mercado is well-timed with Hispanic Heritage Month, which runs from Sept. 15 to Oct. 15 this year.
Products in the new line include “core Hispanic ingredients” as well as beverages, including queso fresco, queso panela, Oaxaca cheese ball, chorizo ground sausage, thin sliced beef strip steak and two flavors of agua fresca, per the announcement.
Kroger’s Vice President of Our Brands Juan De Paoli said in a statement that the new private brand “fills a void for some customers and creates a cultural experience for others.”
A spokesperson for the grocer noted in an email that Kroger tapped consumer research as well as its culinary experts to develop authentic products within the Mercado brand.
Other grocers have bolstered their offerings and merchandising over the past few weeks in timing with Hispanic Heritage Month. For example, in an effort to elevate Hispanic-owned businesses, Meijer highlighted a collection of grocery brands, home goods, assorted gifts and clothing at all of its supercenters. The initiative will run for the duration of Hispanic Heritage Month.
Currently, Kroger’s private label portfolio includes more than 13,000 products under brands like Private Selection, Simple Truth, Murray’s Cheese, Home Chef, Smart Way and Vitacost. Mercado is the latest addition to this lineup as Kroger continues to expand its private label offering. In September, the grocer launched a new seasonal collection under its Private Selection line with over a dozen fall-themed products across pantry, bakery and floral.
