Dive Brief:

• ShopRite unveiled two new flagship store brands, food brand Bowl & Basket and household brand Paperbird, according to a press release sent to Grocery Dive. Both lines will hit store shelves this month and will start with about 100 items. The collections will expand to a total of 300 by the end of the year and 3,500 newly branded products by the end of 2021.
• Its existing brands ShopRite, ShopRite Kitchen, ShopRite Trading Company and Cape Gourmet will convert to Bowl & Basket and Paperbird over the next two years. Some existing products will also be reformulated before being added to the new lines.
• The launch will include packaged salads; salty snacks like kettle-cooked potato chips; cooking oils, including avocado, safflower, canola and peanut; bottled water and paper goods like bath tissue and paper towels.

Dive Insight:

The company said its new brands kick off a "transformation" of its store brand strategy. Like other retailers, ShopRite has gone for an upscale aesthetic and quality-meets-value proposition to match national brands and win over consumers. In its release, the company noted the two new brands took years to develop and test with shoppers.

And like other retailers, ShopRite has chosen to streamline its store brands into just a few selections, reflecting shoppers' desire for a simpler, more unified experience.

The launch of the brands will be supported by two separate marketing campaigns. Bowl & Basket will convey a message centered on the ways food fits into shoppers' lives, while stylish-yet-effective cleaning will be the focus for Paperbird's campaign, titled "Clean in Peace."

The standard for private label items has gone up as retailers of all types are updating their existing store brand lines or launching new ones to improve quality. Target recently launched Good & Gather, which will replace its other private label food brands. Last month, The Fresh Market unveiled new private label products and packaging. 

But as private labels begin to outpace national brand sales, customers now expect more. According to a report by retail consulting firm Daymon, 20% of sales growth in private label comes from trendy, premium or organic products. 

According to Dave Harvey, vice president of Daymon, private label brands should be refreshed every three to five years. ShopRite is right on track here, and the company is looking to this investment to help it stand out in the very competitive northeastern markets where it operates.