Dive Brief:
- Walgreens has launched an assortment of health-focused foods and drinks under its Nice! private label line, the pharmacy chain announced Tuesday.
- The more than 150 items included in the new product tier, known as Nice! For You, are free of artificial flavors and sweeteners, synthetic dyes and high-fructose corn syrup.
- Walgreens is looking to tap into the better-for-you foods trend that has swept across the grocery industry in recent years to help steady its finances.
Dive Insight:
The new product line is arriving in Walgreens’ stores as the ailing retailer strives to sharpen its value proposition with shoppers in the wake of a disappointing third quarter.
Nice! For You is an add-on to Nice!, the house brand Walgreens rolled out in 2011 as part of an effort to simplify its private label portfolio and draw attention to its selection of value-priced essential goods.
Walgreens said the Nice! For You product tier includes items with “bold flavors,” such as oatmeal, dried fruit, jerky, frozen foods and baking products. Some of the goods sporting the new name are organic and gluten-free.
Walgeens noted in the announcement that all products under the broader Nice! line “meet national brand standards of high-quality ingredients,” but indicated that it decided to carve out a niche in the better-for-you space to better connect with shoppers focused on eating healthier.
The retailer pointed to research from Statista showing that half of U.S. shoppers define themselves as “healthy eaters” as a reason why it created Nice! For You.
“The evolution of our Nice! brand is designed to offer an efficient, highly relevant customer experience that meets their changing needs and preferences, while maintaining our commitment to deliver high quality products that taste great at an incredible value,” Tracey Brown, president of Walgreens Retail and the company’s chief customer officer, said in a statement.
Before assuming her role at Walgreens in mid-2021, Brown was CEO of the American Diabetes Association, a role in which she helped build relationships with retailers.
Walgreens is aiming to beef up its house brand grocery selection at a time when private label sales are becoming increasingly important for food retailers. Private labels accounted for a fifth of unit sales in the grocery industry last year, a record level, according to the Private Label Manufacturers Association.
Retailers across the board have recently been focusing on growing their presence in the private label space. In April, Walmart added a line of “quality, trend-forward” foods known as bettergoods, while Target in February introduced Dealworthy, a line of basic goods that includes paper towels, body wash and cotton balls.
Walgreens’ decision to enliven its range of house-branded foods comes as the retailer has run into difficulty pivoting from its traditional pharmacy business toward healthcare delivery. The company said in June that it aims to close a “significant portion” of its stores in the United States in an attempt to improve its fortunes.
