Dive Brief:
- Walmart will begin selling a variety of Dirty Lemon’s low-calorie drink, including Charcoal, Collagen and Ginseng, at about 500 stores this spring, according to CNN Business. Each flavor has its own health benefits, however, the base remains lemon and water.
- The premium product will lower its price for Walmart shoppers to $6.99 per bottle, compared to $65 for a six-pack online or about $10.83 per bottle.
- Although the drink will be available on Walmart shelves, it will not be available to purchase on Walmart’s website. Prior to Walmart, Dirty Lemon could only be bought online or be picked up in one of Dirty Lemon’s few stores, which have fridges stocked with the product and no employees.
Dive Insight:
As a low-price retailer, Walmart’s decision to carry premium Dirty Lemon products shows its efforts to expand its product assortment to target health-conscious shoppers, and lowering the price of the product by almost $4 is what could drive shoppers to its stores.
While target millennials, who often enjoy the feeling of exclusivity by being able to only purchase Dirty Lemon online, may be initially turned off by the drinks' appearance at such a mainstream retailer, they are still still price-sensitive, Brian Choi, managing partner and CEO of Food Institute, told CNN Business. And if the product is exclusive to Walmart, then it could still hold that novelty factor while also being more affordable.
In addition to adding Dirty Lemon products, Walmart has made moves recently to add other healthy fare to its stores. In October, Tiller & Hatch Supply Co. launched a line of nutritious frozen meals, backed by celebrity couple Jennifer Lopez and Alex Rodriquez. The meals are free from artificial flavors, colors and MSG, as well as use meats without hormones and antibiotics. The retailer also began stocking vegan cookies Emmy's Organics in January 2019 at 3,800 locations.
Product selection isn't Walmart's only strategy to draw in more health-conscious consumers. The retailer widened its aisles and installed bins to its produce section to make it look similar to a farmers market, according to Marketwatch. It also added health clinics to its Supercenters.
For Dirty Lemon, Walmart allows the direct-to-consumer company to broaden its audience. Founder and CEO Zak Normandin told CNN Business that working with retailers is “the only way forward," noting that the online marketplace is more expensive and competitive than it was four years ago.
