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Nice N Easy Tackles Private Label

7/26/2010

Nice N Easy Grocery Shoppes is tackling an initiative closely aligned with current retail trends — expanding its private label options.

"We watched the success that other retailers, mainly larger formats, have had with private label, and the quality of the products and packaging they introduced," said Jared Sturtevant, director of category management. "When done right, private label can help build a brand and that is what we are using it to do."

Within the past year, the chain rolled out four new private label lines — Easy Street Bakery packaged sweet snacks hit shelves in August with 15 SKUs; a zero-calorie isotonic with aloe launched in September under the brand n7 Restorative Hydrating Drink, with four flavors packaged in 32-ounce bottles; 12-ounce, shrink-wrapped bags of Easy Street Coffee for home brewing rolled out in House blend, Decaf and Dark Roast in September; and in April, Easy Street Gourmet Snacks Kettle Chips appeared in stores in six flavors and 2-ounce bags.

"Anything we consider adding to our private label portfolio has to mimic a fast-selling existing item, has to have the potential to contribute something to our brand, and certainly can not detract from our image," said Sturtevant on the selection of the four categories as private label candidates. He added the introductions are branded "Easy Street" — the name of the chain's foodservice brand — as it "translates better to the packaged goods we have introduced. It creates natural foodservice bundles and resonates well with our customers who know Easy Street means fresh and delicious."

Another reason these were chosen was to improve the profitability. "We have selected categories that we feel we are being held hostage by direct-store delivery (DSD) vendors with questionable service and terrible profit margins. This was our way of taking off the handcuffs — this do-it-yourself approach improved our presentation and margins," he said.

In addition, the chain also revamped its existing private label bottled water line — which is its No. 1 selling water in stores — with updated packaging and a shrink-wrapped case option. The previous label was dated, with a "psychedelic" look to it and an older company logo. The updated label features its new logo, the addition of the word "natural" as a product descriptor, its Web address and improved background imagery including an icy mountain lake that "suggests it is cold and refreshing," said Sturtevant.

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