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Diving overview:
- Walmart announced on Tuesday: new private label grocery brands It’s called Better Good.
- With most items priced under $5, bettergoods focuses on three key elements: culinary experience, plant-based, and “no additives.”
- The company said Better Goods not only marks the largest private label food launch in the past 20 years, but also the earliest grocery brand to hit the market.
Dive Insight:
Bettergoods strives for uniqueness through flavor and addresses multiple categories while maintaining the retailer’s reputation for low prices. The move comes at a time when private label sales are helping grocers and retailers appeal to price-sensitive consumers.
Walmart describes Better Goods as “a new elevated experience that delivers high-quality, unique, chef-inspired food at incredible value.”
The line includes 300 items across categories such as frozen, dairy, snacks, beverages, pasta, soups, coffee and chocolate. Examples include chocolate almond milk, guacamole-flavored tortilla chips, pistachio nut butter, chicken wings with brown sugar BBQ dry rub, and double vanilla premium ice cream.
To develop the line, Walmart worked with suppliers around the world to source high-quality, trend-forward ingredients and flavors, the retailer said in an announcement.
The products range in price from less than $2 to less than $15 and are packaged in brightly colored packaging that Walmart says is “designed to delight.”
Plant-based items from Walmart’s Better Goods Private Label line.
Provided by Walmart
“Create without” item below the line.
Provided by Walmart
“Customers today expect more from the private brands they purchase and are looking for quality products at affordable prices to enhance their overall eating experience. We meet the needs of our customers in meaningful ways,” Scott Morris, Walmart’s senior vice president of private labels, food and consumables, said in the announcement.
Walmart’s Great Value grocery brand and Equate brand of pharmacy, health and beauty supplies have long focused on providing customers with the equivalent of national brands. Walmart has long offered private label products in certain categories, such as Oak Leaf Wine, Marketside Fresh Produce and Clear American Flavored Sparkling Water.
Private label sales accounted for nearly 21% of grocery industry sales in 2023. best ever, according to the Private Label Manufacturers Association. More than half (54%) of shoppers surveyed last summer I have plans to buy more or a little more of the store brand. FMI (Food Industry Association) said in a report last fall that this will be the case in the future, compared to 26% who said the same about well-known brands.
As retailers expand their private label offerings, consumers’ perceptions of store brands are changing from simply lower-priced national brand equivalents to differentiated, high-quality items.
Walmart also faces increased competition from Target for private label groceries. During February, Target launches low-priced private brand The product, called Dealworthy, includes 400 everyday essentials such as paper towels, paper plates, body wash, charging cables, and cotton balls. Some items under this line are less than $1, and most are less than $10.
