Walmart is launching a store-brand food brand as it seeks to attract younger shoppers

NEW YORK (AP) — Walmart Inc. is launching the U.S. retailer's largest food brand in 20 years by breadth of items, seeking to attract younger customers who aren't loyal to grocery brands and want more chef-inspired foods. reasonable prices.

The brand, called Bettergoods, has been a hit Walmart stores And the company's online shopping website. Walmart said Tuesday it expects to have 300 products by the fall, including frozen foods, dairy products, snacks, beverages, pasta, soup, coffee and chocolate. Prices range from under $2 to under $15, with most products costing less than $5.

The Bettergoods line is divided into three categories: Vegetarian options Such as desserts made from oat milk and dairy-free cheeses; Products that meet other dietary lifestyles, such as gluten-free, or made without artificial flavors, colors or added sugars; And “culinary experiences.” The last category contains items such as creamy corn soup with jalapenos and pasta from Italy.

The launch comes from the country's largest retailer Like inflation It has prompted shoppers to Look for less expensive alternatives, which raised the popularity of private label brands. Private label brands accounted for nearly 26% of the total market share in the number of units in the food and beverage category sold last year, compared to 24.7% during the previous year, according to market research firm Circana. This compares to 74.5% for national brands last year, down from 75.3% in 2022.

For so-called pantry staples, including breakfast meats, bakeware, fresh bread and salty snacks, private label brands accounted for 36.6% dollar market share in 2023, up from 36.2% in 2019. That's compared to national brands, which It accounted for 63.4% last year. That's down from 63.8%, according to Circana.

See also  Meta is looking at a new social platform that could compete with Twitter

But these store brands have become tastier, higher quality, and reflect national brands. Walmart's competitors, including Target, were growing and developing their own brands. Good aim and collection The food and beverage brand, which was launched in 2019, has expanded to include dishes such as chicken tikka masala.

Many grocery retailers face increasing competition from Trader Joe's, which offers shoppers a treasure hunt experience with a variety of high-quality meals, ingredients and snacks.

Bettergoods joins other food brands in Walmart stores, including Great Value and Equate, that offer lower-priced alternatives to national brand products. In contrast, the retailer said many Bettergoods products are designed to be unique to Walmart while introducing its customers to new trends and flavors.

“As an industry, we are seeing younger customers becoming more brand agnostic, prioritizing quality and value, and driving increased interest in private labels,” said Scott Morris, senior vice president of private labels, food and consumables at Walmart.

Leave a Reply

Your email address will not be published. Required fields are marked *