US grocery leader Walmart shook up the industry this month when it announced that it is rolling out a new private label premium food line. Under the name of Bettergoods, the company says it is its largest private label release in two decades. “Today’s customers expect more from the private brands they purchase – they want affordable, quality products to elevate their overall food experience. The launch of bettergoods delivers on that customer need in a meaningful way,” said Scott Morris, Walmart’s senior vice president of private brands, food, and consumables in a statement.
The premium line seeks to appeal to younger consumers who are not loyal to grocery brands and want chef-inspired foods that are less expensive. Most products of the new brand are under $5. The packaging was designed in a mix of colours for a more premium look. The brand name bettergoods can be found as a single word in all lowercase letters and a custom typeface to look approachable and friendly. “With a vivid and colorful new brand identity that has the looks, messaging, and product offerings of more premium competitors, the goal,” says Walmart vice president of creative and design David Hartman, “was to create a brand that’s “as desirable as the leading national brands.”
Bettergoods products typically fall within three categories - culinary, plant-based, and “made without”. Walmart expects to have 300 products in the line by the fall, including frozen foods, dairy items, snacks, beverages, pastas, soups, coffee and chocolate.
Persistent inflation has made American shoppers cost-conscious, pushing the popularity of private label. According to PLMA, more than 1 of 5 grocery items sold in the US is a private label. In 2023, total private label dollar sales were USD236 billion, up by about USD10 billion, an all-time mark. Dollar sales rose 4.7%, vs plus 3.4% for national brands. Private label dollar share was 18.9%, ahead 0.2 points, likewise a high. Unit sales were nominally even, off 0.1%, vs national brands which shed 2.8%. Private label unit share was 20.7%, up 0.5 points and another record.
Private label in the US has continued to shine in 2024, recording unprecedented highs in both unit and dollar shares during the first four months. Dollar share was 20.5% and unit share was 23.1%, as of April 21. The new share standards came on the strength of private label’s outstanding performance versus national brands during the period. Private label dollar sales were up 2% vs a gain of 1.1% for national brands, while in unit sales the difference was even greater, as private label improved by 2.5% while national brands fell 1%.