General Consumer Sentiment

• According to Lee Breslouer, who was writing for the Thrillist, smart food shoppers like himself choose to buy Whole Foods 365 Everyday Value products as they think the products are affordable and competitively priced.
• Also, the general consumer sentiment for Whole Foods' 365 Everyday Value product food is that it is delicious.

Testimonials From Customers

• Regarding Whole Foods 365 Everyday Value Sparkling Water Pure product, there were mixed sentiments on Amazon. One customer thought that the price was fair since the product was delivered to their home, and the product tasted fresh and clean with no aftertaste of metal. Another customer liked that the product had the right amount of carbonation, while another liked the way the product had no calories and calmed her stomach. Finally, a customer thought the product was inexpensive and a good healthy option.
• However, one customer who bought the Whole Foods 365 Everyday Value Sparkling Water Pure product to serve it in a party did not enjoy what they said was an unclean taste and the fact that the water did not enhance their mixed drink as they would have liked. They regretted that they had not been able to go to the store to pick up another brand.
• Another customer thought the water product tasted funny, fake, and metallic, and they had to mix it with other drinks to hide the flavor. One customer complained of poor packaging and stated that all the water had leaked out of the severely dented cans that they had bought.
• When Thrillist asked Whole Foods fans and food Instagrammers to talk about their favorite 365 Everyday Value products, Sarah Gim of Delicious stated that she loved the 365 Everyday Value Organic Almond Milk Unsweetened product's texture which stayed smooth and was excellent for coffee. Rachel, a dietitian, praised The Whole Foods 365 unsweetened almond butter for being healthy and only having dry roasted almonds and sea salt.
• Another customer called Caitlyn stated that she was a big fan of 365 Everyday Value Bite-Sized Wheat Squares Cereal as it was free of sodium, but contained 100% whole grains, which kept her fuller by slowing digestion and were a good source of fiber.
• Other consumers believed that the 365 Everyday Value Organic Almond Milk Unsweetened product's texture stayed smooth and was a perfect combination for coffee.
• One consumer who is a dietician thought that The Whole Foods 365 unsweetened almond butter was healthy, as it only had dry roasted almonds and sea salt. Detailed insights are below.

Overview of The Own-Label Products

• According to its website, 365 Everyday Value, Whole Foods Market, and Engine 2 Plant Strong are the own-label brands of Whole Foods.
• Whole Foods' 365 Everyday Value brand uses 'Value priced plus high quality' as the brand's key messaging to attract shoppers. It offers products that meet the company's quality standards and come in natural and organic selections at affordable prices.
•  Whole Foods Market offers products with "exceptional taste, authenticity, and remarkable quality". Made of selected natural and organic produce, the products of Whole Foods Markets tend to be unique and exotic.
•  Engine 2 Plant Strong focuses on 'strong' plant-based meals to help customers fulfill their nutrition needs without animal products. This brand is only available through Whole Foods Market and Amazon. It also provides various meal recipes on its website, ranging from breakfast, lunch, dinner, to dessert, using the products of Engine 2 Plant Strong.
• A customer may file a complaint and return the Private Label products of Whole Foods if he/she finds unusual taste or inconsistency in the products.
• Own-label products of Whole Foods that are labeled as vegetarian may contain animal by-products that are not acquired from animal slaughter. For instance, products such as honey, milk, and eggs are acceptable for Whole Foods' vegetarian products. However, products labeled as vegan do not contain any ingredient from animal or insect sources, such as carmine, gelatin, rennet, and beeswax.

Own-Label Product Categories

• Whole Foods currently features approximately 1,184 products from 365 Everyday Value brand on its website.
• The breakdown of 365 Everyday Value products according to category is as follows: produce (26 products), dairy and eggs (84 products), breakfast (28 products), cheese (78 products), frozen foods (144 products), beverages (102 products); snacks, chips, salsa, & dips (197 products), pantry essentials (449 products); breads, rolls, & bakery (41 products); beef, poultry, & pork (29 products), seafood (4 products); and wine, beer, & spirits (2 products).

• Whole Foods features 32 products from Whole Foods Market brand on its website.
•  Whole Foods Market products range from organic produces, vanilla extract, poultry, cold-pressed juices, cheeses, seasonings, to bread and bakery.

• Whole Foods features 45 products from Engine 2 Plant Strong brand on its website.
•  Engine 2 Plant Strong products range from almond milk, tortillas, organic crispbread, granola, plant burger, hummus, chili, organic squarito, pasta sauce, to ravioli.

Own-Label Products Vs. Other Brand Alternatives

• The breakdown of Whole Foods products according to category is as follows: produce (304 products), dairy and eggs (at least 635 products), cheese (250 to 1,000 products), frozen food (at least 608 products), beverages (at least 1,112 products); snacks, chips, salsa, & dips (at least 1,515 products), pantry essentials (at least 1,708 products); breads, rolls, & bakery (456 products), breakfast (277 products); beef, poultry, & pork (384 products), seafood (69 products), prepared foods (107 products); and wine, beer, & spirits (at least 540 products).
• Whole Foods is estimated to sell 7,965 to 8,715 products.
• Although the total number of products carried by Whole Foods was not publicly available, based on our estimates, private-brand products account for approximately 14.5% to 15.8% of all products sold by the company.

The Popularity of Own-Label Products

• 365 Everyday Value was estimated to contribute $2 billion in sales in 2017 and will rise to $20 billion in 2027.
• As of now, 365 Everyday Value is the second best-selling private label brand on Amazon.
• According to Amazon, the most popular products of Whole Foods' own-label brands are snacks, canned goods, as well as frozen vegetables and fruits.
• 365 Everyday Value Black Beans with No Salt Added gained 4.8 stars based on 47 reviews on Amazon. Some customers who bought this product liked how it tasted better than other products. However, a customer said that the taste was very bland.
• 365 Everyday Value Sweetened Dried Organic Cranberries received 4.5 stars based on 19 reviews on Amazon. Some customers said that this product was delicious. But, a couple of customers claimed that the product was way too sweet.
• Delish highly recommended some products from 365 Everyday Value, such as eggs, nut milk, peanut butter, cereals, fresh fruits, coconut oil, coconut chips, brown rice, pumpkin yogurt, chocolate sandwich cremes, and dill pickled almonds.
• An article from Thrillist recommended a bunch of products from 365 Everyday Value, including unsweetened almond milk, almond butter, wheat squares cereal, freeze-dried strawberry slices, maple syrup, cauliflower rice, and turkey breast.

Research Strategy

• Produces: 304 products
• Fresh fruit: 95 products
• Fresh herbs: 14 products
• Fresh vegetables: 195 products
• Dairy & Eggs: 635+ products
• Butter & margarine: 59 products
• Dairy alternatives: 200+ products
• Eggs: 43 products
• Milk & cream: 133 products
• Yogurt: 200+ products
• Cheese: approximately 250 to 1,000 products
• Frozen Foods: 52 + (200 plus) + 97 + 59 + (200 plus) = 608+ products
• Frozen breakfast: 52 products
• Frozen entrées and appetizers: 200+ products
• Frozen fruits and vegetables: 97 products
• Frozen pizza: 59 products
• Ice cream & frozen desserts: 200+ products
• Beverages: 1,112+ products
• Coffee: 200+ products
• Juice: 200+ products
• Kombucha and tea: 116 products
• Soft drinks: 94 products
• Sports, energy, & nutritional drinks: 102 products
• Tea: 200+ products
• Water, seltzer, & sparkling water: 200+ products
• Snacks, Chips, Salsa, & Dips: 1,515 products
• Candy & chocolate: 200+ products
• Chips: 200+ products
• Cookies: 200+ products
• Crackers: 200+ products
• Jerky: 60 products
• Nutrition & granola bars: 200+ products
• Nuts, seeds, & dried fruits: 200+ products
• Popcorn, puffs, & rice cakes: 78 products
• Salsas, dips, & spreads: 177 products
• Pantry Essentials: 1,708+ products
• Baking: 200+ products
• Canned goods: 200+ products
• Condiments & dressing: 200+ products
• Jams, jellies, and nut butters: 185 products
• Pasta & noodles: 200+ products
• Rice & grains: 140 products
• Sauces: 193 products
• Soups & broths: 190 products
• Spices & seasonings: 200+ products
• Breads, Rolls, & Bakery: 456 products
• Breads: 180 products
• Breakfast bakery: 26 products
• Desserts: 104 products
• Rolls & buns: 71 products
• Tortillas & flat breads: 75 products
• Breakfast: 277 products
• Cereal: 176 products
• Hot cereal & pancake mixes: 101 products
• Beef, Poultry, and Pork: 384 products
• Deli meat: 94 products
• Hotdog, bacon, sausage: 58 products
• Meat alternatives: 79 products
• Meat counter: 26 products
• Packaged meat: 67 products
• Packaged poultry: 39 products
• Poultry counter: 21 products
• Seafood: 69 products
• Prepared Foods: 107 products
• Wine, Beer, and Spirits: 540+ products
• Beer: 200+ products
• Spirits: 140 products
• Wine: 200+ products

Trader Joe's Own-Label Products

• Trader Joe's is notoriously secretive about its private-label, including sales and manufacturer partnerships.
• Around 80% of Trader Joe's products are own-label, despite carrying on one-quarter (or less) the average number of SKUs per store.
• Reports vary for the overall size of Trader Joe's stores. Some state only around 2,000 SKUs (meaning ~1,600 are own-label), whereas others estimate as high as 4,000 (~3,200 own-label).
• Their main selling point, especially surrounding own-label products, is "curating a small amount of high-quality grocery items".
• This, in turn, creates consumer trust. However, unlike other premium grocery stores (for example, Whole Foods) who also only sell certain standards of own-label products, Trader Joe's branding is "fun and whimsical".
• In addition to branding and interesting packaging, one of Trader Joe's signature marketing methods for selling its own-brand products is through product sampling.
• Trader Joe's is also known for its seasonal rotation, but some of its products are offered year-round and have gained extreme popularity.
• Its single most popular product is its Madarin Orange Chicken, followed by Cauliflower Gnocchi, Everything But the Bagel (seasoning), Dark Chocolate Peanut Chips and Unexpected Cheddar. The full list of the most popular product in 16 different categories is available on the Trader Joe's website. This list is based on customer votes, as Trader Joe's has not released sales data.
•  Food and Wine Magazine even went so far as to find the most popular Trader Joe's item in each US state. This list was calculated using Google search interest data. The most common items are Sweet Chili Sauce and Everything But the Bagel.
• Trader Joe's own brand ranked the highest among all private labels consumers want to purchase most. Survey respondents cited the grocer's established reputation within that category and that they were more comfortable purchasing own-label products from Trader Joe's than other brands.
• Trader Joe's products are well-talked about and have even garnered what some may call a cult following. Social media accounts exist for the sole purpose of discussing Trader Joe's products (see: Trader Joes Obsession, Trader Joe's List and Trader Joe's Kitchen).
• These accounts are extremely popular. The most, Trader Joe's List has over 1 million followers.

Research Strategy

Overview

• Sprouts has over 2,400 own-label products in sales, spanning across different departments including produce, deli, bakery, bulk, dairy, meat & seafood, grocery aisles, frozen, and vitamins & body care.
• Sprouts' own-label brands carry the unique selling proposition of being “affordable” and “healthy living”.
• Prominent sub-brands of Sprouts own-label products include Market Corner, The Butcher Shop, The Fish Market, Sprouts Vitamins, and Sprouts Essentials.
• CEO Jack Sinclair plans to streamline the multiple lines of its own-label brands into a single, cohesive brand.

Sub-Brands and Product Lines/ Departments

• Sprouts own-label sub-brands such as the Market Corner, The Butcher Shop, The Fish Market, Sprouts Vitamins, and Sprouts Essentials carries 106, 44, 13, 398, and 59 unique products respectively. The further breakdown for each department is as follows:
• Sprout offers 52 own-label products for the produce department and 61 own-label products for the deli department.
• The store also offers 40 own-label products for the bakery department and 86 own-label products for the bulk department.
• Sprout offers 40 own-label products for the dairy department and 52 own-label products for its meat & seafood department.
• Sprout offers 807 own-label products for the grocery aisles department and 116 own-label products for the frozen department.
• The store offers 398 own-label products for its vitamins & body care department.
• It offers no own-label products for its beer & wine and catering departments.

Own-Label Products Versus Other Brand Alternatives

• An overall 1,712 out of 13,643 products listed on Sprouts’ online shop is own-label. This is roughly equal to 12.5% of all unique products sold, while the remaining 87.5% are products from other brands.
• Departments with the highest percentage of own-label products include produce (29%), frozen (26%), and grocery aisle (17%). Product lines with the lowest percentage of own-label products include vitamins & body care (7%), deli (9%), and dairy (10%).

Popularity of Own-Label Products

• The most popular own-label product is “Purified Water with Electrolytes”, followed by “Cage Free Large Brown Grade-A Eggs” and “Sprouts Spinach”. The extended list of Sprouts own-label products, sorted by popularity can be found here.
• According to figures reported in September, 14% of Sprouts revenue comes from its own-label products and 45% of customers purchase one or more own-label product.
• Sprouts forecast growing to 16% of sales consisting of its own-label products by late 2020 or 2021.

Research Strategy

Private Label Brands

• In March 2017, it was reported that Earth Fare had over 500 private-brand products on store shelves. By early 2019, that number had increased to over 1,300.
• All of Earth Fare's private-brand products are made exclusively with non-GMO ingredients.
• Earth Fare offers three tiers of private-label products: Earth Fare Everyday Value; Earth Fare Organics; and Handpicked, Discovered by Earth Fare.
• Although the total number of products carried by Earth Fare was not publicly available, based on our estimates, private-brand products account for less than 6.68% of all products sold by the company.
• The Everyday Value line, in addition to being free of GMO ingredients, also is free of any ingredient on Earth Fare's Boot list. The list includes over 100 ingredients that Earth Fare guarantees will not be in products they sell, with the goal of promoting clean eating that is safe from harmful ingredients.
• The Organic Line is also GMO free and contains no items from the boot list, but is additionally third-party certified organic.
• The Handpicked line was introduced in 2018 and focuses on premium globally inspired foods.

Helpful Findings

• Earth Fare's partnership with Instacart allowed them to offer same day pickup at some store locations including Asheville, Charlotte, and Charleston.
• The company announced in late 2019 that they were planning on adding 15 more stores in Florida which would bring the total to 30.
• Earth Fare is going to start carrying the Straight Hemp line of CBD products in its stores, to expand consumer access and also provide education about the products.
• Forbes named Earth Fare the 8th best employer in NC in 2019.

Research Strategy

• Produce: 610 
• Meat: 610 
• Seafood: 285 
• Grocery: 10,000+ 
• Wellness & Beauty: 5,000+ 
• Deli: 600 
• Dairy: 870
• Frozen: 1,480

Overview

• Wegmans is a privately-held regional supermarket chain having a presence across seven states with 101 stores.
• In 2018, the weekly sale per store at Wegmans was nearly five-times to that of a typical supermarket, i.e., $2.5 million vs. $0.45 million.
• The beloved regional grocer features a cult-like following across the mid-Atlantic region. According to Business Insider, the shoppers rave about its own-label products.
• Wegmans offer four categories of own-label products, i.e., Organics, Food You Feel Good About, Wegmans Family Pack, and EZ Meals.
• The company offers more than 3,000 organic products that are USDA certified. Further, the company offers Family Pack products that promise savings of more than 30% and Food You Feel Good About products that contain no artificial flavors, colors, or preservatives.
• Wegmans categorize their products across 30 departments, ranging from baby products, cheese, meat, deli, floral, wines, and spirits.

Product Categories: Own-Label Vs. Branded

• The company offers about 50,000 to 70,000 products across its major stores. Further, the chain features a selection of more than 6,500 own-label products across its stores. The contribution of private-label products hovers in the range of 9% to 13%.
• Additionally, the company also offers a selection of more than 1,950 own-label meals and recipes
• The top categories featuring the highest number of own-label products include desserts with 183 products, ready to cook meats with 173 products, candy and gums with 150 products, fresh-baked bread with 121 products, chips and snacks with 119 products.
• It is noted that all top categories with the highest number of own-label products, comprised products majorly from Wegmans own-label selection only, i.e., bread, meats, candy/gums, among others.
• The pricing comparison of some own-label products to that of nationally branded products can be compared as follows: eggs (1 dozen) $2.69 vs. $4.14; butter (per pound) $2.99 vs. $3.95; bananas (per pound) $0.49 vs. $0.57.

Popularity of Own-Label Products

• In 2018, more than 5,300 people asked Wegmans to open a store in their community. Further, more than 8,000 people appreciated the services and products offered by Wegmans.
• In 2018, the Harris Poll ranked Wegmans as the second best-known brand owing to its products, services, vision, emotional appeal, financial performance, social responsibility, and leadership.
• According to Engagement Labs, about 90% of conversations about Wegmans is positive, while only 6% is negative.
• According to WRAL, Eater, and NY Post, the most popular own-label products by Wegmans include basting oil, prepackaged foods, Nonna’s sauce, dill dip, and cheese selection.

Overview

• Costco consolidated all of its private-label lines under the name of Kirkland in 1995. Kirkland was named after the city hosting the corporate headquarters for Costco, i.e., Kirkland, Washington.
• The Kirkland Signature is an own-label brand of Costco. It is considered as a globally recognized “gold standard” of high quality and exceptional value products.
• According to UBS, the valuation of Kirkland Signature reached nearly $75 billion in 2019.
• Costco is able to maintain low prices by selling Kirkland products at least 20% cheaper than other branded products available at Costco stores.
• The recent annual report states that the company is focusing on in-country sourcing to enhance member value, reduce costs, and minimize the impact of transportation on the environment.
• According to Kiplinger News, the company has continuously focused on developing the range for Kirkland products by getting them manufactured by the same companies producing branded products 
• A typical warehouse of Costco stocks about 3,700 SKUs on average. Further, the company offers nearly 360+ Kirkland Signature products (own-label) at any given time. In comparison, most of the US supermarkets stock about 40,000 to 50,000 items, and a typical Walmart Supercenter sells around 142,000 different SKUs.

Own-Label Product Categories

• The company currently features 361 Kirkland Signature products (own-label) on its website.
• The breakdown of own-label products according to category is as follows: food, household and pet category (224 products) ; health & personal care (68 products) ; clothing, luggage and handbags (42 products); floral and gift baskets (8 products); gourmet foods (7 products) ; furniture and mattresses (6 products) ; all other products' category (30 products).
• The break down of Kirkland products according to price is as follows: Less than $25 (264 products); between $25 to $50 (74 products); between $50 to $100 (13 products); between $100 to $200 (2 products); between $200 to $2000 (7 products).
• Over time, the company expanded its Kirkland Signature range to include apparel, fresh foods, sporting goods, household basics, organic products, and health/beauty products.
• In 2019, the company anticipates huge success from the introduction of new categories by Kirkland, i.e., razors, sparkling water, and kombucha.

Own-Label Products Vs. Other Brand Alternatives

• Costco sells around 3,800 different products across the US, including more than 360 own-label products under the name of Kirkland Signature.
• The private-label products form about 9.5% of the total product offering by Costco. Alternatively, Kirkland Signature accounts for nearly 30% of the total revenues for Costco.
• For branded products, the company caps its markups at 14%, and for own-label products (Kirkland brands), the markup is capped at 15%.

Popularity of Own-Label Products

• According to a recent report by Digital Commerce 360, the breakdown of CPG market share held by top private-label direct-to-customer retailers in the US was as follows: Costco (Kirkland Signature) 29%, Kroger 19%, Walmart 19%, Target 13%, and Amazon 1%.

• According to Business Insider, Kirkland's popularity is one of the top reasons for customers to shop at Costco. The brand appeals to customers who seek quality products at an affordable price. Additionally, analysts at Barclays state that "Kirkland is a brand in its own right."
• The most popular and highly rated products sold by the Kirkland Signature include Supreme Diapers with 4.7 stars based on 8813 reviews, followed by Baby Wipes with 4.5 stars based on 5270 reviews, and Leather Golf Glove with Ball Marker featuring 4.5 stars based on 4488 reviews.
• Some other popular products include Men’s Crew Neck Tee (6-pack) with 4.6 stars based on 4093 reviews and Ladies' Trench Rain Jacket with 4.6 stars based on 2816 reviews.