Supervalu’s New Private Label Hits More Stores

More than 2,400 products within the new Essential Everyday brand line are now available in select independently owned grocery stores under the Supervalu banner; in June, company-owned grocery stores began transitioning from various private labels to the new brand.

Eden Prairie-based Supervalu, Inc., said Monday that it has begun to introduce its new private-label brand in independently owned grocery stores under its banner.

Essential Everyday will replace private-label brands Flavorite, Richfoods, and Homelife. More than 2,400 products within the new brand line are now available in select independent retail locations. By the time the full rollout is completed in early 2013, Essential Everyday will be available to Supervalu's 2,000-plus independent grocery stores across the country.

In June, Supervalu-owned grocery stores began transitioning from various private labels to Essential Everyday in the cereal, wholesome snacks, pasta, and pasta sauce categories.

In May 2011, Supervalu President and CEO Craig Herkert told investors that the new store brand was expected to increase store-brand sales by 1 percent over each of the next three years. And company spokesman Mike Siemienas said at the time that the packaging-related cost savings could help lower prices, adding: “We'll be looking to pass the savings on to the customers.”

The transition to a new private-label brand is also expected to enable Supervalu to take a national approach to advertising and promotions.

“Early results have shown that Essential Everyday is performing very well at our 1,100 Supervalu-owned stores, and we believe that our independent retailers will see a positive customer response as well,” Leon Bergmann, president of Supervalu's independent business, said in a statement.

According to Supervalu, in package design research, Essential Everyday outperformed other store brands on measures of purchase interest, perceived value, premium perception, and overall appeal.

Some of Supervalu's other private-label brands include Culinary Circle, Stockman & Dakota, Wild Harvest, Equaline, and Shoppers Value.

For its most recent fiscal year, which ended in February 2011, Supervalu reported $37.5 billion in sales, down 7.5 percent from the same period the prior year, and a $1.5 billion net loss. It is among Minnesota's five-largest public companies based on revenue.