Through a special arrangement, what follows is an excerpt of a current article from Private Label Buyer, presented here for discussion.
Ideas for new private label products at The Fresh Market come from several key areas, including internal and external data analyses to identify opportunities, customer requests, store manager feedback and even successful existing programs (for line extension contenders). And The Fresh Market, the Greensboro, North Carolina-based grocery that now has 86 stores in 18 states, is always on the lookout for new and unique items and flavors - a fact that meshes well with its reputation as an "out-of-the-ordinary food destination store" for people who really enjoy cooking and eating good foods.
No matter what niche the company is targeting, it relies on a very detailed new product development process, noted Jennifer Oas, private label manager.
"We put a tremendous amount of time into product specifications and profile selection and strive for the right flavor profile on every item we develop," she said.
To locate manufacturers up to the task, The Fresh Market approaches some suppliers directly, but also relies on its partner, Daymon Worldwide. The Fresh Market team also likes to visit the manufacturing facilities and meet suppliers' quality assurance and product development teams face to face whenever possible. Once the team agrees on a supplier and a product's final specifications, the company begins the label development process.
Ms. Oas pointed to The Fresh Market Jersey Milk line as one success resulting from the team's product development process. Jersey Milk products are richer and creamier than "regular" milk, and Jersey cows naturally produce milk with slightly greater amounts of protein and calcium.
"By using a high-quality milk produced from cows not treated with rBST, and packaging it in glass like the classic 'milkman' bottles from the 1940s, we were able to communicate good nutrition, recyclable and/or reusable bottles, and old-fashioned wholesomeness while remaining price competitive," said Ms. Oas.
Because The Fresh Market's shoppers tend to be food-savvy and well-educated, they also are inclined to be more engaged in - and vocal about - what products they want to see in the stores and under the chain's own label.
For that reason and many others, private label development represents a fun and exciting area at The Fresh Market.
"Our team enjoys the sense of discovery and the quest for new and interesting products, and we are lucky to have partners who feel the same way we do," said Marc Jones, vice president of merchandising, non-perishables. "We wouldn't have the program we have today without partners like Daymon Worldwide and the many manufacturers who have shared the experience of discovering and producing unique and exciting private label products."
Discussion Question: Where do you think the best ideas come for private label development for stores?