US – Target, a leading American retail chain, has launched a new grocery brand as parts of efforts to give its stores a brand refresh, make them more attractive to customers, and generate higher sale returns.
Dubbed Favorite Day, the new grocery brand will be comprised of a private label food and beverage line centred on snacks and sweet treats.
FoodDive reports that the brand will roll out with more than 700 products across multiple categories, including candy, trail mix, ice cream, bakery and beverage mixers.
Some of the selections include Caramel Macchiato Trail Mix, Gourmet Brookie Dough Ice Cream and Mini Everything Bagel Croissants.
The leading US retail chain says that shoppers will be able to buy the new brand in-store and online starting April 5.
Favorite Day is the next step in Target’s grocery store brand refresh, which began in 2019 with the launch of Good & Gather, now a $2 billion brand.
The company has also been phasing out its Archer Farms and Simply Balanced food brands while retaining a limited selection of Market Pantry products in line with its Brand refresh objective.
“We know that now more than ever, our guests believe in treating themselves as a balance to everyday schedules and stressors. Based on guest insights, we saw an opportunity to curate a line of delicious, high-quality items,” Target noted.
The retailer has been keen on strengthening its grocery division which had for a long time been a weak link in its multi-category approach.
The success of Good & Gather and the launch of Favorite Day is a demonstration of the company’s commitment to strengthen this previously weak division in its business.
Target’s strategy of bolstering its grocery division is timely given that food and beverage sales now comprise a significant portion of the company’s sales since the pandemic.
Food and beverage private label products have also continued to gain traction as consumers look for less expensive items and try private label brands as an alternative to national brands.
Nielsen data found that private label sales posted double-digit increases, outpacing national brands in the first quarter of 2020.
Additionally, a report by the Food Industry Association has urged food retailers and manufacturers to expand their private brand offerings, suggesting that value-oriented items and supporting at-home cooking could be top areas of focus.
The recommendations were based on the findings that private brands are either extremely or very important to 93% of the surveyed food retailers.
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