Walgreens Boots Alliance and Kroger are hoping to cut costs in their supply chains with the launch of the Retail Procurement Alliance. The companies aim to open the group purchasing effort to other retailers, and Kroger and Walgreens will also explore opportunities for manufacturing goods for each other.
Target's Good & Gather private-label food brand launched in September and will expand to more categories next year as the retailer phases out its Archer Farms brand. Food and beverage generates about 20% of Target's total sales and Good & Gather has the potential to become the retailer's biggest private-label line, CEO Brian Cornell said.
General Mills is supplementing the iconic shape of original and Honey Nut Cheerios for the first time in decades with hearts for a limited time. A promotional campaign for heart health will accompany the shape change which launches nationwide in January, raising awareness leading to Heart Health Month in February.
Online retailer Stitch Fix is finding success because it understands and respects consumers' individual preferences, CEO Katrina Lake says. Lake founded the online fashion firm in 2011 and has rolled out a service that uses data from customers' buying history to recommend individual items to them for purchase.
Fresh food sales are being driven by an increase in private-label sales, craft-quality items and boosted plant-based purchases by flexitarians, according to a Daymon report. Retailers have the opportunity to educate shoppers about plant-based items and create unique in-store destinations for signature offerings.
H.E. Butt Grocery has updated its mobile app to allow customers to place curbside pickup or home delivery orders via their smartphone. Shoppers can also redeem coupons, locate items in the store and browse offerings using new search functions.
Food retail companies are stepping up when it comes to health and wellness programs, with 90% boasting established programs and 49% having them for both employees and shoppers, according to an FMI report. "Grocers understand their value as both a destination and partner in a shopper's health-and-wellness journey," says FMI's Hilary Thesmar.
Nestle is divesting its US ice cream business to Froneri, a joint venture it established with private equity firm PAI Partners in 2016, for $4 billion, with the deal expected to close by the end of 2020's first quarter. The goal is to reinvigorate sales of brands such as Haagen-Dazs, Dreyer's and Drumstick, says Nestle CEO Mark Schneider.
In the wake of anti-competitive concerns from a federal regulator, Constellation Brands today announced it has revised the terms of its agreement to sell part of its wine collection to E. & J. Gallo. The companies agreed to a new price of $1.1 billion, lowered from its original $1.7 billion, and the transaction is set to close by the end of the 2020 fiscal year.
The Texas Alcoholic Beverage Commission has started to accept applications for permits that allow drivers to deliver alcohol directly to consumers' doors. Delivery drivers must complete TABC training requirements to be considered, and some permits may be issued as soon as next week, says Chris Porter, the commission's public information officer.
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