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Grocery Industry, Private Brands and its Evolution

Grocery Industry, Private Brands and its Evolution. Joe McKie, Vice President, Private Brands Food Marketing Institute. agenda. Provide a brief description of FMI Share FMI’s private brands efforts Give a high-level view of the evolution of our industry and private brands

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Grocery Industry, Private Brands and its Evolution

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  1. Grocery Industry, Private Brands and its Evolution • Joe McKie, Vice President, Private Brands • Food Marketing Institute

  2. agenda • Provide a brief description of FMI • Share FMI’s private brands efforts • Give a high-level view of the evolution of our industry and private brands • Demonstrate what’s next for private brands

  3. The Association $650billioncombined annual sales volume 330associate members that include retail supplier partners More than25,000retail foodstores Regional firms 260companies from more than 65countries Independentoperations Multi-store chains Nearly22,000pharmacies FMI Members Include… • FMI conducts programs in public affairs, food safety, research, education and industry relations on behalf of its nearly 1,250 food retail and wholesale member companies in the U.S. and around the world.

  4. FMI Serves as the Voice of Food Retail Industry Attractiveness and Awareness Information Services and Business Intelligence Industry Networking and Collaboration Communications Resources and Support Government RelationsAdvocacy Food Safety and Defense Industry and Consumer Research Private Brands Social, Environmental and Sustainability Advancement Educational Conferences and eLearning Platforms Health and Wellness Promotion FMIFoundation

  5. Total store collaboration Asset Protection Fresh Foods Private Brands Supply Chain Technology Engagement in the areas of loss prevention, risk management, workplace safety, crisis management, technology, and overall asset protection Emphasis on perishables and offer center-store assortments that differ from those of traditional retailers—especially in the areas of ethnic, natural and organic Global forum to exchange ideas and information on future trends, current techniques and best practices to strengthen the performance of the Private Brands industry Focus on logistics, transportation, distribution, warehousing, supply & demand planning, forecasting, purchasing and technology across the entire supply chain Approaches to mobility, payments, data security, cloud computing, in-store innovation and social commerce

  6. FMI Private brands group • Provides leadership and advocacy • Supports a global forum to exchange ideas – knowledge and education • Promotes collaboration on non-competitive industry issues • Acts as a platform, supporting strategic versus transactional collaboration between retailer brand owners, suppliers and trading partners

  7. Grocery industry and its evolution • The Evolution Private Brands • Of Terminology • Generic Private Label

  8. Grocery industry and its evolution 1995-2012 77% growth in capacity 38% growth in sales Source: Food Retailing 2013: Tomorrow's Trends Delivered Today

  9. Grocery industry and its evolution Source: U.S. Grocery Shopper Trends 2012

  10. Grocery industry and its evolution Source: Booz & Company 2013 Consumer Trends Survey; Booz & Company analysis; Nielsen analysis

  11. Grocery industry and its evolution likes and dislikes Wants and Wishes Private Brands can make and are making that connection… Tastes and distastes

  12. Growth and acceptance of private brands Sources: Nielsen/PLMA , GfK/Roper, Ralcorp, Supermarket News

  13. Trends and critical issues Process is Critical

  14. Fmi’s private brand resource • Contact me: 202-220-0719 • jmckie@fmi.org

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