Trader Joes does not make any of their own products but has them made by others and puts their name on it. TJ's does not say who those suppliers are but more information has been coming out. They have an independent, family "non- commercial" store image even though they are privately owned by the same family which owns the largest number of grocery stores in Europe. Particularly when ConAgra purchased Ralcorp in 2012.
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It also makes it clear that the competition is on for the big brands. In fact, some private labels have been so innovative that the big brands are following their lead to replicate their successes. ConAgra was also a high-profile case in point when they bought out private label category leader National Pretzel Company last year—even though ConAgra already owned Rold Gold, the nation’s second highest selling pretzel brand in 2011, according to AIB International.
National Pretzel was “by far the biggest player on the private label side of the pretzel category,” say’s ConAgra’s Gary Rodkin in Baking Business. But ConAgra bought the company because of the technology they developed—“peanut butter filled pretzels, which you can find at a number of retailers like Trader Joe’s or Costco,” notes Rodkin.
The bottom line: ConAgra is now following the leaders—namely store brands offering this same product—and aiming to become a major player in this lucrative, retailer-controlled field. Future acquisitions are sure to follow, as ConAgra has set a goal of becoming “the fastest-growing private label business” within five years.http://www.wsj.com/articles/SB100014...44780022422000Ralcorp makes store-branded goods for Wal-Mart and Kroger, the two largest food retailers in the nation. They are also among the most influential to recognize the value of store brands. Great Value, the in-house label Wal-Mart launched in 1993, has been the single fastest-growing brand in the U.S. over the past five years, according the market research firm NPD Group. And Kroger has big plans to grow its store-branded lines after it finished its last fiscal year with strong sales thanks to these products, which outpaced CPG brands, notes Store Brands Decisions.
“Adding Ralcorp provides us with a much larger presence in the attractive and growing private label segment,” notes ConAgra’s Rodkin in the Wall St. Journal. It also gives ConAgra a bigger playing field. Besides Wal-Mart and Kroger, other grocery giants that have followed suit with house-managed labels include Safeway, Publix, Whole Foods and Costco, which all have actively experimenting, ever-expanding, and attractive store brands.
ConAgra Chief Executive Gary Rodkin said that while private-label foods may have slowed as a whole, growth is occurring in certain categories, such as snacks, and at retailers including Whole Foods Market Inc., Costco Wholesale Corp. and Trader Joe's, which devote extra attention to their store brands. Two of Ralcorp's key customers are Costco and Trader Joe's, Mr. Rodkin said.
"There's always some bumps in the road, if you will, but if you look at the long term, it's a pretty good growth rate," Mr. Rodkin said in an interview.
Mr. Rodkin also said he thinks the U.S. food industry will continue to migrate toward more private-label sales, much like in other developed countries. In Switzerland, for instance, 44% of food sales are in private label. "We're going to become more like that, rather than less like that," Mr. Rodkin predicts.
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