Walmart launches biggest store brand in 20 years
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Walmart's new brand "better goods" is rolling out to stores. Photo: Courtesy of Walmart
Walmart is making a play for millennials who want oat milk, gluten-free products and hot honey with the launch of its largest store brand in 20 years.
Why it matters: Retailers are doubling down on budget-friendly store brands to drive sales.
- More Americans have been turning to store brands to save money as they continue to deal with sticker shock over high prices.
Driving the news: Walmart, the nation's largest retailer, announced its new "bettergoods" brand Tuesday with a focus on affordability and food trends. The first products in the line are starting to roll out to stores nationwide.
- The brand will have 300-plus products in its first year in categories including frozen, dairy, snacks, beverages, pasta, soups, coffee and chocolate.
- Axios found more than 20 bettergoods-branded items listed on Walmart's app and website with 14 pints of ice cream at $3.44 each, including seven plant-based oat milk ice cream flavors.
Zoom in: Prices range from under $2 to around $15 with more than 70% of products under $5, said Denise Wright, Walmart U.S. vice president of private brands food.
- Wright said products fall in three categories: trend-forward items, plant-based and "made without" which products made without artificial flavors, colors or added sugars.
What they're saying: Scott Morris, Walmart senior vice president of private brands, food and consumables, said the company's store brands have seen strong growth over the last few years between the pandemic and inflation.
- "As an industry we're seeing younger customers be more brand agnostic, prioritizing quality and value and driving increased interest in private brands," Morris said.
By the numbers: Private-label brand sales in the U.S. increased 6% year over year to $217 billion in 2023, according to a March report from Circana.
- Millennials and Gen X households with no children make up 36% of store-brand food and beverage sales, the report found.
- Households with children make up another 35% of sales, Circana said.
- Four Walmart private brands are among the top 10 consumer packaged food brands and consumables in the U.S., Morris said.
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