Progressive Grocer - November 2008 - (Page 36)

PRIVATE LABEL Critical mass With collective buying power that rivals the biggest grocers, Topco today looks like the right store-brand organization at the right time. By D. Gail Fleenor P rivate label programs are hot commodities in the current economic downturn. But a look inside the cupboards, refrigerators, and medicine cabinets of consumers in many markets across the country will turn up abundant evidence that Topco Associates, LLC is already on board the store-brand bandwagon. In fact, with more than 40 brands in its quiver, $8.8 billion in sales just last year, and aggregate buying clout of as much as $125 billion, Topco could stake a claim as one of the movement’s leaders at a critical time in private label’s evolution. “We believe that we are well along in making the transition from a quick follower to being more innovative and on the leading edge,” says Steve Lauer, president and c.e.o. of the Skokie, Ill.-based privately held company, which is the largest storebrand-buying group in North America, with 61 member-owners including supermarket operators, wholesalers, and foodservice distributors. Over the past year or so, it has seemed as if a new member were joining Topco every week. Probably most prominent among recent grocers to join the fold was Winn-Dixie. However, the cooperative has been ascending steadily over time, building up critical mass with both members and brands. “Topco has been growing at a fairly nice rate over the last six to seven years,” notes Lauer. While the company has increased its membership consistently, he says there are several other factors that contribute to Topco’s growth today. “We’ve expanded our offerings considerably, whether you measure that by number of brands, including new introductions like Full Circle and World Classics, or by SKUs. Within existing brands, we now have quite a few more SKUs.” Randy Skoda, e.v.p. at Topco, sees another reason for the coop’s continued progress. “I think a big part of our growth is due to effective aggregation, which is at the core of what Topco does: aggregating member volume. Retailers and wholesalers continue to look for ways to partner together and effectively compete against the large national chains. As those national chains continue to grow, the need for a Topco becomes more important.” At this point, Skoda sees the phenomenon hitting its stride. “As we get bigger from a volume perspective, it actually attracts www.progressivegrocer.com Popular private label brands offered by Topco Associates, LLC include TopCare, Food Club, Full Circle, and Shurfine . 36 • Progressive Grocer • November 2008 A H E A D O F W H AT ’ S N E X T http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - November 2008

Progressive Grocer - November 2008
Contents
Front End
Nielsen’s Shelf Stoppers/Spotlight
Market Snapshot
Lempert Report
Independents Report
Cover Story: Store of the Month
PG Industry Event
Private Label: What Economic Downturn?
Private Label: Critical Mass
2008 Category Captains Awards
Beverage Alcohol
Meat Snacks
Meat Trends
Produce
Holiday General Merchandise
Equipment Innovations

Progressive Grocer - November 2008

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