Growth in private label rice

2/14/2013

We have been working on a few private label rice product bids for some grocery chains recently.
What’s interesting about private brand rice is that it should grow more than category growth, if done properly through the right product variety, quality choices, size, pricing and most importantly, accountable quality.

One chain’s private label rice share has decreased three years, but is showing double-digit growth with mostly repeat sales since we began supplying them in November 2011. We not only protect their brand, we help to grow their brand.

Here are some ways to increase sales of private-label rice in your store:

Ethnic marketing: for ethnic customers and mainstream customers who want authentic ethnic food. Pay attention to store-specific ethnic group needs. Learn about their festivals, rice varieties, and quality needs. For example, stores should carry Australian long grain rice and non-sticky jasmine rice for customers from Hong Kong.

For the customers from mainland China, stores should carry two types of medium grain rice with different qualities and prices, and a jasmine rice with a stickier texture.

Gluten-free shelf talkers and flyer highlights: All rice is gluten-free, even the glutinous rice. Be careful about blended rice products containing other grains, or processed in a plant contaminated with gluten.

Cross merchandise: for higher basket dollars. Rice goes with anything, and yes, even chocolate. Build meal suggestions with produce, meat, seafood, sauces, and spices.

Choose accountable suppliers for products and knowledge: rice knowledge, market information (particularly pricing), consumers’ needs, merchandising and cross merchandising ideas, etc.

Rice is like potato and pasta: you usually only noticed them when they don’t taste good in your mouth. Consumers are more sophisticated now and often know more about the quality then the buyers. They want value, not just low prices.

Remember, one substandard package of rice can totally destroy that customer’s trust of your brand on all products using the same brand name and logo.

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