The Private Eye
March 12, 2010
AHA Updates Heart-Check Mark
The American Heart Association (AHA) announced an update to its widely recognized heart-check mark to enhance the mark’s communication value. The move was based, in part, on a consumer survey in which one-third of surveyed consumers saw an opportunity to enhance the existing heart-check mark.
“Previous consumer research found that the heart-check mark symbol has a 73 percent unaided and an 83 percent aided awareness,” said Kimberly F. Stitzel, M.S., R.D., director, nutrition and obesity for the Dallas-based association. “However, while shoppers know and trust the mark, communications testing to see if shoppers understood what the mark exactly means resulted in the American Heart Association’s effort to enhance the mark for additional clarity.”
Stitzel says AHA now has four categories of certification covered by three different heart-check marks. The Standard certification mark represents both the Standard (non-meat products) and the Whole Oats Soluble Fiber certification categories, while the Whole Grain mark is used for the Whole Grain certification category. And for Standard certification of meat and seafood products, AHA now offers the Extra Lean heart-check mark.
Inclusion of the heart-check mark on products, shelf tags and/or at the checkout can be a powerful sales tool for private label products that meet certification criteria, AHA has found.
In September and October of 2009, AHA began a consumer research program with Little Rock, Ark.-based Vestcom at select grocery retailers, appending the heart-check mark logo to shelf tags of products that meet AHA’s certification criteria. AHA said it also ran a messaging program directed to the “heart health” defined segments of St. Petersburg, Fla.-based Catalina Marketing USA.
From the combined research, AHA learned that consumer awareness of the heart-check mark was high, with 79 percent of surveyed consumers saying they know what the mark means. Moreover, AHA said the sales data indicated an average 5 percent incremental sales lift per store when heart-check mark-certified products were flagged through in-store promotions.
“Additional consumer research during this campaign revealed that the heart-check mark has a powerful influence on purchase intent,” Stitzel said, “with 75 percent of consumers saying they are likely to buy a product displaying the heart-check mark. Overall, our test found that each store sold more than $1 million in additional products.”
Retailers or suppliers that would like to learn more about including the heart-check mark on specific store brand products are encouraged to review AHA’s nutritional criteria at www.heartcheckmark.org (click on “nutritional criteria”). They then may contact April Whitfield at 214-706-1654 or april.whitfield@heart.org to discuss specific products and their certification eligibility and to begin the application process.
“For private label/store brands, we may work directly with the retailer or with the retailer’s supplier,” Stitzel said. “It all depends on the key decision-maker and how the store brands are managed.” — K. Canning
Don’t Miss ECRM’s Private Brand Foods Event
Private label foods are riding a phenomenal growth wave — and are becoming increasingly important tools for retailer differentiation. Retailers and suppliers that plan carefully in terms of new items, promotions and marketing initiatives are sure to get more than their share of the growing private label pie in the year to come.
And ECRM, a Solon, Ohio-based provider of business solutions (integrating process, vision and technology) certainly can help here through its annual Private Brand Foods Efficient Program Planning Session (EPPS). Slated for April 11 through April 14 at the Hyatt Regency Grand Cypress in Orlando, the event will feature scheduled 20-minute one-on-one planning sessions — in private meeting rooms — between private label suppliers and key retail grocery decision-makers.
Also planned for this year’s event is a Power Hall within a large ballroom, with a private area for each manufacturer to set up displays and materials. ECRM said Power Hall supplier presentations will be scheduled in 10-minute appointments. An economical Expo Hall with 10-foot by 10-foot booths also will be available, ECRM said, but this format will not include prescheduled meetings.
“The ECRM Private Brands Foods Efficient Program Planning Session will enable manufacturers to meet with the decision-makers for their categories from over 40 retailers across multiple classes of trade,” said Ed Reilly, vice president of grocery for ECRM. “Retailers will have the opportunity to meet with an equal number of private label manufacturers and suppliers covering core center store consumables categories, including grocery, dairy, frozen, beverage and snacks.”
Reilly noted that all attendees will be provided with a laptop computer loaded with ECRM’s MarketGate Mobile software.
“This powerful application streamlines the scheduling of appointments; facilitates preparation, presentation and review of programs; transfers supplier product data electronically to retailer forms; and provides efficient follow-up and execution of programs,” he said.
In addition, ECRM announced a partnership with Stamford, Conn.-based Daymon Worldwide to a conduct a Global Forum during the event. The forum will cover hot industry topics, innovation in product and packaging, turnkey solutions, best-in-class merchandising and more.
Also on the agenda is a presentation from The Nielsen Co., New York, on private label trends, Reilly said. And PL Buyer and ECRM will host a retailer roundtable discussion on April 11 that ponders: “Taking private label to the next level: Where do we go from here?” Portions of the discussion will be featured in an upcoming issue of PL Buyer.
Reilly said the event comes at a critical time for retailers’ private label food programs.
“Private brand foods have always seen growth in past economic downturns, but the unique aspect to our current situation is that consumers are making long-term changes to their buying patterns,” he said. “The Private Brand Foods EPPS will give both retailers and manufacturers the chance to discuss, review and decide on the private brand food products, promotions and initiative that will capture those consumers for years to come.”
For more information or to register, visit www.ECRM.MarketGate.com and click on EPPS events. Or contact Reilly at 508-533-3725 or ereilly@marketgate.com. — K. Canning
Daymon Names Miller CEO
Daymon Worldwide — a Stamford, Conn.-based company that specializes in the sales and marketing of private brand consumer products and consumer marketing events — said its board of directors unanimously appointed Alex Miller, a 30-year Daymon veteran, as CEO. He previously served as Daymon’s president and chief operating officer.
Miller is the first new Daymon CEO since the company was founded 40 years ago. Milt Sender and Peter Schwartz founded Daymon in 1970, serving as co-chairmen and co-CEOs until Schwartz’s death in 1994, at which time Sender assumed the roles of chairman and CEO.
“This is an important transition in our history, and the start of our next 40 years,” Sender said. “It’s particularly fulfilling to see this position transition to Alex, who I’ve worked with for 30 years. I see this as a tremendously exciting time for our company.”
Daymon also announced the appointment of James White, president and CEO of Emeryville, Calif.-based Jamba Inc. (owner of the Jamba Juice Co.), to its board of directors. Prior to joining Jamba as president and CEO in 2008, White served as senior vice president of Consumer Brands at Safeway Inc., Pleasanton, Calif. PLB
Rite Aid Expands Rx Suncare Line
Camp Hill, Pa.-based Rite Aid Corp. said it will expand its exclusive Rx Suncare line with two new products — Rx Suncare Sport SPF 70 and Rx Suncare HairGuard. The retailer said all of its Rx Suncare products are priced under $10 and offer the same protection against the sun as national and specialty brands.
Rite Aid Rx Suncare products with a sun protection factor (SPF) carry The Skin Cancer Foundation’s Seal of Recommendation as an effective UV sunscreen. All items are fragrance-free and non-comedogenic, Rite Aid said. They provide stabilized broad spectrum protection and are supplemented by antioxidant/anti-aging vitamins.
The new Rx Suncare products were available in Rite Aid stores in California, Colorado, Idaho, Nevada, Oregon and Washington in February and will be in stores throughout the rest of the chain in April, Rite Aid said. The products also will be added to Rite Aid’s online store at www.riteaid.com in April.
Rx Suncare Sport SPF 70 is highly water- and sweat-resistant, and the 70 SPF gives consumers better protection for a longer period of time, Rite Aid said. The retailer’s Rx Suncare HairGuard is a color saver and contains a unique heat-activated conditioner, providing shine with leave-in conditioners and light reflective micro particles. Equivalent to an SPF 20 on skin, it protects chemically processed hair (color, perms, straightening) from damage caused by UV exposure.
“Customer response to the new Rx Suncare line exceeded our expectations in 2009 and led to our introduction of two items requested by our customers — a higher SPF sport product and a hair protection product,” said Bryan Shirtliff, Rite Aid senior vice president, category management. “Rite Aid again is very happy to be working with The Skin Cancer Foundation to educate and raise awareness about the risks and proper prevention of skin cancer from UV rays.” PLB
JTM Foods Increases Manufacturing Capabilities
JTM Foods, an Erie, Pa.-based manufacturer of single-serve snack pies and marshmallow crispy treats for private label and under the JJ’s national brand, announced several technological advances to its production facility.
According to Rachel McFeely, general manager at JTM, the company expanded automation on the packing end of its pie production line in 2009.
“We went from hand-packing master cases to automated,” McFeely told PL Buyer. “We also automated our cook process; we can cook in about half the time.”
By expanding automation, McFeely noted, JTM increased its pie-production capabilities by 10 percent.
Beverly Braley, vice president of JTM, added that the increase in automation allows JTM to keep its costs competitive.
“It has kept us from having to raise our prices during a time when everything was already hurting,” she said. “Through automation, we were able to cut the cost of our labor [and] make more units per hour. That has kept us pretty stable through this [recession] — we haven’t had to go in and totally increase prices on our customers.”
Braley said when the company expands automation on one part of a production line, it moves that section’s workers to a non-automated line segment. Many of JTM’s employees are cross-trained, McFeely added, enabling them to work in multiple positions on the plant floor.
JTM also is looking into adding a new production line. Braley said the new line would fill an empty space that formerly housed equipment for manufacturing cupcakes. JTM eliminated its cupcake-manufacturing line a few years ago so it could focus solely on producing its pies and marshmallow crispy treats.
She added that JTM hopes to have a new line installed sometime around August 2011, just in time for the back-to-school season. JTM, however, still is deciding on what items the line would produce. — R. Hofbauer
Sam’s Club, Dragon Rouge Collaborate on Vodka Brand Design
Bentonville, Ark.-based Sam’s Club said it recently teamed up with international brand and design consultancy, Dragon Rouge, to create a design for an ultrapremium private label French distilled vodka. Rue 33 vodka, which made its debut at 241 Sam’s Club locations, is the first spirit to be launched under the Member’s Mark private brand.
Sam’s Club described the product as “a refined wheat vodka from the Cognac region of France,” produced by the renowned Louis Royer and imported by Shaw Ross. The vodka — which is distilled six times and filtered three times — is made with only select premium wheat and spring water from France’s prestigious underground sources to yield small proprietary batches for Sam’s Club.
Marcus Hewitt, chief creative officer at Dragon Rouge’s North American division (based in New York), said he believes the brand communicates two important things: the vodka’s ultrapremium quality and its French origin.
“Inspired by the idea of premier Grand Cru — the highest category classification for French wine — we wanted to convey the finest ultra-premium spirit cultivated by French excellence and standards to deliver superior product quality,” he told PL Buyer.
Dragon Rouge started off by creating a unique name, one that is easy to remember and communicates the vodka’s French origin: Rue 33.
To design a unique bottle, Dragon Rouge decided to use recognizable visual cues from the premium vodka category (a frosted background and see-through effect) and the wine category (an image of poplar trees, which are a traditional icon used by wine estates). Hewitt said this unique combination of cues gives the bottle a “Gallic sensibility” and helps differentiate Rue 33 within an “extremely competitive arena.”
To bring all the visuals together, Dragon Rouge printed a blue circle on the back of the bottle.
“As you pick up the bottle,” Hewitt explained, “the blue area moves, which brings the bottle to life.”
When seen from the front, the circle gives a cool blue glow that surrounds the trees and combines with the red Rue 33 text and the white highlights on the poplars. Hewitt said this effect displays France’s national colors and reinforces the vodka’s French heritage.
Sure, it would have been easier to communicate the product’s premium quality and French heritage by printing the entire product story on the bottle, like several brands do. However, Hewitt believes too many brands spin stories that stretch the truth.
On the Rue 33 bottle, two simple phrases describe the premium spirit: “Imported French Vodka” and “Six times distilled from carefully selected premium wheat.” The graphics explain the rest.
“Simply put,” Hewitt said, “this vodka comes from France, a country that has a reputation for gourmet foods and refined spirits.” — R. Hofbauer
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