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Kroger Extends Private Label To Single-Serve Coffee

September 7, 2012
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In announcing the company’s second-quarter earnings Friday, Kroger President and Chief Operating Officer Rodney McMullen said the grocer would launch a line of Private Selection single-serve coffee pods beginning next week.

McMullen made the announcement as he reported Kroger’s private label unit share reached 33.5 percent in the grocery department in the second quarter, while private label dollar share in grocery was 26.3 percent.

“To complement the assortment of national brand single-serve coffee products we offer, beginning next week, we’re launching our new line of Private Selection single-serve coffee pods,” McMullen told analysts on a conference call, according to transcripts from Seeking Alpha. “The new line is compatible with Keurig coffee machines and will include a variety of 100 percent Arabica roasts and blends, including breakfast blend, Guatemala, Swiss Water, decaf and Venetian Reserve.”

McMullen said Kroger’s work on its corporate brands program continued to pay dividends for the company in the quarter.

“The mix between national brands and corporate brands fluctuates in any given quarter, but corporate brands continue to gain share over time,” he said. “We continue to offer our customers choices and variety and value to meet their needs.”

In particular, McMullen singled out one dairy category in its private label program.

“Yogurt is another popular and high-growth category with great potential,” he said. “Kroger self-manufactures most of our yogurt selection. We recently added 15 new varieties, including new flavors such as blueberry pomegranate, caramel spice cake, and vanilla bean. For toddlers, our new comfort yogurt bites are great and full of vitamins A, C and D. And I can tell you on the new yogurt flavors, they taste great, and I’ve tried over half of them already.”

Kroger reported same-store sales rose 3.6 percent in its second quarter, while profits remained flat at $279 million.

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