Q&A: Aldi's Scott Patton says 'deliberate decisions' keep meat prices low
VP of national buying reports beefed-up summer savings with grilling season now under way.
June 20, 2023
Discount grocer Aldi, which frequently opens multiple new stores per week, is looking to help shoppers fire up the grill this summer by cutting prices on over 250 items.
With the official start to summer kicking off on Wednesday and grilling season already under way, Aldi joins other retailers such as Walmart and Iowa-based Fareway who have recently beefed up their meat operations.
With shoppers opting for lower prices as summer heats up, Winsight Grocery Business caught up with Scott Patton, vice president of national buying at Batavia, Illinois-based Aldi U.S., to find out how the chain is delivering fresh, quality meat without added costs, as well as about other summer pricing strategies for cost-sensitive consumers.
WGB: Grocery shoppers have become weary with elevated food prices, and higher food prices are changing numerous shopper habits, including trading down. To what extent has Aldi seen this, and what is Aldi doing to be sure it can keep up with how shopping patterns change?
SCOTT PATTON: Shoppers don’t want to spend more on groceries than they have to, and they know they can rely on Aldi for the quality, fresh food and essentials they want and need at the lowest possible prices every day. No matter what’s going on in the economy, Aldi is uniquely positioned to keep costs low through the thousands of strategic, intentional decisions it makes across its business to champion value for customers, from displaying our products in the boxes they arrive in to our quarter-cart system. As part of this strategy, our strong supplier relationships allowed us to find new efficiencies and act quickly to create customer savings on hundreds of products this summer. In fact, Aldi recently dropped prices on more than 250 items to save Americans over $60 million, so grocery prices don’t get in the way of shoppers doing the things they love.
WGB: According to the “Power of Meat 2023” report from FMI-The Food Industry Association and the North American Meat Institute (NAMI), the meat category remains strong despite shoppers closely monitoring wallet spend. With the summer grilling season under way, how is Aldi keeping meat prices affordable in this category?
Photo courtesy of Aldi.
PATTON: Aldi customers know that when they shop our aisles, they will find an affordable, quality meat and seafood selection, including seasonal flavors and premium cuts. That’s because Aldi makes deliberate decisions every day to champion value for customers, cutting unnecessary costs like the butcher counter to keep meat prices low. Strategic choices like this allow Aldi to sell favorites like brats for 49% less than its competitors and offer 10 hamburger patties for $10.
WGB: Last month, Aldi announced it was cutting prices on over 250 items. How important was adding these offerings, and what message does this send to rival retailers in the grocery space regarding an oncoming price war?
PATTON: True to our strategy, Aldi is always looking for efficiencies that allow us to provide relief for customers as food prices remain stubbornly high. Offering price reductions on hundreds of items gives our customers access to fresh groceries and essentials, with unmatched value during a time when they need it most. Aldi is committed to helping customers save time and money on every trip.
WGB: Private-label products are filling up shoppers’ grocery carts as the economy continues to wane on the wallet. What are some other industry insights, including grocery and category sales trends, that are evolving from consumer preferences?
PATTON: Aldi pays attention to consumer trends, dietary needs and changing food preferences, so it can move quickly from concept to product, offering shoppers items they don't even know they need yet. The close relationship we have with our supplier network allows us to cut costs from our supply chain and pass on savings to our shoppers. We collaborate with them to continue exploring new product ideas and test some of our exciting innovations via Aldi Finds.
In short, we put significant time and effort into ensuring we carry an on-trend selection and have something for everyone in our stores. For example, over the past 18 months, more Aldi shoppers opted for dairy alternatives like plant-based milks, inspiring us to add a plant-based butter to our lineup this summer.
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