FOOD LION EXPANDS, UPGRADES BLOOM PRODUCT OFFERINGS

Mark Hamstra

CHARLOTTE, N.C. -- Bloom is moving even further from its Food Lion roots by expanding its upscale offerings and adding more prepared foods.

The experimental format, which Food Lion debuted in five locations here last year to appeal to time-pressed consumers, is significantly expanding its product selection throughout the store, especially in the perishables department, and rolling out its own private-label products.

In the meantime, Food Lion also has revamped its Boston Market prepared-foods program, replacing the restaurant company's hot rotisserie chicken and meatloaf products with Food Lion's own rotisserie chicken program in all 12 stores where the Boston Market hot products were offered. Those stores encompassed all five Bloom stores and seven traditional Food Lion supermarkets in the Charlotte area. Food Lion is retaining 14 Boston Market-brand refrigerated side dishes, desserts and other entrees in those 12 stores and in 63 other Food Lions in North Carolina where refrigerated Boston Market products are offered, representatives for Food Lion and Boston Market told SN last week.

"We can't argue with their rationale," said Phyllis Hammond, a spokeswoman for Golden, Colo.-based Boston Market, which is a wholly owned subsidiary of McDonald's Corp., Oak Brook, Ill. "We know the labor costs that are associated with offering rotisserie chicken. I think the labor was just higher than Food Lion thought."

Food Lion confirmed that labor costs were prohibitive.

"The Boston Market restaurant process was being replicated," said Jeff Lowrance, a spokesman for Food Lion, Salisbury, N.C. "That process works on a food-service/restaurant model, which requires a larger staff."

Initial sales results of the refrigerated Boston Market products have been strong, according to sources at Food Lion. The products, which are available in the grab-and-go section of Bloom stores called TableTop Circle, include meatballs in marinara sauce; Southwest-style chicken with rice; creamed spinach; mashed potatoes; macaroni and cheese; chocolate pudding and others.

Other additions to the TableTop Circle section of the Bloom stores include sushi, take-and-bake pizzas, fresh pastas and store-prepared salads and sandwiches.

"Our customers said they wanted more upscale offerings, and more specialty-type items," Lowrance said.

Bloom also has begun rolling out private-label items. The company recently added Bloom Inspirations fresh deli meats, and plans call for Bloom-brand milk to hit the shelves soon. Additional items will be rolled out throughout the store, Lowrance told SN.

New perishable products being rolled out to the five Bloom stores include more varieties of tomatoes, mushrooms and peppers; more herbs; more tropical, international and fresh-cut fruits; more varieties of bagged salads; natural pork and poultry; an expanded fresh-seafood offering; olive carts; and an expanded selection of cheeses. In the grocery section, new food products include more than 1,000 specialty items, such as olive oils, pasta sauces, marinades, mustards and salsas. Wine and beer selections also have been expanded.

Jon Hauptman, vice president, Willard Bishop Consulting, Barrington, Ill., said the move seems to be a reflection of the growing presence of alternative channels offering grocery products.

"They are looking for non-price ways to differentiate from these formats," he said, adding that these changes emphasize even further Bloom's differentiation. "It doesn't make sense to be a little bit differentiated. It makes sense to be a lot differentiated."