FOODTOWN TURNS FEISTY FORTY, DARES BRANDS ON PRICE, QUALITY

RUSSELL REDMAN

EDISON, N.J. -- Twin County Grocers here is going for the jugular of national brands in pushing its Foodtown grocery label.

In a recent circular, Twin County, the co-operative wholesaler of the Foodtown store group, issued "The Foodtown Challenge," in which it dared national brands to match the Foodtown brand. The ad guaranteed shoppers satisfaction with the store brand, offering a refund to anyone not satisfied.

The ad said, "Foodtown challenges the national brands to beat our quality and price. We guarantee you'll love our products and our price -- or your money back." Below that, in smaller print, it said, "And, our price is much lower than the national brands. So you get much more than savings. You get quality and value."

To commemorate the chain's 40th anniversary, the ad also listed numerous Foodtown and national brand groceries and frozen foods at 40% off or at 40 cents with a coupon. Prices were in effect April 30 to May 6.

Store-label groceries featured in the circular included cereal, peanut butter, jelly, spring water, frozen green beans and orange juice concentrate, spaghetti sauce and canned corn.

"The Foodtown Challenge," an ongoing program initiated April 30, represents a new, more aggressive approach in promoting the store brand, according to a Twin County official. Foodtown-label groceries have been upgraded in terms of quality and packaging, and the company aims to raise the brand's presence, the official said. More promotions of the store brand are expected, but no specific plans had been set.

Advertising that pits private labels against national brands is not new. However, two local observers said ads like "The Foodtown Challenge" forge a brand and store identity, encouraging shoppers to consider the house label when they walk the aisles.

"Why shouldn't it help?" one observer said of the Foodtown ad. "There's nothing stronger than a guaranteed product." Promoting the store brand makes customers more inclined to compare it to the national brand when they see the two labels next to each other on the shelf, he explained.

"Foodtown has very high quality standards as it relates to its private label," the other observer said. "Foodtown is trying to create awareness [of its label] by a comparison with branded items and get consumers to switch."

Shoppers equate house-brand items with the store, he added. "They're trying to build a consumer loyalty that forces the customer to come back to their store."

It's vital to establish a private label as the house brand, or customers may not recognize it as a low-cost alternative, he noted, citing the heavy promotion of America's Choice by A&P, which may be confusing customers.