KROGER CO. WILL UNLEASH PRIVATE-LABEL DRY DOG FOOD

RICHARD TURCSIK

CINCINNATI -- Kroger Co. here will debut a new private-label brand in superpremium dry dog food early next year, according to the manufacturer of the line.

The label -- NutriPlus TNP (Total Nutrition Program) -- is being launched in a bid to win back superpremium pet-food shoppers from pet-food specialty stores,

NutriPlus will be packed in 4- and 20-pound bags. Each package will bear the Kroger Quality Seal, although the Kroger logo will otherwise not appear on the package, said Marc Duke, chairman and chief executive officer of InnoPet Brands Corp., the Fort Lauderdale-based manufacturer of the line. The line marks InnoPet's first foray into the private-label business. Until now, the manufacturer provided superpremium pet food only under the InnoPet label.

Officials at Kroger declined to comment about NutriPlus TNP's introduction.

Duke said the line will initially include 14 stockkeeping units in beef, lamb and rice and chicken flavors, and will be available in "life stage" formulas for puppies, adult dogs and seniors. NutriPlus TNP will be introduced into each of Kroger's approximately 1,300 supermarkets during the first quarter.

NutriPlus TNP will be carried in addition to the InnoPet brand that Kroger currently stocks, Duke said, noting there are slight variations between the two brands, including the flavors and packaging. Both are similar in terms of nutritional value, he said.

The development of NutriPlus TNP came about because of the good relationship Kroger has with the InnoPet brand, Duke said.

"Kroger's NutriPlus TNP is a true premium food equivalent in nutrition to any premium food sold anywhere," Duke said.

"This is an extremely palatable and high-tasting product," he said.

NutriPlus TNP initially will be available only for dogs, although InnoPet expects to introduce cat and kitten formulas by the middle of next year, Duke said. There aren't any plans for canned versions.

While Kroger has a private-label pet-food line, it has not had a veterinarian formula until now, Duke said.

"This is a major thrust by Kroger toward attracting the superpremium buyers, who generally cannot find another superpremium pet food unless they go to a pet store," he added.

"We believe NutriPlus TNP will enable Kroger to recapture market share in the pet-food category that it, like many other supermarket chains, has lost to pet superstores over the last several years," he stated.

Chuck Cerankosky, a securities analyst with Tucker Anthony, Cleveland, who follows the chain, applauded Kroger's move to develop a proprietary superpremium pet-food line.

"It's all part of managing the entire private-label selection, and using market-segmentation strategies the national-brand companies use, but applying it to their private-label products," Cerankosky said.

"This makes a great deal of sense. The pet supercenters are trying to segment the market because they have the veterinarian brands that the other chains don't sell. This is a way for Kroger to play the same segmentation game, but by using a store brand," he added.

Duke said that while Kroger will decide how much the line will cost, he expects the price will be below current superpremium pet-store brands.

InnoPet will also be providing marketing support and consultation to Kroger, Duke added.

Duke said InnoPet is in discussions with "several other major chains" about developing other private-label lines. Other retailers stocking the InnoPet brand include A&P, Pathmark, Grand Union Co., Stop & Shop, Acme Markets and Weis Markets.