Kroger is on the hunt for more private-label products

Kroger, which last month credited private brands for giving it a big second quarter boost, is on the hunt for more private-label items, the retailer announced Monday.

The Cincinnati-based grocer is holding its first Our Brands Innovation Summit to expand its offerings of food and beverage, health and beauty, packaging and more.

Through the end of the month, suppliers in all categories (except for general merchandise, hard goods, textiles and apparel) can apply to participate in virtual meetings with Kroger buyers to be held in January.

“At Kroger, we’re constantly innovating, studying customer data and working to stay ahead of trends so we can provide customers with the highest-quality products they’re looking for at affordable prices,” Kroger’s private brands VP Juan de Paoli said in a statement. “By inviting private brand suppliers to apply for this opportunity, we’re confident we will find fresh ideas and innovative products to expand our portfolio of offerings and support the growth of new businesses we bring into our supplier network.”

Last month, Kroger reported a 10.2% increase in sales of its private-label products for the quarter ended Aug. 13, a big reason for the retailer’s 5.8% increase in same-store sales during the period, it said. Seeing that success, the grocer launched Smart Way—a new opening price point for its Our Brands private-label line that includes brands such as Simple Truth, Private Selection, Home Chef and Heritage Farm.

De Paoli, in a statement at the time, said he was confident shoppers would find value in Smart Way.

“From canned vegetables and bread, to juices and staples, this new product line features the products families need to put an even more affordable meal on their table,” he said.

With food prices soaring, private-label brands have taken a starring role on many grocers’ shelves in recent months.

Research released late last month by FMI-The Food Industry Association found that 83% of grocers surveyed said they plan to moderately or significantly increase their investments in private brands in coming years. And retailers said they hope to increase the penetration of private brands in their stores from 18.2% to 22.6% over the next two years, an increase from previous FMI research.

Kroger operates nearly 2,800 stores under 28 banners in 35 states.