Great Britain’s largest grocer and Private Brand trendsetter Tesco has turned to its US arm for inspiration and is launching a new Private Brand of healthy food – “Goodness”. Launched last year at its El Segundo, California-based Fresh & Easy Neighborhood Market stores in the US, the home meal solutions and snacks have arrived in the UK as the retailer leverages a great idea from its struggling US banner.
The new Private Brand will go head to head with Asda’s Great Stuff Private Brand in the children’s food market. And rival Sainsbury’s is set to launch its Private Brand of food for kids under the Eric the Elephant label later this year as the supermarkets square up for another food fight.
Tesco is planning to launch more than 70 items in the Goodness line. First on the shelves are its Cottage Pie and Four Creamy Yogurts for £1. Additional items ranging from pasta and smoothies to cakes and raisins will begin to appear on shelves over the summer with the full range up and running by the end of the school holidays.
With all products tested by a panel of children and tastes adapted for English tastes, Tesco is confident it has a recipe for success.
If Tesco is able to utilize Fresh & Easy as a incubator and test market for Private Brand and retail innovation they have the potential of creating a competitive advantage that has value above and beyond the sales and margin of the stores. And ironically it puts a prominent English retailer looking back across the pond for innovation.
According to a post by the blog, “Fresh & Easy Buzz”:
“Bryan Roberts, director of retail insights for Kantar Retail EMEA in the UK, did a store check today for Fresh & Easy Buzz and his firm and spotted some of the bagged “Tesco goodness for kids” value-added produce items, which have replaced similar “Disney” brand items, in a Tesco store in London.
Additionally, look for Tesco to introduce other items in other categories, such as shelf-stable fruit drinks and various packaged food items, under the “goodness for kids” brand, which was created by the new product development and category management teams at Fresh & Easy Neighborhood Market in Southern California.”