Minneapolis-based distributor Nash Finch has introduced a program that is focused on increasing it’s customers’ price-competitiveness by converting them to Nash Finch distributed Private Brands — and perhaps more importantly removing their competitors. The brands include: Our Family, Value Choice and Nash Brothers Trading Co.
According to Supermarket News: Retailers that agree to participate in the program, which launched last month, will get more competitive pricing on the items if they add them while also removing competing items — mostly regional packer brands — from the shelves, Alec Covington, Nash Finch’s chief executive officer, said last week. Covington’s remarks came during a conference call discussing financial results for the first quarter ended March 24.
“The goal is that both our customers and ourselves can drive our business forward faster in building our private label business, which is critically important to our customers in terms of creating the pricing pressure they need to have within their overall marketplace,” Covington said.
Covington said about 90% of Nash Finch’s 1,500 customers have already agreed to sign up for the program, which already has added 10,000 product placements in stores and is boosting Private Brand sales penetration.
“This is going to be a big one for us,” Covington said. “We see a great opportunity to build this program, help our margins, and help our customers compete more effectively in the marketplace.”