Categories
Food Lion Hannaford

Delhaize Reorganizes, Closes Stores, Cuts Private Brand VP

\"MyYesterday, Delhaize America announced that their Florida based banner former Kash n’ Karry, Sweetbay Supermarket will close 33 \”underperforming\” grocery stores from its total fleet of 105 stores in Florida – all of them closing by mid February. The closures will mean layoffs for about 2,000 employees in Florida and changes for customers of the pharmacies at those stores.

The last few years have been a time of dramatic change and evolution for my former employer Delhaize America and its banners Food Lion, Hannaford, Sweetbay Supermarket, Bottom Dollar Foods, Harvey’s and Reid’s and Bloom. Reorganization, repositioning, store closings and layoffs have been regular occurrences including the shuttering of the once heralded banner Bloom.

This past week fifteen Delhaize America executives were let go in a leadership shake-up that started last month with the replacement of Food Lion President Cathy Green Burns. Delhaize America Chief Executive Roland Smith appointed Beth Newlands Campbell, former president of Hannaford Supermarkets to replace Burns as president of both Food Lion and Harvey’s.

Roland Smith was appointed President and Chief Executive Officer of Delhaize America and Executive Vice President of Delhaize Group, effective October 15, 2012. Mr. Smith came to the position with no grocery experience from his role as President and CEO of The Wendy’s Company.

Delhaize America cut 25% of high-level leadership positions and internally unveiled a new structure that includes 50 officers.

Most significant to My Private Brand readers is the departure of Kristen Hanson, Vice President Our (Private) Brands, Delhaize America, this follows the exit earlier this year of Nancy Dumais the longtime Director of Branding & Design (Nancy was not part of the layoffs and left to pursue other opportunities). The departure of these two key Private Brand leaders are sure to spell continued change and evolution for the Delhaize Private Brand portfolio which most recently launched the consolidating and somewhat generic private label “My Essentials”

According to an internal Delhaize email obtained by the Salisbury, NC daily newspaper the Salisbury Post:

“Developing the new officer structure required a great number of difficult decisions that led to the departure of many longtime, well-respected leaders,” new Delhaize America CEO Roland Smith said in the email.

With these changes in place, about 80% of Delhaize America officers will be located in Salisbury. Smith has moved the Delhaize America CEO office back to Salisbury. His predecessor, Ron Hodge, was based in Scarborough, Maine.

Food Lion, which makes up the majority of Delhaize, has struggled, closing 113 underperforming stores and pulling out of Florida.

Vice presidents who lost their jobs include:

  • Kyle Price, produce merchandising
  • Pete Bonneau, center store merchandising, Delhaize America
  • Mike Brooks, strategy, Delhaize America
  • Jim Corby, produce merchandising, Delhaize America
  • Steve Culver, government relations – northeast, Delhaize America
  • Kristen Hanson, Our Brands, Delhaize America
  • Mike Harris, risk management, Delhaize America
  • Lisa Miller, sustainability, Delhaize America
  • Lisa Toner, legal affairs, Delhaize America

The following vice presidents will leave the company in mid-March:

  • Shawn Beichler, real estate, Delhaize America
  • Steve Campbell, organizational development, learning and internal brand and communication, Delhaize America
  • Bonnie Moore, associate relations
  • Eric Watson, diversity and inclusion, Delhaize America

 

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Categories
Hannaford

Hannaford Rewards Private Brand Customers

\"\"Scarborough, Maine based Delhaize owned grocer Hannaford has launched its annual “Buy & Save” Private Brand campaign. I have reported on this promotion several times at both Hannaford and their sister banner Food Lion.
Customers will receive a $1 coupon for every Hannaford and “My Essentials” brand product they buy in the same transaction. The promotion runs October 23rd through November 12th. The coupon can be used on the next shopping trip. The maximum reward is $10 per transaction.
My Essentials was launched by Delhaize earlier ths year and is rapidly shaping up to be the multi-banner National Brand Equivalent solution that dramatically consolidates the Delhaize portfolio including much of the Smart Options, Hananford, Food Lion and Harveys Private Brand packaged goods. It remains to be seen how far the consolidation efforts will go.

Categories
Hannaford

The Reaction to My Essentials in Maine.

\"\"Over the last few years retailer and national brands alike have seen commentary and occasional backlash from customers as a result of brand redesigns, (Tropicana & Gap) brand consolidation and Private Brand portfolio optimization. Walmart is most commonly quoted as the example here, however I can’t help but wonder whether the backlash was to the over extension of Private Brand or to the over extension of the redesigned stark and sometimes overbearing Great Value. Read the comments below any of my posts about Walmart’s World Table and it is easy to see that Walmart customers react positively and passionately when given a quality, relevant and engaging Private Brand with products that live up to their positioning. The brand moves beyond the me too of Great Value and presents a unique option for Walmart customers.

So I suppose it should be no surprise that the reaction to the introduction of “My Essentials” by Delhaize and its US banners is meeting some less than positive reaction by loyal Private Brand shoppers. Take a look at this opinion piece from the  daily newspaper in Portland, Maine, the Portland Daily Sun written by a rather unlikely source, the circulation manager, Jeffrey S. Spofford.

I do however wonder whether Mr. Spofford’s reaction is a result of his loyalty to the Hannaford Private Brand or simply a reaction to the white design and generic naming and it’s similarity to Walmart’s Great Value. He writes:

“It (My Essentials) was cheap-looking. The font describing the product, the picture of the beans and the white background looked as though they had been focus-grouped down in some white-walled room in Arkansas. One could literally cut out a “Great Value” label from a Wal-Mart can, paste it over My Essentials and not tell the difference.”

Mr Spofford even seems to understand some of the higher level business goals of Private Brand portfolio management, optimization and consolidation:

“From a global corporate governance standpoint, the change makes sense. Delhaize will save money by only having to produce one product for all their stores. They even insist that having one brand will enable them to better leverage themselves when purchasing from suppliers. And, the increased sales they expect will certainly reap benefits for investors.”

The unspoken challenge for all retailers is to create brands that engage customers and build relationships of trust and passion. If you want your customers to love you and your brands give them something to love and remember. Use every tool at your disposal relevant consumer based brand positioning, brand personality, a differentiated – memorable and compelling name and of course a great package design and logo, etc. to create a great brand that can move beyond margin enhancement and create a true corporate asset.

Scuttling the Hannaford brand is ‘essentially’ hard to swallow

Three weeks ago my wife, son and I were enjoying dinner at a friend’s home when I noticed the latest addition to their mustard collection. My friend Drew is somewhat of a mustard connoisseur. We both believe that our mustards need to be hot — very hot. Hot enough to require the assistance of the fire department-hot. We discussed different mustard brand names when the conversation turned into a discussion of different brand names in general. Then, Drew turned to me and said “What I really don’t like is how Hannaford has replaced their Hannaford brand with something called My Essentials.”

This was news to me. I usually go grocery shopping once every two weeks. I told him that I hadn’t seen the My Essentials cans on the shelves at my Forest Ave. Hannaford and supposed that he was mistaken and the My Essentials was just an additional brand brought into the store. I couldn’t imagine that Hannaford Brothers would scuttle a long-known brand that to a lot of Mainers is considered a “name brand,” as opposed to a cheap-looking “store brand” like, say, Wal-mart’s “Great Value.”

Come to find out, Drew was right.

I was at the Forest Ave. Hannaford last Saturday morning doing my “grocery thang.” I navigated through the veggies, grabbed a couple things from the deli and rounded aisle four to grab a couple cans of Hannaford French-Style Green Beans. I looked down to the middle row where before me was a sea of canned green beans and couldn’t find it. Focusing harder, there it was. The My Essentials French Style Green Beans stacked oh so neatly with a little one inch by one inch sticker that confirmed Drew’s story. The sign read, printed in a super-small 6-point font, “This My Essentials product has replaced the Hannaford Brand.”

I picked up a can and gave it a gander. It was cheap-looking. The font describing the product, the picture of the beans and the white background looked as though they had been focus-grouped down in some white-walled room in Arkansas. One could literally cut out a “Great Value” label from a Wal-Mart can, paste it over My Essentials and not tell the difference. I put the can down, picked up a can of Green Giant, and continued shopping. As I did, I noticed the slow rotation that was gradually replacing most of the Hannaford products I had been used to buying for so many years. It was awful.

After I left the store, knowing full well that more than likely the products were the same contents with just a different label, I asked myself whether this brand change was something that was bothering just me and Drew, as we’re both a little quirky. I certainly hadn’t seen anything in the news about the change and it seems as though Hannaford is trying to quietly extinguish the Hannaford brand in the stores. After a little search, I found out we were not alone.

Read the entire article.

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Categories
Bloom Bottom Dollar Food Lion Hannaford

Delhaize Redesigns Healthy Accents

 

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As part of its ever evolving Private Brand portfolio Delhaize and it US banners: Food Lion, Bloom, Bottom Dollar, Harveys, Reid’s, Sweetbay and Hannaford have begun to introduce a redesign of their HBC Private brand Healthy Accents. The new design continues the white theme that they began with their recently launched basic brand My Essentials. I was never a fan of the old design, which felt a bit dated and clunky even when it was originally created, so it is nice to see a refreshed brand begin to appear.

 

With this second white-based Private Brand the challenge for Delhaize will be avoiding the stark generic whiteness that took over the aisle of Walmart after the Great Value redesign.

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Categories
Bloom Bottom Dollar Food Lion Hannaford Sweetbay Supermarkets

A Closer Look at \”My Essentials\” from Delhaize\’s American Banners

\"\"Here is a closer look “My Essentials” at the recently announced new value brand from the Delhaize owned family of grocers: Hannaford, Food Lion, Bloom, Bottom Dollar, Sweetbay, Harveys and Reid’s. The photo’s come from several visits to local Food Lion and Bloom stores. The new brand can clearly trace its design lineage and naming to the value-based white private labels that are now dominated by Walmart’s Great Value.

It will be interesting to see what happens to the Delhaize portfolio of Private Brands as the go through their current portfolio reinvention.

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