Aldi is stamping its name on all of its private label products for the first time.
The grocer this week announced a packaging refresh across its portfolio that unites its private label offerings—which make up 90% of its merchandise—under “Aldi” or “an Aldi Original” branding, consolidating its brands from 90 to 26. The new packaging has begun to hit store shelves and will continue to roll out to every product in the next few years, the company said.
The retailer has historically marketed its private label products under brand names that didn’t bear the Aldi name. Smaller brands like frozen line Belmont, canned bean line Dakota’s Pride, and baking staples Baker’s Corner, will be discontinued, the company said, while more popular ones like snack brand Clancy’s, organic pantry staple brand Simply Nature, premium line Specially Selected, deli brand Park Street Deli, and sweets line Sundae Shoppe will continue under “an Aldi original” branding. The retailer joins those like CVS in consolidating and updating its private label branding.
The refresh comes after the company was sued by Mondelez earlier this year over product packaging that the CPG giant claimed “blatantly copies” that of several of its brands like Oreos and Wheat Thins. When reached by Retail Brew, Aldi said the company couldn’t comment on current litigation but that it’s been working on the rebrand for years.
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It’s also an early move under Aldi’s new leadership; Atty McGrath took over as US CEO on September 1, moving up from her COO role as former leader Jason Hart shifts to Aldi South’s executive board as group COO. McGrath said in a statement that the new look was an effort “to modernize our simpler, quicker shopping experience” and “give shoppers yet another reason to reach for our products first.”
Last year, Aldi was the leader in terms of private label sales as a percentage of overall sales, at 80%, according to Numerator data. This year, it slid down slightly to 77%, putting it in second place behind Trader Joe’s at 78%, while its private label household penetration remained at 45%. Its brands Fremont Fish Market, Southern Grove, Park Street Deli, and Choceur were among the fastest-growing private label brands.
Aldi’s affordable private label offerings have also been driving up its foot traffic, Retail Brew previously reported. The grocer’s foot traffic grew 7.1% in the first half of the year, outpacing total grocery’s 1.5% growth, per Placer.ai.