How Kroger built a $1 billion threat to Whole Foods in only 2 years
AP
In just two years, Simple Truth products reached $1 billion in annual sales, becoming a major threat to Whole Foods.
"Simple Truth has been our most successful brand launch ever, reaching billion-dollar brand status in less than two short years," said Mike Ellis, president and chief operating officer of Kroger, during a March 5 call with financial analysts.
"During the year, more than 20 million households bought one or more of our 2,688 Simple Truth or Simple Truth Organic items. The brand continues to earn double-digit unit and sales growth, which we don't see ending anytime soon," he said.
A study by the Organic Trade Associate shows that 78% of organic buyers say they typically shop at conventional food stores and supermarkets.
Whole Foods has been working to attract a wide audience by launching lower-priced stores in 2016.
Kroger is thriving in a difficult market for grocery stores.
The supermarket chain is expected to surpass Whole Foods Market within two years and become the nation's top seller of organic and natural food, according to a recent report by JPMorgan.
Kroger's strategy of offering more specialty and organic food is helping it overtake other chains despite an industry-wide trend away from supermarkets, JPMorgan analysts write.
Traditional supermarkets have been losing market share to high-end grocers, warehouse chains, and dollar stores because customers are seeking either specialty assortments or greatvalue, according to a recent report by the real estate investment firm JLL.
"Millennials and Boomers alike are focusing more on healthy eating choices and creatively prepared meals," the analysts write.
NOW WATCH: 14 things you didn't know about Whole Foods
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market