Gluten Free Private Label Alternatives Encroach

By | January 13, 2016

An increasing number of retailers are ramping up their gluten free private label initiatives in an effort to grab a piece of the high-growth gluten free market. Gluten free store brands offer shoppers a much needed value alternative to pricey name brand equivalents and items historically only available at specialty retailers.

Gluten Free Private Label Example:

Aldi liveGfree gluten free private label endcap displayAldi’s liveGfree introduction could be considered the past year’s biggest success story in the gluten-free private brand space. Limited assortment grocer Aldi made a made a huge splash in late 2014 when its line of gluten-free goods began trickling into stores.

The liveGfree assortment includes boxed baking mixes (e.g., cakes, cookies and pizza crust mixes), gluten free pastas, and a host of frozen foods, which range from breaded chicken nuggets and ravioli to pizza and pancakes.

New stores and recent remodels merchandise most liveGfree pantry items on a featured endcap. Other items can be found in the freezer cases.

Watch future posts for more on gluten free private label examples.

Key Takeaways:

  • Gluten-free brand marketers must protect their turf as some of the nation’s top retailers not only ramp up gluten-free offerings but also add and expand gluten-free store brand alternatives.
  • The favorable price/value proposition associated with private label goods compared with name brand equivalents (NBE) could be enough to entice consumers not only to trial gluten-free store brands but perhaps make a more permanent switch.
  • Some retailers, including Aldi, are increasingly labeling everyday items as “naturally gluten free” or clearly featuring the “gluten free” label on product packaging, making it easy for consumers to identify items that meet their dietary requirements.
  • Expect more retailers and brand marketers to follow suit on labeling and transparency issues. But first they must carefully weigh the cost/benefit relationship associated with a labeling and packaging redesign vs. creating an easy and possibly more compelling shopping experience.

Full report (PDF) available here: GLUTEN FREE Retail Intelligence, January 2016