Profiles in Innovation: A&P's 'Green Way' to Sustainability (Part 3 of 4)

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September 22, 2009

By Maureen Azzato

Editor's Note: This is the third in an exclusive four-part series on A&P's revamped store brands' program. Part I, "A&P's Store Brands Transformation," focused on the grocer's overall strategy and plan. Last week's Part II, "A&P's High Hopes for Premium Store Brands," focused on Via Roma, Hartford Reserve and AC Gold. The final part of the series next week will spotlight the grocer's health care, beauty care and pet brands -- Live Better, Market Spa and Preferred Pet.

Green and clean was the name of the game as the A&P store brands' team developed the Green Way brand, which uniquely rolls up three segments into one line -- natural, organics and sustainable/earth-friendly products.

"Our research told us that the natural customer is the organic customer and vice versa, and it's also the same customer that is concerned about the environment." said Doug Palmer, vice president of own brands at A&P. "Green Way includes organics but also natural foods that may not be organic. Natural food is actually a bigger segment than organics."

Where possible, A&P adds sustainable features to the product and packaging, providing eco-friendly attributes, which are then called out on the packaging. "Where we could find landfill-friendly products and sustainable packaging structures we have asked suppliers to use them," Palmer said. "We're not where we want to be in some areas yet, but we are pushing suppliers to get there."

So far, the Green Way line -- which includes everything from food and beverages to household cleaners -- has approximately 150 items with another 60 on the way. Items are wide and varies and include cereal, crackers, sauces and dips, all-natural and unusual fruit juices such as quince, blood orange and tart cherry, as well as batteries, window cleaner and laundry detergent.

"The packaging is clean and white, and that speaks to the heart of the products that are free of a lot of unnatural, unneeded content," said Palmer. "Much like having Italian people and Italian things on Italian products [for Via Roma], we wanted this line of products to be 'green and clean."

The Green Way brand might look premium, but A&P is not positioning it that way. "We think of the Green Way brand as making organic, natural and earth-friendly products affordable and accessible to customers," Palmer said. "We priced Green Way to be at an everyday value."

"The way we developed this line allows us to expand on it easily because we are not locked into one attribute -- organic, natural or sustainable," Palmer said. "We've rolled it all under one umbrella." Palmer frequently refers to Green Way and Via Roma as brand blocks that visually pop off the shelf.

"There are two schools of thought out there on how to merchandise these products -- brand block or next to the national brand equivalent," said Palmer. "In some cases, store size is dictating how we merchandise these lines. When you see brands like Via Roma and Green Way merchandised as brand blocks, they are very powerful."

The product itself is the most important aspect of marketing the revitalized store brands, particularly the new Via Roma and Green Way lines. "The first place it starts is on the shelf. You have to win there first and everything else will follow," Palmer said.

Second only to the product is store-level employee training, he added. "We have to get our 50,000 associates to be sales people for the brands. Once they get passionate about your store brands that confidence and zeal spills over to your customers."

"If we communicate the value proposition of our brands, show customers the depth and breadth of the product, we think it will attain the success we expect," Palmer added.

With new lines, new package and label designs, A&P has created a lot of excitement and word-of-mouth marketing, "but we know we haven't touched the tip of the iceberg in terms of their potential," Palmer concluded.

Editor's Note: Profiles in Innovation: A&P Part IV, the conclusion of this exclusive series, next week will spotlight A&P's non-foods lines, including its health care, beauty care and pet brands -- Live Better, Market Spa and Preferred Pet.

Read These Related Articles:

• Profiles in Innovation: A&P's Store Brands Transformation (Part 1 of 4)
• Profiles in Innovation: A&P's High Hopes for Premium Store Brands (Part 2 of 4)
• Profiles in Innovation: A&P's Non-Foods Are Positioned to Explode (Part 4 of 4)
• Wal-Mart Exec Likens Great Value Brand to Coca-Cola, Tide and Cheerios
• A&P Adds Artisan Cheeses to its Hartford Reserve Store Brand Line

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