The Kroger Co.’s Simple Truth line of products is proving to be a success story. Launched in September 2012, the company said recently that sales have grown at an “astonishing pace.”
“Simple Truth continues to grow at an astonishing pace, and we now expect it to reach billion-dollar brand status by the end of fiscal year ’14,” says Mark Ellis, president and chief operating officer, during a March 6 conference call to discuss Kroger’s latest earnings release.
Ellis noted that Kroger added more than 100 items to the line during fiscal year 2013, ended Feb. 1, 2014. Both the Simple Truth and Simple Truth Organic lines of products have simple ingredient labels and the non-organic products are free-from 101 ingredients Kroger has identified as of concern to its customers.
All Simple Truth and Simple Truth Organic products are marked with the brand’s green circular logo and contain ingredient statements. Simple Truth Organic items display the USDA organic seal on the front of packaging, while Simple Truth products have visible identifiers that indicate their category.
Consumer demand for products perceived as “cleaner” or fresher also is having an impact on Kroger’s instore mix. During the conference call, Ellis noted the retailer is constantly evaluating space allocations for products and they are changing.