MONROE, Mich. — Quality Food Brands Inc., a subsidiary of Synergy Brands Inc., has received what it called a "substantial order" for several of its grocery products from Rite Aid Corp.
The private-label grocery supplier said Wednesday that Rite Aid has placed an initial order for five of its proprietary items that are expected to be displayed in the grocery area of the drug chain’s stores. The products are currently being shipped to Rite Aid warehouses.
"We are confident that these products will enjoy excellent sales movement," Mair Faibish, chief executive officer of Synergy Brands, said in a statement. "Quality Food Brands Inc. has a strong expectation that this is the beginning of a good relationship with one of the leading drug retailers in the United States."
Quality Food Brands is a manufacturer and co-packer of private-label and store-brand products under its own proprietary labels, including Loretta, Gourmet Select, County Fare, Country Value and Palm. The company said it also will pack under a customer’s own label upon request.
Its offerings include more than 500 grocery items, such as cake, muffin, cookie and bread mixes, mashed and specialty potatoes, macaroni and cheese products, flour precuts, oatmeal, pasta salads, skillet pasta dinners, and spices in shaker and grinder bottles. Quality Food Brands also manufactures and sells the Paula Deen line of baking mixes, spices and ready-to-cook food products.
To spur customer visits, a number of drug store chains recently have been boosting their food and grocery selection, including private brands.
Late last week, Walgreen Co. announced that it had begun offering DR Delish premium snacks and beverages, a label gained from the company’s acquisition of Duane Reade, in Walgreens stores nationwide.
And earlier this summer, Rite Aid introduced a a new "price fighter" private brand called Simplify as part of a rebuilt private-label program. The first Simplify products included paper towels, bath tissue, bottled water, and strawberry- and berry-flavored drinks. Plans call for more household items, soda and snack foods to be added to the line later this year.
Chief executive John Standley said in a conference call on Rite Aid’s first-quarter results that the company has "made excellent progress" on its strategic initiatives, including its revamp of private label.
The drug chain reportedly expects to have about 1,000 of its private-label products switched to the new brand scheme by the end of the year, with the new architecture including six brands: Rite Aid Pharmacy for health products, Renewal for beauty, Pantry for food and select consumables, Home for household goods, Tugaboos for baby, and Simplify for price-sensitive shoppers.
