June 6th, 2013

Some restaurants we talk with are hinky about having their licensed products in “dollar stores,” but the segment has gone from the place where brands go to die to one of the rising players in the frozen food channel.
Now Family Dollar Stores is partnering with the McLane Company, a provider of frozen foods for foodservice outlets. A former subsidiary of Wal-Mart Stores now owned by Berkshire-Hathaway, McLane will be offering “local” solutions to Family Dollar’s 7,200 outlets across 45 states. Additionally, McLane will help Family Dollar set up a national supply chain system to handle its growing offerings of frozen food. Originally dollar stores carried discontinued items and lines, but now are figuring prominently in the strategies of CPG houses looking to attract the value-oriented customer.
Meanwhile, ConAgra has been acquiring companies in order to increase its ability to navigate the store brand world, and has purchased Wisconsin-based Kangaroo Brands’ private label pita chips business (Kangaroo will continue to own its pita bread & frozen sandwich operations). The giant food marketer has been on something of an acquisition spree during the past two years after its bid to buy giant Ralcorp Holdings failed to happen.
In addition to Kangaroo, it has already bought up Odom’s Tennessee Pride (breakfast sandwiches & sausages), Del Monte Canada (packaged veggies, fruits & snacks) and National Pretzel Company (private label pretzels). The strategy appears to be the acquisition of a market basket of targeted manufacturers rather than a large holding company like Ralcorp.
Posted in Consumer Package Goods (CPG), Private Label | Comments Off