RetailAnalysis
19 April 2017
Kroger targets sustainable products with new initiative

As part of its new 'Sustainability Lives Here' campaign, Kroger is offering customers digital coupons targeted towards sustainable products.

New website to support the program and broader sustainability initiatives

The digital coupons are being made available at a new website to support the program, SustainabilityLivesHere.com. They are targeted towards certified products such as Fair Trade, Rainforest Alliance, Forest Stewardship Council, along with organic and natural products across its departments. The website also provides customers with an in-depth look at the retailer's sustainable supply chain initiatives and recipe ideas based on environmentally friendly products. It also provides customers with ideas around reducing food waste and eating well.

Aligns with Kroger's corporate sustainability focus

The campaign is being launched to coincide with Earth Month, and aligns with Kroger's corporate sustainability focus. This includes a goal of zero waste designation by 2020. The retailer is also running a number of programs to optimise private brand packaging and improve transport efficiency by 20% by 2020.

Builds on progress with natural and organics

We view this initiative helping the retailer to raise awareness of its sustainability-focused products and enhancing its credentials in this area. However, it will further intensify the competitive pressures on specialist retailers such as Whole Foods Market, which have been impacted by the investments mainstream retailers have made in growing their natural and organic ranges. At Kroger, the growth of these ranges have been driven by its private brand, Simple Truth, with sales increasing to $1.7bn in the last year, with Simple Truth Organic accounting for more than a billion of this.




Stewart Samuel, Program Director, IGD Canada
Based in Canada, Stewart heads up all of IGD's research and coverage on Kroger. He is also responsible for shaping IGD's research program across North America. Contact Stewart at stewart.samuel@igd.com for further insight on the region.
@Stewart_IGD
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