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Albertsons Cos. leveraged its partnership with the online food tool Instacart to launch a virtual store showcasing its organic and natural private labels.
Called O Organics Market, the online store powered by Instacart is designed to make it easier for customers to find and purchase organic, natural and other food, drinks and groceries, Albertsons said Thursday. Offers include items from Albertsons private label O Organics and Open Nature and products from other brands.
The Boise, Idaho-based retailer initially launched O Organics Market in San Francisco and Washington, DC, but said it plans to expand the virtual store to more cities. To access the O Organics Market, consumers in those markets go online at Instacart.com/O-Organics, enter their zip code, and start shopping. Orders can be delivered to their doorstep in under two hours.
Albertsons noted that O Organics Market serves a key segment of Instacart buyers – those who want organic and natural products – and helps the retailer grow its digital footprint.
“With nearly 3,800 items from O Organics, Open Nature and other organic and natural brands, O Organics Market is another important step in our strategy to provide customers with what they want, when they want it.” , Shane Sampson, Director of Marketing and Merchandising. at Albertsons, said in a statement. “With such a wide selection of organic and natural products, customers will be able to order from exclusive items like Open Nature Sockeye Salmon and O Organics Mission Figs to more mainstream products like Dave’s Killer Bread and Annie’s Organic Fruit Snacks. “
According to Albertsons, O Organics is the largest USDA certified organic brand in the country. The grocery store’s Open Nature range includes natural and minimally processed products geared towards the well-being of consumers, animals and the environment. O Organics and Open Nature are sold exclusively through company stores including Safeway, Albertsons, Vons, Jewel-Osco, Acme, Shaw’s, and United Supermarkets, among other retail banners.
“We are delighted to extend our partnership with Albertsons Cos. by fueling the O Organics marketplace, ”said Nilam Ganenthiran, commercial director at San Francisco-based Instacart, who partnered with Albertsons for same-day online grocery delivery last November. “Their forward-thinking approach to meeting customer demand is exactly the direction the grocery industry is taking. “
In a presentation to investors in mid-May, Albertsons said the natural and organic product category has grown 19% over the past three years, with an annual growth rate of 7.8%. The category’s sales penetration across the store is 12.3%, up nearly 1% year-over-year. The penetration of the private label of the distributor in natural and organic is around 22%.
O Organics, which became a billion dollar brand in November 2017, currently has over 1,000 articles and is expected to include 1,400 articles in 192 categories by the end of 2018. Now with over 400 products, Open Nature should include 700 articles. in 108 categories by the end of the year and is expected to grow to a billion dollar mark by 2022.
Albertsons has announced plans to launch nearly 1,400 new private label products in its banners this year, double the number introduced in 2017. New items are expected across the private label portfolio, which includes, in addition to O Organics and Open Nature, the Lucerne brands. , Signature, Waterfront Bistro, Value Corner, Primo Taglio and debi lilly design.
In early April, Albertsons said it was expanding Open Nature to the non-food realm and planned to roll out more than 240 home care items for the brand this year. And at the end of May, the grocer unveiled Signature Réserve, a line of ultra-premium private label foods. Initial items include ice cream, pasta and pasta sauce, packaged coffee, and loose tea.
Learn more about online grocery and meal purchase / delivery solutions at the inaugural SN Summit, held October 1-3 in Dallas, the only conference where grocery retailers and restaurateurs learn from each other.
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