Baton Rouge-based Associated Grocers is expanding two of its house brands in local supermarkets in response to growing demand.
One is the Full Circle line of all-natural and organic food products. AG introduced Full Circle products, which include packaged goods like breakfast bars, cereals, snacks and dairy items, several years ago without much success, according to AG President and CEO Emile Breaux.
“I don’t know if the consumer was ready for these products at the time,” he says. “The consumer was still believing that Whole Food was the only place to go for these kinds of items.”
More recently, however, AG and the Chicago-based supplier of Full Circle products, Topco, have reformulated the merchandise mix of Full Circle products in local stores and sales have increased so much that AG is expanding the brand.
“It’s really beneficial for independent supermarkets to be able to respond to demand for foods that are better for you,” he says.
AG is also expanding its Over the Top line of cupcake decorating accessories. The brand, which, like Full Circle, is manufactured and distributed by Topco, contains nearly 100 different products, including icings, sprinkles, and frosting bags and tips. AG began stocking local supermarkets with items about six months ago, and Breaux says consumer response has been overwhelming.
“We’ve seen double-digit growth in this category year over year,” he says. “This has become one of the real shining stars of the center store.”
In yet another expansion, AG is growing its Table Fresh Foods, a wholesale distribution division that the company created in early 2015 after acquiring local wholesale distributor, L&A Foods. Table Fresh Foods supplies more than 200 restaurants with produce and other specialty food items. Breaux says AG plans to grow Table Fresh’s line of commissary dishes, particularly soups and side dishes, which have become big sellers in the deli sections of AG supermarkets.
“We continue to invest in putting more capital into the business, not just the food service sales to local restaurants but we are enhancing the capacity of the commissary services,” he says. “We have some very big plans and we’re looking for ways to expand.”
—Stephanie Riegel
