Inflation may be cooling off, but consumers continue seeking lower price tags for their food purchases, including bakery buys and snack selections. At this week’s Private Label Manufacturers Association (PLMA) conference and expo in suburban Chicago, Dave Rinaldo—president of retail powerhouse Aldi—shared insights on how fellow store leaders and producers alike can strengthen their position in the future of the PL field.
During his Monday morning keynote “Hungry for Value: How Retailers and Manufacturers Can Fuel the Private Label Boom,” Rinaldo remarked to attendees that in recent years, private label has seen notable growth and favorable reputation with U.S. consumers wanting a balance of value and quality in their purchases. He is hoping for a bright future—not just at his company, but for everyone in the PL arena.
“We want everyone in this room to win,” he stated. “The reality right now: Aldi’s never been more successful, and we are in a position where I would say our brand has never been stronger, and we have never been attracting more people into our stores.”
When musing over the key factors driving Aldi’s success, Rinaldo credited the company’s people-first approach at every level, which is nothing new to its strategy.
“Employees are at the center of every single thing we do at our company,” he stated. “If you find the best ways to attract the best teams, they will drive the business. That was the case decades ago; that’s the case today.”
Private-label has been offering brand-name items a run for their money for quite some time, Rinaldo claimed, pointing out that 90% of consumers polled indicated they buy PL items and plan to continue that habit. He also noted that private-label sales have been on pace or outpacing brand products for the past decade or so—as long as companies in the field continue prioritizing their people, performing efficiently, and offering quality items, success is likely to continue.
Rinaldo acknowledged the company’s track record of offering bread products, chips, pretzels, and other items across the store at competitive prices (often half to one-quarter the price found on other U.S. shelves) offers an enticing draw to budget-conscious shoppers. However, he advised the PL pros sitting in on his remarks that those appealing price tags must be attached to appealing products.
“When you provide excellent quality at beautiful prices, that value appeals to everyone in America,” he stated.
Aldi partners with scores of private-label producers across the country to stock its aisles with those high-quality, high-value products, Rinaldo said. He confided that Aldi prioritizes partnerships with companies that share its values, regarding operational and packaging sustainability, the quality/price point balance, and even the value of being charitable. For example, since 2019 the company has been allied with the Alex’s Lemonade Stand Foundation (ALSF), an organization dedicated to battling childhood cancer. That partnership has involved everything from offering philanthropic lemon-themed baked items, frozen desserts, and apparel; to encouraging consumers to host their own charity lemonade stands at home.
“We have raised over $300 million,” Rinaldo said. “We’ve funded 1,500 research projects, and we’ve helped over 20,000 families,” adding that he feels the company’s efforts on behalf of ALSF have been an uplifting force in its business in many ways.
The organization’s namesake, Alex Scott, started her first lemonade stand to raise money to fight childhood cancer when she was just four years old and battling the disease herself.
“She created a platform, which she used to really change the world,” Rinaldo said. “I encourage everyone else to consider that.”
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