Kroger adds healthy milk to its profitable private label arm

US grocery retailer Kroger announced yesterday that it will launch a cholesterol-reducing, fat-free milk under its private label ‘Active Lifestyle’. Late June the retailer already announced that it would introduce this new healthy addition to its own label assortment and the nationwide roll-out starts this week.

According to Kroger, “(…) this new milk product contains CoroWise™ plant sterols, an all-natural ingredient sourced from plants and found naturally in foods such as vegetables, seeds and nuts. Plant sterols are recognized by the U.S. Food & Drug Administration (FDA) for cholesterol lowering attributes. Clinical studies show they can help reduce “bad” cholesterol (LDL) and reduce the risk of coronary heart disease.”

The new milk – which will be equally priced compared to other varieties of milk – is the latest addition to Kroger’s highly profitable private label assortment. According to Kroger officials, private labels account for some 24 per cent of Kroger’s grocery revenues. Kroger itself is also a major food producer with more than fourty production sites. The plant sterols used in the new milk are produced by Cargill.

Local media quote Kroger officials as saying that the new Active Lifestyle milk is the first of many more products to be rolled out in the months to come that target aging baby boomers with health benefits. "Baby boomers want an active lifestyle," said Donald Becker, head of merchandising for Kroger and in charge of the company's private labels to the Cincinnati-based newspaper The Enquirer. "All levels of our private labels are growing well."