Big brands are no longer special to Target, to focus more on organic food products

Currently, canned and bagged food products face a long decline in sales.

Currently, canned and bagged food products face a long decline in sales.

According to reports, Minneapolis-based retailer, Target Corp recently informed its suppliers that it didn’t want to put as much money and effort into promoting some of their packaged products as it did in the past and instead wants to focus on healthier options.

The move reflects the shifting taste of shoppers who are more inclined to buy healthier and fresher foods at the expense of bagged or canned products.

Brands like Kraft, Campbell Soup Co, Kellogg Co and packaged goods will no longer be promoted like before and Target intends to utilize the money to market fresh and healthy foods as per the buyer’s choice.

Sweet breakfast cereals and corn flakes seem to have lost out to granola, yogurt and eco-friendly organic products. Also, canned soups are not popular anymore and will be de-emphasized. Instead, Target will focus more on healthy and offbeat products such as sauces and oils.

Currently, canned and bagged food products face a long decline in sales since buyers are choosing products that do not trigger their health issues. The retailers move confirms the changing trends and large brands need to overhaul their product-line if they want to remain buoyant.

CEO Brian Cornell said that the company will focus more on baby, children, style and wellness and food products tied to those categories. These products will be called signature categories and will get outsize resources and attention.

Brands such as General Mills Inc and Kellogg Co would fall into the bottom and will be known as perform category. The products will continue to remain on the shelves but they will not be promoted as frequently in circulars or in stores. They will also likely face more competition from Target-branded products since the retailer announced large investments in its brands.

The perform products might have to face reduced shelf space, as newer products will catch buyers attention.

Target said that promoting canned and bagged food products was not profitable for the company any more since most other retailers did the same thing. To attract the young crowd, retailers have to be distinctive and promote healthy and organic brands, Target explained.

America’s second-largest discount retailer also said that it would invest in consumer research to create its private-label line of products, which may further harm its old suppliers.

Cornell further added that he was aware the move is unacceptable to suppliers but it was a much needed measure to return the company to growth.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Inflation Brings More Worries for Investors in 2022

Inflation Brings More Worries for Investors in 2022

Inflation is chasing the investors and policy makers at a speedy rate. CPI increased by 7% in December, 2021, the highest since June, 1982.
22 hours ago
Amazon to Open First Algorithm-Based Fashion Store in LA

Amazon to Open First Algorithm-Based Fashion Store in LA

Enriching consumer experience in LA, Amazon’s Style store is transforming the ways of buying outfits through suggested algorithms.
1 day ago
US Inflation Rate Reaches 7% Marking the Highest Since 1982

US Inflation Rate Reaches 7% Marking the Highest Since 1982

The annual inflation rate in the US hit 6.2%, recording a highest in decades. Due to an unstable inflation, consumer prices increased by 0.9 percent in October and June, 2021.
2 days ago
McDonald’s expands test with McPlant Burger to 600 New Locations

McDonald’s expands test with McPlant Burger to 600 New Locations

The McPlant Burger is coming to nearly 600 McDonald’s outlets in the Bay Area and Dallas-Forth Worth starting February 14.
3 days ago
Google’s Online Services Team Grapples with Mental Health Crisis

Google’s Online Services Team Grapples with Mental Health Crisis

In a 2019 internal document obtained by Recode, many employees attest to being demoted, ostracized, or assigned to less desirable projects for speaking out.
3 days ago
GM Offers Fans a Sneak-Peak of the New Cadillac Escalade V-Series SUV

GM Offers Fans a Sneak-Peak of the New Cadillac Escalade V-Series SUV

The running lights, too, have a classier, sporty design. Cadillac aptly captioned the video “Power has a sound – and it’s a roar.”
4 days ago