Kroger's alt-meat sales soar on real-meat shelf placement (but is it pulling an Apple?)
Beyond Impossible... We find the Simple Truth. Grocery giant Kroger stuffs its supermarkets with name brand items, but complements Heinz and Pepsi with its own Kroger-branded (private label) products. It owns a plant-based meat brand called Simple Truth, but also sells non-Kroger brands (like Beyond Meat and Impossible). Just in-stock: some tasty alt-meat stats...
- +75%: How much Kroger's plant-based meat sales jumped last quarter. The number of alt-meat buyers popped 50%.
- +23%: How much Kroger's plant-based meat sales grew simply by moving the products from the alt-food section to the meat department.
Location, location, location... Retail products want that prime shelf-placement real estate. Nice packaging and quality do little to help a product's sales if it's tucked on the bottom shelf by the Aisle 87 bathroom.
- Placement matters extra for a non-mainstream product like plant-based meat. By placing it in the meat department, Kroger made it a real consideration for traditional meat shoppers.
- Meat-eaters are the target: Alt-meat companies like Impossible know they can't grow unless they target meat-eaters. "Flexitarians" that eat both animal meat and plant-based are key to taking plant-based mainstream.
Kroger has the same power that Apple has... To give its products special treatment. Apple owns and controls the App Store — and it's being sued/investigated in Europe for allegedly playing favorites with its own apps in App Store search results (e.g. Apple Music #1, Spotify #5). Kroger owns its markets, but also competes in them with others' brands. It has the power to give its products special shelf placement. With the best shelf space and a lower price point, it's probably eating into Beyond and Impossible's growth.