In a bold move to redefine its position in the upscale grocery market, Walmart has unveiled Bettergoods, its most significant private food brand in two decades. This launch represents Walmart’s strategic entry into a segment that has long been dominated by trendsetters like Trader Joe’s and Whole Foods. With Bettergoods, Walmart is not just expanding its product lineup—it’s making a statement about quality, affordability, and accessibility in the upscale grocery space.
The Rise of Bettergoods
Bettergoods marks Walmart’s fastest brand rollout to date, reflecting the urgency with which the retail giant is pursuing innovation in the grocery sector. The new brand will feature an array of products, from the exotic pistachio nut butter to plant-based mozzarella, all priced to deliver value. With items ranging from under $2 to below $15—and most under $5—Bettergoods is set to democratize gourmet food shopping, making upscale products accessible to a broader audience.
What’s on Offer?
Walmart’s new brand will offer 300 chef-inspired items across various categories. This diverse range includes frozen foods, dairy, snacks, and beverages, categorized into three main types: culinary experiences, plant-based options, and “Made Without” products. The culinary experiences will feature trendy seasonings and unique flavors designed to enrich the home cooking experience. For those leaning towards a plant-based diet, options like oatmilk nondairy frozen desserts provide delicious alternatives. Meanwhile, the “Made Without” category caters to consumers with specific dietary needs, offering products that are gluten-free, antibiotic-free, and more.
Addressing Consumer Expectations
Scott Morris, Walmart’s Senior Vice President of Private Brands, Food, and Consumables, emphasizes that today’s consumers demand more from private brands. They seek products that combine affordability with quality, aiming to elevate their overall food experience. “Bettergoods is more than just a new private brand. It’s a commitment to our customers that they can enjoy unique culinary flavors at the incredible value Walmart delivers,” Morris stated.
Why Private Brands Are Gaining Popularity
The rise in popularity of private labels like Bettergoods is tied closely to ongoing economic pressures, particularly inflation. As household budgets tighten, more consumers are turning to private-label brands as a cost-effective alternative to name brands. According to a 2023 Circana report, sales of private-label brands in the U.S. increased by 6% year-over-year, reaching a total of $217 billion. These brands now account for 25.5% of total unit sales, up from 24.7% the previous year.
Private labels are particularly popular among Millennials and Gen X consumers without children, who make up more than a third of the market. Households with children comprise another significant portion. These demographics are drawn to private brands not only for their lower prices but also for their quality and innovative offerings.
Targeting a Younger Demographic
Walmart’s strategic focus with Bettergoods also includes appealing to Gen Z consumers, who tend to be more frugal and less brand loyal than older generations. This demographic prioritizes quality and value over brand names, indicating a shift in how younger consumers approach shopping. By offering a private brand that meets these criteria, Walmart is positioning itself to attract these younger shoppers, ensuring its relevance in a changing market landscape.
A Game Changer in the Grocery Sector
The introduction of Bettergoods could be a game changer for Walmart, enabling it to compete more aggressively with established players in the upscale grocery market. By blending quality with affordability, Walmart is not only expanding its reach but also reshaping perceptions of its brand in the grocery industry.
As Walmart rolls out Bettergoods across its online and physical platforms, the initiative is set to test the waters of consumer acceptance. Will shoppers who typically turn to Trader Joe’s or Whole Foods for gourmet products consider Walmart a viable alternative? Only time will tell, but with Bettergoods, Walmart is certainly making a compelling case.
