Walgreens Launches a 'Nice!' Private Label

Walgreens quietly introduced a new private label in July called "Nice!"While the drugstore chain did not officially announce the launch until Aug. 18, ceiling signs and shelf talkers began appearing along with product in some stores last month. The ceiling signs encourage shoppers to "try new Nice!" and also carry a "Smart. Quality. Everyday" tagline for which Walgreens filed a trademark with the U.S. Patent & Trademark Office in July. Products include dried fruit snacks, tomato sauce, macaroni & cheese, honey, rice and baking soda. The products are positioned as national-brand equivalents.The new brand will eventually include 400 grocery and household products, according to a media release, and be priced as much as 30% less than national brands. The retailer plans to have most Nice! items on shelves by early 2012, and will continue adding to the line throughout the next few years, the release said.Current private labels including Cafe W, Deerfield Farms, and W will be phased out and transitioned to Nice!, the release said. The change is part of a broader strategy to build the private label business. The release cites Nielsen data finding that 75% of Walgreens' shoppers purchase the chain's store brands."Store brands have always been a core part of our business," Joe Magnacca, president of daily living products and solutions, said in the release. "With the launch of Nice!, we are streamlining our offering to make it even easier for customers to identify high quality everyday essentials at a great value."The new shelf talkers carry images of private-label products from the W and Deerfield Farms brands alongside a "now" arrow pointing to the new Nice! packaging. (See Images at right.)Walgreens says it will launch a national marketing campaign in 2012 to drive awareness and generate trial for the brand. The retailer is also training employees to become brand ambassadors, according to the release.The trademark for the tagline, filed on July 13, references a long list of potential "goods and services" such as beverages, snacks, personal care, household, miscellaneous food, confectionery, and fresh fruits and vegetables. Walgreens registered a trademark for "Nice!" in June.Walgreens also rolled out a Pet Shoppe private label for pet products in June. The retailer says it will continue to use the Walgreens label for health and wellness products.In other recent private-label activity, Walgreens launched "Big Flats 1901" beer in January. The chain also recently removed the "DR" from its "DR Delish" brand as it expanded to Walgreens stores from its original home in the Duane Reade chain acquired in 2010. The brand is now called "Good & Delish." (See Related Articles.)

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