Imperial Distributors

Commentary From Our President

The "Greening" of HBC

Michael D. Sleeper, President/CEO, Imperial Distributors, Inc.

There is a new Green giant in supermarkets today. He's more determined than jolly, and his creed is: KEEP IT GREEN.

The new Green giant stands very tall in American life.

While many of us conceded that Green was making some headway, we thought it would not last. There was opposition by industry groups. The Green movement had a certain amount of fad behind it that usually puts a damper on the sustained popularity of almost anything.

How wrong we were! It's clear that Green is going to be around for a long time. You don’t have to be a "tree-hugger" to see the expansive nature of beneficial actions (as in the effort to reverse global warming.).

In supermarkets, the Green movement has had the largest effect in food, most notably in produce, where "organic" options have become commonplace. Packaged goods are in the Green game, too, although it's costing billions in new formulations and could sound the death knell for some formerly well-established brands. Food safety issues also come under the Green's umbrella, a recent example being the pet foods recall.

How has Green been active in non-foods?

In general merchandise it's new energy-efficient compact fluorescent bulbs and rechargeable batteries. The latest items are seen in the increased sales of storage jars, purchased by pet owners and shoppers cooking at home.

And Health and Beauty Care will be among the most active areas of Green in the months to come.

Besides health and wellness --a spin-off of Green--is benefiting from an aging population. Baby Boomers are coming on the scene, with 77 million Americans interested in purchasing OTC medications--from aspirin to elastic bandages to vitamins and supplements. Dental problems are more likely to surface, and general interest in nutrition, dieting and exercise are sure to increase HBC organic sales.

Meanwhile, supermarket pharmacies are well established and in-store clinics are beginning to come into their own.

Sales growth and customer interest will revolve around niche brands in skin care/body wash and shampoo/conditioners. With labels trumpeting natural/organic ingredients, the newer brands are coming to the fore, as established major brands hasten to enliven themselves.

Natural Programs generally run 4 to 8 ft. They have outfitted the shelving with signing, valences and banners embellished with colorful earth tones. With retails close to upscale (non-"natural") counterparts, new Green items are more profitable. With higher margins they are showing double-digit sales growth.

Since Green has eased itself into supermarket shelves, “naturally”, we are pleased to witness the Greening of HBC.

For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com

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