Natural Grocers Expands Private Label Line with Non-GMO Peruvian Chips

Natural Grocers, the largest family-operated organic and natural grocery retailer in the U.S., has made a strategic move to expand its private label line with the introduction of three varieties of non-GMO Peruvian chips. This expansion is not just a business decision but a reflection of the growing consumer demand for healthier, more sustainable food options. The chips, crafted with simple, high-quality ingredients, offer a satisfying crunch and naturally bold flavors, aligning perfectly with the current health-conscious trends.

The introduction of these chips is part of a broader strategy by Natural Grocers to expand its private label assortment, which has been a significant driver of sales growth. Over the past two years, the company has launched 80 new products in 2024 and 59 in 2023, accounting for 8.5% and 7.9% of total sales, respectively. This indicates that the company's private label offerings are well-received by consumers and have the potential to drive further market share gains.



The financial implications of introducing new private label products, such as the non-GMO Peruvian chips, are significant. In the fourth quarter of fiscal 2024, net sales increased by 9.3% to $322.7 million, with a significant portion of this growth attributed to the increase in comparable store sales and new store sales. The daily average comparable store sales increased by 7.1%, driven by increases in transaction counts, items per transaction, retail prices, and new store sales. This growth was also supported by enhanced customer engagement with the {N}power® rewards program, compelling offers, marketing initiatives, and increased sales of Natural Grocers® brand products.

The gross profit during the fourth quarter of fiscal 2024 increased by 13.1% to $95.4 million, with a gross margin increase of 100 basis points to 29.6%. This increase was driven by store occupancy cost leverage and higher product margin, indicating that the new private label products are contributing positively to the company's financial performance.

Comparing this to the performance of their existing private label offerings, Natural Grocers has been consistently expanding its private label line. Over the past two years, the company launched 80 new products in 2024 and 59 in 2023, accounting for 8.5% and 7.9% of total sales, respectively. This shows that the private label products have been a significant contributor to the company's revenue and profitability. The company's private label offerings span six categories—grocery, body care, bulk, household products, pets, and supplements—and as of the end of fiscal year 2024, the grocer reported having approximately 800 private label product SKUs.

The introduction of new private label products, such as the non-GMO Peruvian chips, aligns with Natural Grocers' commitment to expanding its house brand across all departments. The company's private label offerings reinforce its focus on supporting small farmers and businesses, environmental stewardship, and health guarantees like hormone- and antibiotic-free and non-GMO. This focus has been pivotal to the company's success, as evidenced by the balanced nature of its sales growth in fiscal 2024, including increases in transaction counts and items per transaction, modest price inflation, and sales contribution from new stores.

In summary, the introduction of new private label products, such as the non-GMO Peruvian chips, has a positive financial implication on Natural Grocers' overall revenue and profitability. The company's private label offerings have been a significant contributor to its sales growth and profitability, and the introduction of new products aligns with its commitment to expanding its house brand and reinforcing its focus on health and sustainability. This strategic move is likely to attract more health-conscious consumers and increase Natural Grocers' market share in the competitive grocery industry.