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Pick n Pay adds high-end private label groceries in bid to grab Checkers and Woolies customers

Business Insider SA
Pick n Pay's new Crafted Collection premium range. (Image: Pick n Pay)
Pick n Pay's new Crafted Collection premium range. (Image: Pick n Pay)
  • Retailer Pick n Pay just launched a range of premium ketchup, chocolates, and olive oils under a new private label brand.
  • The range is called the Crafted Collection and has navy blue packaging.
  • It targets aspirational customers and those in the mid- to top-end of South Africa's income band.
  • It is stocked at Pick n Pay stores that serve higher-earning customers.
  • For more stories go to www.BusinessInsider.co.za

Grocery retailer Pick n Pay just introduced a line of high-end private label products, which will pit it more directly with retailers targeting more affluent customers such as Woolworths and Checkers.

The new premium range, called Crafted Collection, will be available at around 270 Pick n Pay stores serving customers in the middle to top end of South Africa's income band. With 70 products currently in store, Pick n Pay plans to launch 100 private label items by the end of the year.

"The range focuses on innovation across food and grocery items, and will soon extend into more categories," Pick n Pay said.

Pick n Pay's Pieter Boone, who recently took the helm at the retailer, unveiled a new strategy earlier this year, citing the retailer's plan to be organised into two consumer-facing bands designed around specific shopper needs.

Its direct rival, Shoprite-owned Checkers, introduced a premium brand called Forage and Feast in the recent past. The range features products within the food and kitchenware categories. The food items have bold and unique flavours.

Not only does Pick n Pay's move help it take aim at Checkers and Woolworths customers, but the expansion of its private label products also helps it grow its sales generated from inhouse-branded products, which now account for 25% of its sales. Five years ago, its private label products accounted for 18% of sales.

Pick n Pay's product and technical head, Nicki Russell, said the new range responds to shoppers' requests for a new affordable top-tier product range after the retailer launched its Finest private label range.

"90% of the range is locally sourced or produced by local suppliers," Pick n Pay said. 

"We've spent a lot of time understanding customers in this space, and have crafted this range to be sophisticated yet mainstream, at surprisingly good prices," Russell said.

The range features promise a "unique foodie experience to customers", the retailer said.

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Pick n Pay Crafted Collection citrus. (Image: Pick n Pay)
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Pick n Pay Crafted Collection hot beverages category. (Image: Pick n Pay)
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Pick n Pay Crafted Collection condiments category. (Image: Pick n Pay)
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Pick n Pay Crafted Collection butchery category. (Image: Pick n Pay)
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Pick n Pay Crafted Collection dairy category. (Image: Pick n Pay)
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Pick n Pay Crafted Collection mushrooms category. (Image: Pick n Pay)

It includes fynbos flavoured extra virgin olive oil, instant chai, smoky tomato ketchup, and a wide range of exotic mushrooms.

"The flavours aren't too Chefy or unattainable. We haven't gone for extremely niche flavours, but rather 'mainstream premium' that pushes the boundaries. We wanted our customers to relate to the flavours, and feel confident using them," Russell said.

It also has crafted chocolates, biscuits, shortbread, and hot chocolate focused on indulgence, which is also in line with a growing post-Covid trend among customers who are spoiling themselves more. "Customers are increasingly looking to treat themselves to food indulgence that doesn’t break the budget," the retailer said.

The Crafted Collection, said to be aspirational, has navy blue packaging, which Pick n Pay said follows a global "blue is the new black" trend.

"We believe we've created a product that not only looks amazing but tastes irresistible… We wanted customers to feel proud to place it on the dining table or to gift it to someone, said Russell.

 
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