Galen Weston - Private Labels

Private Labels

In addition to investing in store renovations, early on Weston earmarked $40 million for the development of private label brands:

“We found it essential to change products and services before redesigning their image. For example, nothing is more disappointing for a consumer than to buy a private label product because of the attractiveness of its redesigned label and then find that the same quality that had disappointed her previously had not been improved."

In March 1978, Loblaw launched “No Name”, a line of 16 generic products in simple black and yellow packaging with advertised savings of 10 to 40 percent over the national brands. Within weeks, some no name items had sold out. Months later, the company opened its first No Frills store, featuring no name, along with a limited selection of 500 items at discount prices. Consumer response was so favourable that it began converting older, more marginal stores to No Frills outlets.

As the product line-up expanded, Loblaw soon began experimenting with a variety of gourmet no name items. When sales of “President’s Blend Gourmet Coffee” started outselling every other grocery item on the shelf, the decision was made to introduce a premium line of store brand products. In 1984, “President's Choice” was launched, with each item endorsed by Loblaws President Dave Nichol and promoted through the popular advertising supplement Dave Nichol’s Insider’s Report. No Name and President’s Choice went on to account for almost a third of grocery item sales at Loblaw.