In the latest of a growing wave of brand consolidations, Walmart has sent Glad and Hefty bags packing from its food-storage shelves. Similar decisions are likely to play out across other categories over the course of the year, as Walmart steps up efforts to streamline brand assortments, often to the benefit of its fast-expanding Great Value brand and national brands that survive the vetting.
The move follows a shootout in a series of store tests starting late last year, which appear to have prompted the Glad, Hefty and Ziploc brands to hike ad spending dramatically, despite a deep recession and flat to falling category sales, in efforts to stave off de-listings. The contests had high stakes for the brands, given that Walmart makes up a third or more of their sales. Walgreens and CVS, too, have significantly pared their trash and food bag brand lineups in recent months.
In food bags, Walmart has consolidated nationally with one brand, SC Johnson’s Ziploc, and its own private label, Great Value, wiping Glad and Pactiv Corp.’s Hefty off its shelves, according to a person familiar with the matter. (Pactiv confirmed the move for its brand, while spokespeople for Walmart, Clorox and SCJ declined to comment.)
In trash bags, Glad and Hefty have retained their places on the shelves, two people familiar with the matter say, but Hefty now has a smaller assortment limited to its CinchSak line. This position was most likely preserved, says Consumer Edge Research analyst Bill Pecoriello, by Pactiv Corp.’s agreement to take over all private-label manufacturing for Walmart’s Great Value trash and food bags.
The clearest winner in the Walmart bag war — besides the retailer’s own Great Value — appears to be SC Johnson’s Ziploc, with mixed results for Glad, owned 80% by Clorox Co. and 20% by Procter & Gamble Co., and Pactiv Corp.’s Hefty.
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