Food Brands Follow Shoppers To Dollar Stores

As more consumers see the dollar store as a legitimate place to shop for food, manufacturers —from such giants as General Mills, which recently started selling Fiber One products in the dollar outlets, to trendy startups like vegan mayo maker Hampton Creek — are vying with the chains’ more-profitable private brands for shelf space, according to Bloomberg Businessweek. To compete, manufacturers are adapting their products for dollar store consumers.

Unlike value shoppers who buy in bulk from super-centers such as Costco, dollar store shoppers prefer smaller packages, which lowers sticker prices while pleasing older customers and those in small households. “Here, we market our products in smaller package sizes—perfect for one- and two-person households—which include many of the 55-year-old-plus consumers,” General Mills Vice President Shawn O’Grady said at an investor conference in early July.

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