Dive Brief:
- Whole Foods is blazing a trail for private-label manufacturers with an in-house taste-testing task force that is formally trained in "descriptive analysis" to assess flavor quality and consistency in its private-label products.
- Other manufacturers have employed sensory analysis panels to evaluate products. But Whole Foods' program is more intensive, using "descriptive analysis," and it is the only grocery chain investing in a panel of this intensity, according to Spectrum Sensory.
- Normally, a panel of this nature would require an investment of $10 million for facilities and people, and additional annual investments for testing and resources, Bob Baron, vice president of business development at Spectrum Sensory, told Fortune. However, Whole Foods uses existing employees and has hired a well-versed outside consultant for a fraction of the investment (about $1 million, Baron estimates).
Dive Insight:
Even a $1 million investment in a taste-testing panel is significant, particularly for a retailer. But consumers' demand for consistency in their food and beverage products necessitate these types of investments.
Private-label brands are trying to level the playing field versus their brand name competitors, and flavor is playing an increasingly important role here. If retailers can match or beat manufacturers on consistency of their products' taste, that's one more concern for manufacturers in addition to private-label prices, packaging improvements, and efforts to incorporate more natural ingredients.
Whole Foods employees are familiar with consumers' questions or concerns about products. By knowing what consumers are looking for (and looking to avoid), employees can discern what might and might not work for private-label products.
Such an operation can clue manufacturers in on the crucial role employees play in terms of connecting with products and/or consumers on a more intimate level. Employees can offer insight to management based on direct experience with products and consumers that executives then apply to more overarching decisions for a product, brand, or the company as a whole.