Dive Brief:
- Aldi has launched a vegan line of foods called Earth Grown, according to Store Brands.
- The Earth Grown products are all meat-free and do not contain animal byproducts such as eggs, honey and dairy.
- The selections include veggie and black bean burgers, chickenless patties and tenders, meatless meatballs and vegan mozzarella cheese found in its frozen and refrigerated food cases at $2.49 to $3.89.
Dive Insight:
As with other recent private label introductions, including 2016's Little Journey baby line launch, Aldi is tapping into growing consumer demand with its new Earth Grown brand.
Plant-based foods grew 8.1% during the past year, with meats representing 2.1% of sales among refrigerated and frozen products sold at retail, according to the Plant Based Foods Association. As innovations have helped vegan foods, and particularly meat substitutes such as Beyond Burger grow, demand has surged among consumers looking to eat healthier and live more sustainably.
In recent years, Aldi has made shopping at its stores easier for vegans and vegetarians. The company has posted a "Going Vegan" consumer guide that provides a list of Aldi private label products that are suitable for people who don't eat meat, poultry, fish, shellfish, milk, milk products, eggs or honey.
With these moves, Aldi has positioned itself for future growth in plant-based foods. According to HealthFocus data, 17% of U.S. consumers aged 15 to 70 currently claim to eat a predominately plant-based diet, while 60% report to be cutting back on meat-based products. Of those who are reducing their intake of animal-based proteins, 55% say the change is permanent, and 22% hope it is.
Other retailers have caught on to the vegan private label trend, including Whole Foods, Trader Joe's and Wegmans.
Aldi's industry-leading low prices should be an attractive differentiator. The German-based chain, with its U.S. headquarters in the suburbs of Chicago, also has a reputation for quality in its store brands. Last year, the discounter received dozens of new product awards for its gluten-free, organic and baby food options.
Aldi's quality-meets-value proposition is winning over shoppers and disrupting retailers. With plans to increase its store count to more than 2,500 stores during the next few years, the discounter's formula will only increase the pressure on competing retailers.