Dive Brief:
- Gopuff announced on Tuesday the launch of its first private label line, Basically, which includes bottled water, snacks, batteries, paper products and other household essentials.
- In the coming weeks, the company will roll out a line of snacks under the Basically, Amazing brand. It will also add products under the Basically, line and introduce new private label brands later this year.
- Private label is quickly becoming the latest competitive battleground among instant-needs companies looking to improve margins and secure customer loyalty.
Dive Insight:
Gopuff, which up until now has relied on selling a limited quantity of mostly name-brand snacks, over-the-counter meds and other convenience goods, is betting that its customers will spring for a new line of products it developed using the impulse-purchase data it’s gathered over the past several years.
The fast-growing company is starting with Basically, bottled water, and will roll out snacks, household products and other categories before it launches additional store brands. It may eventually broaden its scope to include wellness products. According to The Information, which first reported on the company’s private label plans, Gopuff has filed trademarks for prescription medication and testing devices like blood pressure monitors. It could also launch an additional snack line called Good Eat'N and eventually sell perishable goods like meat under the Basically, Amazing line, according to the report.
After spending several years selling impulse buys in many second- and third-tier markets, including college towns, Gopuff has recently hit the accelerator on market growth and new services. It now operates in more than 1,000 cities, including New York City, and has launched a fresh meals division, rolled out locally sourced products and built an in-house advertising arm. With private label products, Gopuff aims to expand margins for its vertically integrated business ahead of a reported public offering.
Across the instant-needs channel, private label lines are beginning to roll out as companies look to build value and customer loyalty. Buyk, which operates in Chicago and New York, is rolling out coffee, ice cream and candy under its own brand, and plans for private label to account for 40% of its total sales.
Gopuff is the leading player in the budding channel, accounting for 73% of sales, according to Yippit data, and looking to protect its leading position as startups like Buyk, Jokr and Getir along with larger firms like DoorDash move upstream.
Gopuff’s push into private label is being led by Jessica Glendenning, who joined the company last year from Brandless, where she was head of merchandising. Before that, she spent 15 years at Target, where she moved through a variety of buying and management positions. Gopuff also brought in Target veterans Sonia Eschenauer and Bri Waldoch to help launch its new private label operations.
