SAN ANTONIO -- The retail end of Valero Energy Corp. is pumping up its investment in private-label products with the rollout of U Force Sport to its stores this week. The sports drink is the second product in the line, extending from U Force Energy, which was introduced in November, according to Hal Adams, vice president of merchandising and store development.
"Most of our private-label products carry the name Fresh Choices," he told CSP Daily News in an exclusive interview. "We didn't feel as if the Fresh Choices moniker spoke to the crowd interested in energy [image-nocss] and sports, so we created a new brand."
U Force Energy is available in a 16-ounce can and six flavors: Lemon Lime Rita, Lemonade, Blue Pomegranate, Cherry Limeade, low-carb Cherry Limeade, low-carb Blue Pomegranate. The new U Force Sport comes in both 32-ounce bottles (in Lemon Lime, Orange, Fruit Punch and Blue flavors) and 20-ounce bottles (in the same four flavors, plus Grape, low-calorie Grape and low-calorie Lemon Lime).
With a general rule to set the price on private-label products 15% that of national brands, Adams said the energy drink is "doing very well" and "building every week."
Asked why the company would introduce a private-label sports drink as that category sags (down 12.3% last year in volume), Adams expressed a remarkable enthusiasm about prospect.
"We think there's a huge opportunity if the brand is managed correctly and the retail price is a value," he said. "That category has been affected by the customer flow of the heavy user, which is the lawn worker, the construction worker, the guy that works outside in the heat.
"In the last six months, we've suffered some unusually cold and wet weather, along with the recession keeping some of those people off the job. But we think when things dry and warm up and the economy gets turned around, people will still have the thirst for value and that they'll go to a well-executed brand."
To give the new product an extra push in Texas, the rollout of U Force Sport will come with "a very hot price" on pallets in front of stores during April.
Similarly, Valero is launching a new marketing effort to push trial of both U Force Sport and Energy, which to date has mainly been promoted with in-store POS signage.
"We're beginning to arm our employee base... with coupons that allow them to approach customers and offer them one of our private-label items," Adams said. "If they happen to be standing in front of the energy door or they walk up to the counter with a national-brand product, the store manager may say, 'Have you tried one of ours? Would you like me to buy you one?' "
The U Force drinks join several other private-label beveragesspring water, flavored soft drinks, vitamin water, fitness water, green tea, iced tea, pink lemonadein Valero coolers, all of them under the Fresh Choices brand. But the company's investment in private label extends well beyond the beverage category. Among recent introductions:
A line of kettle-cooked potato chips, single-serve and take-home bags. A line of bagged candy. A line of pork skins and "cracklins." And coming soon: "At the beginning of May, we'll be rolling out a line of meat snacks, specifically Texas-style jerky. Following that, we have a snack line of high-quality nuts, dried fruits and trail mixes," Adams said. "We have on our calendar something major coming out every six months between now and the middle of next year."
So why the investment now?
"We're very bullish on this," Adams said. "We think it allows the consumer to have great value, and it allows us higher profitability as well as to grow our brand. These are things that give us more relevance in the market place to the immediate-consumable customer."
Valero Energy Corp., San Antonio, is one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean.
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