We find the mass retail giant’s level of involvement in the gluten free products market a pleasant surprise. At present, a typical Walmart Supercenter devotes about an eight-foot section within the grocery department to gluten free items. A somewhat limited assortment in terms of product depth and breadth is featured in the dedicated section. But the selection is more than sufficient for basic pantry-stocking. The retailer continues to expand its gluten free assortment in store as well as online. See Walmart’s online gluten free selection here.
Perhaps most intriguing, however, is the selection of gluten free items marketed under Walmart’s Great Value private label brand. The assortment includes cookies, granola bars, pasta and pretzels – all, not surprisingly, priced well below available national brand equivalents (NBE). For example, a 6-ounce box of Great Value Gluten Free rice pasta & cheddar cheese mix (aka mac & cheese) retails for $1.28. Compare this to the $2.48 price tag for national brand Annie’s gluten free mac & cheese.
Key Takeaways
- The favorable price/value proposition associated with Great Value gluten free goods compared with name brand equivalents (NBE) could be enough to entice consumers to trial Walmart’s store brand.
- Gluten free Great Value has the potential to be the value alternative for low-to-middle income shoppers required to maintain a medically diagnosed gluten free diet, i.e., those with celiac disease and other gluten sensitivities.
- Thus far, however, Walmart has not been very vocal about its growing presence in gluten free. Additional marketing efforts might be needed to draw the attention of gluten free shoppers.
- As with most categories, manufacturers and competitive retailers alike must keep a watchful eye on Walmart’s moves. The world’s largest retailer has a history of disrupting traditional retail models. Walmart could easily become a force to reckon with in the gluten free retail space as well.
Full report (PDF) available here: GLUTEN FREE Retail Intelligence, January 2016