CVS Expands Its Private Labels With an Eye on Price, Transparency and Sustainability

CVS Pharmacy is capitalizing on the trend towards private label by adding more than 150 new products under its in-house brands, including Live Better by CVS Health and two new labels: Fair Trade-certified coffee label Gold Emblem and men's personal care line Goodline Grooming Co. "When most people think of a 'store brand,' they think of products that are created as a more inexpensive alternative to a national brand, or at best, a 'compare to' product," Brenda Lord, vp of store brands at CVS Health, told Adweek. "Our high standards in quality, safety and trust across our store brands have led us to challenge this misconception." The U.S.'s largest pharmacy chain is in good company, joining retailers such as Bed Bath & Beyond, Amazon, JCPenney and Target, all of which have increasingly focused on their own in-store brands. In fact, private label grocery brands continued to outpace national brands in terms of sales growth in 2020 for the fourth consecutive year, according to a report by consumer research firm Coresight. CVS said the new offerings were influenced by feedback that showed continued shifts in consumer preferences towards lower prices, transparency and sustainability. "During a time where consumers are looking for brands to step up and support their communities, building trust by telling our brand story and the purpose that drives our identity is of the utmost importance," Lord said. Product development To illustrate Lord's point, the new assortment includes water packaged in BPA-free recyclable boxes; feminine care products made from 100% cotton; and beauty products free of toxic ingredients such as formaldehydes. "First and foremost, we are responding to customers' interests in natural ingredients, sustainability and on-trend products," she added. "We looked at our product packaging and assessed the message it was conveying." Under its brand Live Better by CVS Health, for example, the retailer created packaging focused on telling a clearer story. "We tied in bold colors and shapes to create a vibrant brand that put the ingredients on full display," Lord said. "As a line filled with gluten-free, non-GMO verified, USDA-certified organic and vegan products, we made sure all benefits were clearly labeled. In some cases, we included backstories on where the ingredients came from and their importance to maintaining a sustainable environment." These Live Better products include immunity defense with mushrooms, as well as a stress relief formula made with ashwagandha and rhodiola, and apple vinegar products that include echinacea, elderberry and blueberry. Meanwhile, the retailer is also stocking its shelves with snacks and beverages such as organic roasted nuts, chili lime beef jerky and the Electrolyte Max drink. An old hand at private label Even with all the new offerings, CVS is not new to private label. Its store-owned brands program began with a mineral product it introduced 50 years ago. Over subsequent decades, the pharmacy chain brought thousands of over-the-counter medications, personal care products, consumables and home goods to market, like Pop-arazzi, Beauty360, GSQ by Glamsquad, Total Home, Caliber and Pet Central, Lord said. "The CVS store brands team relentlessly looks at customer insights and identifies trends and white space in the market for solutions our customers need," she explained. "We’re also strongly committed to product innovation, developing new or enhanced products and delivering comparable quality to competing brands, but with the value and trust associated with the CVS name." That includes testing to ensure the products are of the highest quality, with team members visiting over 800 manufacturing facilities and evaluating more than 6,000 items per year for factors such as product stability, potency and adverse effects. CVS Rolls Out New In-House Digital Advertising Network