Over the past few years we have seen a few “cross-over” products hit the shelves of grocery stores in Canada from Tide Liquid with Febreze fragrance booster to Dairy Milk chocolate bars with Oreo or Chips Ahoy pieces built in.
Pepsico and Cara Operations (parent of Swiss Chalet) have teamed up to offer an interesting cross-over product with Lays “Chalet Sauce” flavor. The product is hitting shelves across Canada right now and was well supported with this large display at Sobeys.
The product prominently features the Swiss Chalet logo and interestingly Cara also recently acquired a stable of grocery products primarily in the soup, gravies and broth categories with its purchase of St. Hubert.
We have also seen Starbucks, Tim Hortons and McCafe coffee growing its presence at grocery, most recently with the launch of Tim Horton’s Iced Capp Ready To Drink products at convenience and grocery stores.
These are good opportunities for food service operators to expand their reach beyond the restaurant and for grocery stores to boost margins offering premium products.