CPG delivery platform Gopuff has launched a line of private-label products -- beginning with alkaline and purified waters -- under the Basically brand name.
The bottled waters will be followed by branded essentials including batteries, cleaning and paper products, cutlery and food-storage items, Gopuff said on Tuesday.
Over the next few months, the company will expand its private-label offerings to such edibles as pretzels, nuts, trail mix, popcorn and snack mixes under the name Basically Amazing.
Gopuff says the private label launch is based on more than eight years of knowing “what our loyal customers look for in everyday essentials—insights that have enabled us to create product lines designed specifically for them.”
In the case of Basically Amazing nuts, instead of starting with the biggest sellers—traditional roasted and salted varieties—Gopuff “opted to go straight for big and bold flavors, such as Habanero BBQ Almonds and Everything Seasoned Cashews, because that’s what we know our customers love.”
Founded in 2013, Gopuff says it holds more than 73% share of the “instant needs” category, citing YipitData/Coresight Research.
The company’s move into private label comes at an inflection point of sorts for private-label CPG products.
According to IRI, in the 52 weeks ended Oct. 4 of 2020 private label had a 17.5% share of dollar CPG sales. In the year ended last Oct. 3, that had dropped to 17.3%
“After decades of growth, private brands have lost share in recent years, including during the COVID-19 pandemic, IRI said in a report last month. "Additional stimulus dollars and reallocation of household budgets due to working from home have empowered consumers to elevate their at-home consumption, including making more premium purchases and experimenting with new flavors.”
Gopuff differs from competitor delivery platforms like DoorDash, Instacart and Uber Eats in that it’s vertically integrated—meaning it buys inventory and distributes it from fulfillment centers.
Competitors in the integrated space include Fridge No More.
In addition to digital media, Gopuff typically uses television and out-of-home ads to generate awareness and trial.
One of its recent YouTube efforts was the fictitious game show “What The Puff?!” in which blindfolded contestants try to guess what they’re being fed.
Founded in 2013, Gopuff may be contemplating an initial public stock offering this year, Bloomberg reported last month.
“Investors are betting big on instant needs, with a host of companies securing significant seed or sequential financing rounds since the beginning of 2021,” Coresight Research noted in a recent report.
Gopuff says it operates nearly 600 micro-fulfillment centers and stores—delivering 4,000 products to customers in over 1,000 cities in the United States and Europe.
In the fourth quarter of 2021, the company launched service in New York City and the United Kingdom.