Tariffs are up, calories are out, and protein is key—if social media are to be believed. Followers might be excused for believing that every other influencer is touting health consciousness, while the other half is addressing rising food costs. For smart retailers, that combination may prove to be a remarkable opportunity.

When Kroger noted increased sales of fresh produce, along with more requests from shoppers to learn about the source of the foods they are buying, it sought to understand what factors were underlying the shifts. In a recent sales call, Kroger’s CEO explained that the company believes the growing, widespread availability of weight-loss medications represents a primary driver for such consumer behaviors.

These medications typically rely on an appetite suppressant mechanism for their effectiveness. They can be helpful or even life-saving for consumers who struggle to control their blood sugar or who suffer from obesity. But depressed appetites also can be risky, in that consumers who simply are not hungry might not take in enough nutrients, calories, protein, and so forth to ensure a healthy, complete diet.

When it surveyed these consumers, Kroger also recognized their significant interest in enriched products, a key insight that it has leveraged to alter and expand its private-label offerings. Under its Simple Truth banner for example, Kroger has added 80 new products, all of which feature high protein contents. The newly introduced products include nutritional bars and shakes, designed to supplement and provide consumers with a more balanced diet.

As noted though, healthy and protein-rich options are only part of the story. Rising prices in grocery store aisles continue to challenge most consumers, and for them, Kroger presents its value-oriented store brands as a compelling choice. Its three private-label lines—Kroger, Simple Truth, and Private Selection—account for tens of thousands of products, which generate $30 billion in annual sales. Beyond the 80 protein-packed products, Kroger introduced almost 400 new items last year.

Many of them focus on value, but Kroger is determined to avoid creating a sense among its visitors that shopping in its stores is a chore. Thus, its recent product introductions also feature exciting, innovative flavors, like hatch chili–flavored chips and mushroom teas. These relatively niche offerings reflect current, fun food trends, a positioning that Kroger hopes will attract new customers.

More broadly, it is leaning in to expand the diversity of its food offerings. It is currently testing Asian store concepts in areas with large Asian populations, which will feature both culturally relevant consumable products and refurbished interiors. Such experiments appear similar to its previous initiatives to develop a series of Hispanic Experience stores that feature in-house ceviche and handmade tortillas, along with signage in Spanish. Noting the success of those efforts, it also introduced a corresponding private label, Mercado, that provides consumers with South American–inspired entrees, snacks, and sides.

Discussion Questions

1. Some of these changes seem to require significantly more resources than others. Do you think all of Kroger’s recent investments will be justified by the results?
2. What other concept stores might the grocer think to try next?

Sources: Patricia Battle, “Kroger CEO Sounds Alarm on Unexpected Customer Behavior,” Yahoo! Finance, June 23, 2025; “Kroger and Albertsons Boost Private Label Selections with New Product Lines,” Food and Drink International, April 3, 2025; Peyton Bigora, “Kroger to Open 2 Asian Grocery Store Concepts in Texas Next Year,” Grocery Dive, November 4, 2024.