2022 March Board Book

Processor Partnerships Update

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Private Brands (Store Brands) highlighting Costco - Kirkland Signature

Part of the CMAB’s strategic plan is to partner with supermarket and club chains to get the RCM Seal on more of their in house branded items. This helps build long-term relationships with the chains to build on successes and add more items made from Real California Milk. Costco is a key CMAB partner with over 800 warehouse clubs in the US and numerous international locations, which we also interact with. Many of you are likely familiar with Costco’s Kirkland Signature (KS) brand, which is exclusive to Costco. The KS brand represents over $58 billion in sales annually – about 25% of Costco’s total revenue. Kirkland is America's biggest consumer packaged goods' brand measured by sales. Most people are unaware of just how big the KS brand is. It's larger than Hershey, Campbell Soup or Kellogg’s and appeals across many demographic groups. The strategy of one brand differs from that of major supermarkets, often offering 3 tiers of quality including value, brand equivalent and premium brands. The CMAB works with many of these chains and their brands and must understand the complexities, goals, and positioning of the brands to effectively work with each chain. There are currently several Private Brand projects being worked on to help our mission of increasing demand for items made from California Milk.

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Americans Expect More Inflation in 2022

According to a recent Gallup study, eight in 10 Americans expect inflation to persist over the next six months. Fifty percent anticipate inflation to increase “a lot,” while 78% expect interest rates to rise, according to the Gallup poll. The Gallup findings match recent research conducted by KPMG which found that consumers expect prices to rise even more in 2022 than they did in 2021 and they are expected to spend an average of 22% more for groceries. As consumers look for savings and nutrition at a value, they will gravitate to store brands where items with the Real California Milk Seal have a strong presence.

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USDA to Boost Capacity at the Port of Oakland

US Secretary of Agriculture, Tom Vilsack, announced plans to increase capacity at the Port of Oakland to improve service for shippers of US-produced agricultural commodities. The USDA is partnering with the Port of Oakland to set up a new 25-acre “pop-up” site to make it easier for agricultural companies to fill empty shipping containers with commodities. Under this new partnership with the Port of Oakland, the USDA will cover 60 percent of the startup costs, which reflects the historical share of agricultural products that are marketed through the Port