Limited-time-offers (LTOs) bring consumers back to stores they may not have visited in a while and in rare cases, they may get a shopper to go someplace they rarely, or never, visit.
In other cases, an LTO simply gets a customer to spend more than they otherwise might have.
Starbucks, for example, recently brought back the S’Mores Frappuccino, and I’ve purchased it a couple of times. That’s a more expensive and more calorie-laden drink than I normally buy, but knowing it’s only going to be around for a few weeks made the indulgence seem worth it to me.
“Limited-time offers are one of an operator’s best tried-and-true tactics for creating a sense of urgency and encouraging guests to act now. They help motivate existing guests to return, while simultaneously attracting trial from new ones,” according to Restaurant Dive.
It’s a tactic Kroger knows well, and the grocery giant has gone back to that well by partnering with Coca-Cola for an exclusive LTO soda flavor.
Kroger adds an exclusive Sprite flavor
Like Starbucks, Kroger has trained its customers to look out for new exclusive LTOs.
Last summer, Kroger added 7UP Endless Summer Strawberry Watermelon as an LTO. It followed that up earlier this summer with the new Mandarin Orange flavor, which was offered in both full-calorie and “Zero Sugar” versions.
Now, the chain has teased a new Coca-Cola exclusive LTO on the Food 4 Less website.
“Refresh your summer with Sprite + Tea Peach. This limited-time flavor brings a refreshing twist to the iconic lemon-lime soda. It’s got the crisp, cool citrus taste of Sprite, now paired with the sweet smoothness of peach tea flavor for a bold blend of flavors that’s both familiar and exciting. Sprite + Tea Peach is a smooth and boldly satisfying experience that’s always caffeine-free,” the Kroger brand shared.
The new Sprite, which will be available in regular and Zero Sugar versions, will be sold across the entire Kroger family of supermarket chains. The company has not confirmed a launch date, but the Food 4 Less website says “July,” so it should be released any day now.
Sprite + Tea Peach joins a long list of recent Kroger exclusive LTOs.
“That chain has been locking down tons of exclusive products recently: GHOST energy drinks, swicy Peeps, 7UP sodas, and even a KBBQ Red Baron pizza. Kroger is no stranger to exclusive Sprite variants either; the massive chain was the exclusive home to the cookie-flavored ‘Sprite Vanilla Frost’ for the last two holiday seasons,” according to Sporked.
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Kroger needs to give customers a reason to visit
In a market where many consumers are struggling financially and Kroger is not the cheapest grocery option, according to data from Consumer Reports, the retailer needs to give consumers a reason to visit its stores.
That study used Walmart as the baseline, and Kroger’s prices actually came in 14.8% higher than its rival. Kroger’s new CEO Gregory Foran has pledged to address that.
“We have opportunities to sharpen our pricing and make value simpler for customers. Over time, our promotions have gotten too complicated and our price position has not kept pace where it needed to,” he said during the chain’s first-quarter earnings call.
More Exclusive LTOs:
- Walmart adds exclusive candy from 181-year-old brand
- Costco adds new exclusive dessert tied to viral trend
- Walmart unveils exclusive, limited-edition Mountain Dew lineup
Foran, however, understands that he can’t match Walmart or Costco‘s prices.
“Let me be clear on what this means. We do not need to be the lowest-priced retailer. We need to be more competitive, more consistent and easier for customers to understand. When a customer is deciding where to shop, we want more of them choosing Kroger more often because the value is clear, the experience is great and the trust is there,” he added.
Kroger uses LTOs to bring in customers
Soda flavors make for excellent LTOs because soda already sells well, and in the current economy, it’s an affordable indulgence — a way for consumers to treat themselves without breaking the bank.
“Packaged beverages have been a top-performing category in terms of sales and gross profit growth over the last 10 years,” NACS Research Analyst Emma Tainter told NACS Magazine, describing beverages as a category that “drives in-store traffic.”
That makes them ideal for an LTO.
“For consumers, LTOs encourage repeat visits and inspire them to spread the word,” according to to Datassential’s “The ingredients for a winning limited-time offer.“
Not every LTO, however, is launched for the same reason.
“An LTO can be implemented for a number of different reasons — whether it’s to test out an item that will later become part of the permanent menu, to put a spin on an existing item (like a burger with a new sauce, for example), or to try a totally new item in an effort to spur interest. For consumers, LTOs encourage repeat visits and inspire them to spread the word,” according to Datassential.
For Kroger, exclusive soda flavors aren’t really about selling another bottle of Sprite. They’re about giving shoppers one more reason to choose Kroger over Walmart or another competitor.
Exclusive flavors also benefit beverage makers by creating buzz around mature brands without requiring a nationwide launch.
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