… and How it’s Building a Bridge to the Kroger Network
Summary
The “better-for-you” movement is reshaping retail, and Target has emerged as its most powerful mainstream champion. In Target’s Rise as a Leader in Better-for-You Products, Icon Foods explores how Target has democratized clean-label, functional, and low-sugar foods, making wellness accessible, affordable, and cool for everyday shoppers. The paper traces the modern path to retail success, where brands are born on social media, prove themselves through DTC and boutique channels, and then scale through Target’s national platform. It also reveals how Target’s momentum is building a natural bridge to Kroger, whose expanding footprint and Simple Truth® platform position it to industrialize the next wave of better-for-you innovation. Together, these retailers are redefining how emerging brands grow from online buzz to national shelf presence. For founders, formulators, and ingredient partners, this white paper offers a strategic roadmap to navigate the new retail pipeline and win in a purpose-driven marketplace.
Thom King, CFS, Food Scientist
Chief Innovations Officer, Icon Foods
We’re in the middle of a retail renaissance, a real shake-up where the battleground isn’t just about price or convenience anymore; it’s about purpose. Modern consumers want clean, functional, and sustainable options that align with their values. Once upon a time, Whole Foods was the knight in shining armor of this movement. But lately? The crown is slipping.
Enter Target, the new hero of “better-for-you” retail.
While Whole Foods clings to its curated elitism, Target has quietly flipped the script, making wellness accessible, fun, and dare I say, mainstream cool. It’s doing what Whole Foods never could: bringing the clean-label revolution to the everyday shopper without the Whole Paycheck tax.
The New Path to Retail: From Scroll to Shelf
Here’s what’s new, the better-for-you movement doesn’t start in the boardroom anymore. It starts on social media.
The modern food and beverage success story begins with a founder, a phone, and a following. TikTok, Instagram, and YouTube aren’t just platforms, they’re launchpads. This is where the next generation of clean-label brands are born, tested, and loved into existence.
- Social media–driven DTC (direct-to-consumer) is now the first bridge.
- Founders build communities before they build distribution.
- Customers aren’t just buyers , they’re evangelists, beta testers, and brand storytellers.
Once the brand gets traction and proof-of-concept online, it crosses into the next phase: boutique and natural retail , the street cred phase where credibility gets built. Think Erewhon, local co-ops, and indie health stores. It’s where those TikTok-famous SKUs get their first taste of shelf life (literally).
Then Comes Target: Where Wellness Goes Mainstream
Target is where those early-stage brands level up. With 1,900+ stores and roughly 3.47% of total U.S. retail market share, Target has become the mass-market accelerator for BFY innovation.
Its Good & Gather™ and Favorite Day™ private labels make organic, non-GMO, and low-sugar options available at price points that feel approachable, not aspirational. Add to that Target’s partnerships with small brands like Naked Nutrition and Health-Ade Kombucha, and you’ve got a retailer that’s not just stocking products, it’s curating innovation.
Target’s secret sauce? Accessibility meets authenticity. It’s the one-stop shop where a mom buying diapers can also grab adaptogenic sparkling water, keto-friendly granola, or plant-based jerky, all without needing to navigate a wellness labyrinth.
In short: Target has democratized better-for-you retail.
Whole Foods: Still Holy, but Losing Its Halo
Let’s give credit where it’s due, Whole Foods started this movement. It carved out space for organic produce, non-GMO labels, and sustainability long before it was cool. But now? It’s showing its age.
- Limited reach: ~500 stores vs. Target’s nearly 2,000.
- Low Market Share ~1.7% of total U.S. grocery share
- Premium pricing: The “Whole Paycheck” stigma still lingers.
- Ingredient rigidity: Its conservative standards often block innovation instead of encouraging it. See allulose.
That might’ve worked in 2010. But today’s consumers want balance, clean without compromise, sustainable without snooty.
Target got that memo. Whole Foods didn’t.
The Kroger Connection: Scaling the Revolution
Here’s where the story gets really interesting. Target’s success in scaling the BFY model has built a clear bridge to Kroger , the next powerhouse in the chain.
Kroger currently holds about 9.2% of total U.S. grocery share and, with its pending merger with Albertsons, is projected to surpass 13%. But it’s not just playing defense , it’s redefining itself as a nutrition and wellness leader.
Above is a chart illustrating total U.S. grocery market share (2025) among the three major retailers:
- Whole Foods: ~1.7%
- Target: ~3.47%
- Kroger: ~9.2%
The visual makes it clear how Target’s growing presence sits firmly between Whole Foods’ niche footprint and Kroger’s national dominance.
With its Simple Truth® and Private Selection® lines, Kroger is doubling down on clean ingredients, sugar reduction, and transparent labeling , all themes Target has proven can thrive profitably in mass retail.
Think of it like this:
DTC sparks innovation → Boutique builds credibility → Target drives scale → Kroger cements legacy.
It’s a pipeline that allows emerging brands to evolve naturally , and it’s rewriting the rules of CPG growth.
Target’s incubation success has given Kroger a model to follow. Products that find traction at Target , think plant-based, low-sugar, functional, or gut-health–forward , are now being handpicked for Kroger’s nationwide rollout.
The Takeaway: The New Hero’s Journey of Retail
The old food world was linear: R&D → distribution → retail → maybe marketing.
The new world is flipped: social → story → community → retail → scale.
Target sits squarely in the middle of that journey , the sweet spot between boutique charm and national adoption. It’s the new validator of what’s “cool and clean,” paving the way for Kroger to take it coast to coast.
Whole Foods had the halo.
Target built the highway.
Kroger is about to own the map.
In short:
Target democratized the wellness movement.
Kroger will industrialize it.
And social-media-driven DTC? That’s the launchpad that makes it all possible.
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