Natural Grocers' Private Label Playbook Earns 2025 Retailer of the Year

LAKEWOOD, CO – December 29, 2025 – Natural Grocers by Vitamin Cottage, Inc. has been named the 2025 Retailer of the Year by industry publication Store Brands, a recognition that highlights the company's masterful expansion of its private-label offerings. The award celebrates the family-operated retailer's ability to significantly grow its store brand without compromising its foundational mission: providing high-quality, healthy, and natural products at affordable prices.

This accolade is not merely a nod to product proliferation but a testament to a carefully executed strategy that intertwines rigorous quality standards, consumer education, and competitive pricing. As the private-label market surges, Natural Grocers has carved out a distinct identity by proving that store brands can be leaders in quality and trust, not just followers in price.

The Anatomy of an Award-Winning Brand

At the heart of the recognition is the impressive growth and strategic positioning of the Natural Grocers Brand. Since its inception, the line has expanded to include over 900 unique products spanning groceries, household essentials, supplements, and body care. This expansion has been a significant driver of the company's financial performance, with private-label products consistently accounting for a growing share of revenue. In fiscal year 2025, store brands represented 8.6% of total sales, up from 7.9% just two years prior, demonstrating a clear and growing appetite from the company's loyal customer base.

What sets this expansion apart is the unwavering adherence to the company's famously strict quality standards. Each new private-label item is vetted against a long list of requirements. The company sells only USDA-certified organic produce, pasture-raised dairy, and free-range eggs. Its branded products extend this philosophy, explicitly excluding artificial colors, flavors, preservatives, and sweeteners. This commitment is further solidified by a focus on sourcing from vendors who practice regenerative agriculture and by requiring robust third-party certifications, such as Non-GMO Project Verified, Fair-Trade Certified, and Global Organic Textile Standard (GOTS).

This disciplined approach has allowed Natural Grocers to tap into the powerful consumer trend prioritizing health and wellness. With a reported 58% of shoppers choosing organic for its perceived health benefits, the retailer's transparently high standards for its affordable house brand create a powerful value proposition.

A Strategy Built on Trust and Education

Natural Grocers' success extends beyond the product shelf. The company has cultivated a retail ecosystem built on customer education and trust, which serves as a crucial support structure for its private label. Unlike many retailers, every Natural Grocers store employs a credentialed Nutritional Health Coach who provides free, one-on-one health coaching sessions and nutrition classes to the community. This educational framework empowers customers to understand the ingredients and sourcing behind the products they buy, directly reinforcing the value of the Natural Grocers Brand.

This strategy directly addresses a documented gap in the market. While consumer interest in natural and organic products is at an all-time high, particularly among younger generations, significant confusion persists. Research shows that 40% of shoppers are either unsure of the difference between 'natural' and 'organic' or believe them to be the same. By investing heavily in education and transparency—through its health coaches, detailed in-store signage, and digital content—Natural Grocers demystifies its product standards, building a level of trust that competitors find difficult to replicate.

This holistic approach is rooted in the company's 'Five Founding Principles', which prioritize quality, community, and employee welfare alongside affordable pricing. By investing over $16 million in crew compensation and benefits in fiscal 2025, the company fosters an engaged workforce that becomes a key part of the customer's positive in-store experience, further solidifying brand loyalty.

Navigating a Competitive, Conscious Market

The natural and organic grocery sector is fiercely competitive, with rivals like Sprouts Farmers Market also leveraging a strong private-label strategy. Sprouts has achieved a higher private-label sales penetration, reaching 24% in mid-2025. However, Natural Grocers differentiates itself not by sheer volume but by the depth of its quality control and the integration of its brand into its core educational mission.

While competitors also focus on health and value, Natural Grocers' public-facing commitment to specific practices—like sourcing eggs from Regeneratively Grown™ certified farms and requiring organic certification for its entire coffee category—creates a clear point of distinction for conscious consumers. The brand's growth is occurring within a favorable market environment. The overall U.S. private-label sector grew by $9 billion in 2025, with store brands outpacing the growth of national brands. Within this trend, organic foods are a major driver, with sales climbing over 5% to reach $71.6 billion in the last year.

Natural Grocers is effectively capitalizing on this momentum by offering a trusted, affordable entry point to the organic market. Its strategy resonates with value-conscious shoppers who are unwilling to compromise on their health and ethical standards, positioning the company favorably against both conventional grocers and other natural food specialists.

Charting the Course for 2026 and Beyond

Winning Retailer of the Year is a milestone, not a destination. Natural Grocers has already signaled its intent to continue this aggressive but principled expansion. Plans for 2026 include launching new private-label products in key growth categories such as dairy, body care, and frozen foods. This forward-looking strategy aligns perfectly with emerging consumer demands.

The global organic skincare market, for example, is on a trajectory to exceed $25 billion by 2025, fueled by consumer demand for clean ingredients. By expanding its body care line under its trusted house brand, Natural Grocers is poised to capture a share of this lucrative and mission-aligned market. The continued push into various grocery aisles reinforces the brand as a comprehensive, high-quality, and affordable alternative for the entire shopping cart.

By continuing to innovate within its private-label portfolio while staying true to its founding principles, Natural Grocers is not just responding to market trends but is actively shaping consumer expectations for what a store brand can and should be.