A look at Walmart’s innovation center, where cleaner ingredients and trendy flavors take center stage

Walmart, the world’s largest retailer, says it’s keeping its vow to keep costs low while removing synthetic dyes and 30 other ingredients from its private-label brands by January 2027.

Walmart offers 18 of its own brands, with seven of these lines generating about $1 billion a year alone. Scott Morris, senior vice president of private brands for food and consumables, gave FOX Business Network a tour of Walmart’s 23,000-square-foot Culinary and Innovation Center to see how the company’s products are developed.

“Customers are turning over that package, that bag, or looking digitally at those ingredients more than they ever have,” said Morris. “More than half of the customers are actually very in tune and looking at those ingredient labels. And they wanted simplicity. They wanted transparency, and they wanted things they could pronounce and that they understood.”

WALMART ELIMINATING SYNTHETIC DYES FROM ITS PRIVATE-LABEL FOOD BRANDS

Walmart’s private-branded products are already 90% synthetic dye-free – while lines like its Bettergoods are created entirely without artificial ingredients.

The announcement includes the removal of artificial dyes, flavors and certain preservatives, artificial sweeteners and fat substitutes.

The move comes as companies like Kraft Heinz, PepsiCo and General Mills have made similar pledges of their own.

As the nation’s most ubiquitous grocer, company executives say they’re letting consumers lead the way.

This comes as the team at Walmart scours the nation and the world to study the newest food trends. Products include stuffed pastry bread with a raspberry rose and cardamom jam, ube dinner rolls, chicken wings with a spicy dill dry rub and cacio e pepe arancini.

While the offerings feel elevated, Morris said they don’t believe these products are premium. They’re aiming to make the food accessible.

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“We’re well over 450 items to date, and the reception of the brand has been outstanding,” said Morris. “We’ve had a very high return and repeat rate, but more importantly, we brought 60% of people into private brands that weren’t there yesterday.”

The latest consumer price index data demonstrates overall food prices were up roughly 3% in September from the previous year. Meanwhile, 70% of Bettergoods products are priced at $5 or less.

Walmart is also offering a number of other holiday items, like cakes starting under $20. Some of their baked goods come with interactive features like a Dr. Seuss-themed cake with a door that opens, or candy and gumballs that pour out of the cake like a piñata when cut.

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Katie Miles is the brains behind the store’s sweet treats as the senior product development manager for bakery. Her team has developed a Dubai-style chocolate cake, a nod to the viral 2024 social media trend. Miles says every family should be able to afford a special cake to celebrate the holidays while staying within their budget.

“We’re trying to make entertaining easy, and dessert is no exception,” said Miles. “When you’re doing your holiday spread, you’re going to have leftovers. We want to be able to utilize those leftovers, so there’s no waste.”

Her team is sharing new ways for customers to entertain with what they already have. For example, Miles used a leftover pumpkin pie to create a hushpuppy dish with pancake batter, served with a side of caramel sauce.

“The [holiday] season can be very overwhelming for people sometimes,” said Denise Wright, Walmart’s vice president of private brands in food. “And our goal is to really solve problems for our customers and reduce that stress level.”