Private label Totally Explained

Everything about Private Label totally explained

Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting. They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.

Types of private labels

Store brands - The retailer's name is very evident on the packaging.
Store sub-brands - Products where the retailer's name is low-key on the packaging.
Umbrella branding - A generic brand, independent from the name of the retailer.
Individual brands - A name used in one category, this is only used to promote a "real" discount product line.
Exclusive brands - Again a name used in one category, but to promote "added value" products within the category
Distributor brands - Large wholesale grocers and foodservice purveyors often have private labels, for example the Parade brand of Federated Foodservice and the wide array of private brands of the large food service supplier Sysco. These brands are typically seen in non-chain independent restaurants and stores that can't afford their own private labeling.
Copycat private labels - brands owned by a retailer which use similar trade dress, for example packaging as a leading national brand.

There has been a significant increase in private label brands in the recent years worldwide. In Europe, private label goods now account for about 45% of products sold in supermarkets, compared to 25% in the USA. Wal-Mart, for instance, has a 40% private label representation in their stores. Pacific rim countries, such as Australia, Singapore, and Japan, also have significant presence of private labels on store shelves.
Historically, private labels were seen as low-priced, low-quality products. In recent years, however, companies have started using private labels to market higher quality items, and many believe high-quality private labels will increase their presence.
Some grocery chains now sell primarily private label products. Examples include Trader Joe's and the European grocery chains Aldi and Leader Price.

2007 Pet food recalls

In 2007, there was a recall in the United States of more than 60 million cans of pet food sold under more than 100 brand names made by Menu Foods. The mass recall lifted the curtain on a common practice in consumer products that competing brands are often made by the same manufacturer. However, ingredients, designs and quality may differ substantially among the labels made under the same umbrella.

Examples of Private Label Manufacturers

Store Brands: (Products distributed and sold using the store's name)

Food Lion

Kroger - Kroger uses a three-tier store brand system:
Kroger Value: Lower tier brand; formerly known as For Maximum Value and Cost Cutters even before that. This tier is also labeled bilingually in English and Spanish.
Kroger: Middle tier brand
Private Selection: Upper-scale brand; this is targeted towards customers looking for better quality rather than lower prices.
Private Label Manufacturers

PBM Products - Manufacturer of private label infant formula

Topco (Skokie, Illinois)- Brands- Food Club (moderate price), Valu Time (budget) Available in several intermediate grocery chains. Sometimes produces Store brand products as well.

FOSFA (Breclav, Czech Republic) - producent of laundry detergents and cleaners specialized in private label manufacturing.

Associated Wholesale Grocers, Inc. (Kansas City, Kansas)- Brands- Best Choice (moderate), Always Save (budget). Available at intermediate grocers as well as Kmart.

Huish Detergents, Inc. - Manufactures Store Branded laundry detergents, fabric softener, bleaches, and other household cleaners. They produce laundry detergent for Wal*Mart, Costco, Sam's Club, Sears, Walgreens, Albertsons, Lucky, H-E-B, Safeway/Von's/Pavilions, Stater Bros., and Ralph's/Kroger.

NHK Laboratories, Inc. (Santa Fe Springs, California) - Manufacturer of private label dietary supplements and pharmaceuticals.Further Information

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