Private Label Foods! Better than Branded?

Private Label Foods are being "re-imagined!" No longer seen as the “Cheap & Sweet” or “Stack it high and sell it cheap” products they used to be! Consumers want more!

With the rapid growth in popularity in the US with retailers like Trader Joe’s and Aldi, who have, in their own brands, been able to market great tasting and even healthy food products, other retailers are starting to take notice! Certainly, shoppers are still looking for the value and low-cost aspect when buying a private label food product, but now are less willing to move the needle too far away, or at all, from the comparable branded products!

First & foremost, consumers what Products that Taste Good! Trader Joe’s and Aldi, with unique and non-traditional private brand products, have brought a level of quality and sophistication never before seen on the store brand aisle! The more traditional supermarket formats, as well as Convenience Store, Club, Mass, and Drug Segments, have been slower to follow this trend. To these retailers, cost ahead of quality has always been marketing stratagem to follow, but are now beginning to see the opportunity to improve on their bottom line by improving on what they offer on the shelf! Even the Dollar Segment, which for years has embraced a “cost first” approach to marketing food items, is beginning to see ways to draw I a new customer demographic into their stores, by offering good store brand food products at a good value.

Secondly, Convenience & Portability have become an important consideration in creating new products for private brand foods. "On-The-Go" and easy to eat are becoming vital in considering product formats and packaging, moving away from jumbo size commodity staple products of the past. Additionally, own brand products providing "Wellness", or a positive net footprint on their health, are factors retailers and manufacturers must now consider when creating new products under their labels. Shoppers want foods, including private brand foods, that give them a sense of security that what they are eating is good for them. Foods that gives back!

Finally, consumers are now looking for private brand products that now have an "Artisan" or "Craft" appeal. Sometimes, even to the point of "Urban," or a sophisticated level experience. This has been a factor for both Trader Joe’s and Aldi that has contributed to their success with the store brands.

The bottom line is, traditional retailers are quickly having to transform and adapt their own brand product portfolios to keep up with the rapidly refining tastes of todays consumers! Amazon’s acquisition of Whole Foods Market along with other retailers, such as Meijer and Target, partnering with grocery delivery services to provide shoppers with home delivery or curb-side pickup, have forced food retailers to rethink how they will stay relevant. A diverse and compelling Private Label can be that point of difference.

This re-imagination of the Own Brand Products by traditional retailers is not something, however, they can do alone. They need the help, expertise, and close partnership with manufacturers in private brand foods to be able to develop and execute effective new products and strategies. The character and composition of today’s private brand manufacturer needs to be one of agility and speed to market to promptly create unique & innovative products that distinguish a retailer’s brands. “Me too” products no longer work!

Private label partners must now be able to think ahead of the curve and identify opportunities for own brand innovation. They must then translate those products to market more quickly for their retail partners, reducing the formation timeline for these items. Retailers and manufacturers must work closely together in collaboration to deliver innovative and intriguing products that keep the consumer coming back for more!