Private label

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Swedish grocery store where private label products (under the brands Hemköp and Eldorado, Axfood) are placed along with other brands such as Knorr (Unilever) and Blå band (Campbell Soup).

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.

[edit] 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 cannot afford their own private labeling.
• Copycat private labels - brands owned by a retailer which use similar trade dress, i.e. packaging as a leading national brand.
• Credit cards - The retailer's name/logo and branding makes up the 'look' of the plastic card (as opposed to it being a [MasterCard] credit card, though co-brand cards also exist^[1]). Credit service on private-label cards is often provided by a third-party issuer as retailers continue to outsource their in-house programs. ^[2]

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.^{[citation needed]} 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.^{[citation needed]}

Some grocery chains now sell primarily private label products. Examples include Trader Joe's and the European grocery chains Aldi and Leader Price.

[edit] 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. ^[3]

[edit] See also

• White label product

Private Label Europe is Europe's magazine for the private label sector in Europe

[edit] References

Private Label Europe is the European industry magazine for the private label sector.