The coffee brand sells to ice cream manufacturers to make coffee-flavored ice cream. Private labeling works well for products that add value to other products. That marketing point helps to drive additional sales from their built-in audience. The brands using the coffee can say that it benefits farmers in another country. It also makes it easier for the coffee company to pay the farmers who handle the coffee plants. The increased revenue helps to reduce costs across customer-facing product lines.
That coffee brand doesn’t get mentioned on the final product’s label. Let’s say a coffee company sells its coffee to other companies so that they can use it as an ingredient. The products may be sold independently, or to support other products. The manufacturer isn’t given any credit on the label. How Does Private Labeling Work?Ī private label manufacturer works with a brand to sell products under the manufacturer’s name. What’s more? The rate is growing faster than national brands. If it’s a generic product in a major retailer or a store brand, it’s likely a private label productĪccording to the Private Label Manufacturers Association, the private label market share accounts for nearly 1/4 of unit sales in the United States. Grocery stores also use private labeling. Other major retailers like Target and Walgreens also have their own private label brands. Presto!: A household goods line that includes paper towels, facial tissue, and toilet paper.Amazon Elements: A line of vitamins and supplements.Amazon Essentials: Men and women’s clothing.AmazonBasics: A line of products that includes household goods and electronics.Mainstays: Walmart’s line of home furnishings and decor.Īmazon has over 100 brands across several product categories, including:.Equate: Walmart’s store brand of health and beauty products.Great Value: Walmart’s store brand food and grocery products.Walmart has several 3 major brands, including: If you’ve ever shopped at a big box retailer, you’re already familiar with some big-name private label lines. Once they’ve been produced, the products are shipped to the retailer for sale.įrom the consumer’s point of view, the private label products are the company’s “own brand” of products. From its specifications to how it’s packaged, and everything in between, you choose it all.
The retailer controls everything about the product. It is sold under a retailer’s brand name. Choosing Products to Create Private Label LinesĪ third-party manufacturer produces a private label product.
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