Private Label

Topics: Private label, Brand, Marketing Pages: 4 (1201 words) Published: May 14, 2013
Private label products or services are typically those manufactured or provided by one company for offer under another company'sbrand. 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. Richelieu Foods, for example, is a private label company producing frozen pizza, salad dressing, sauces, marinades, condiments and deli salads for other companies, including Hy-Vee, Aldi, Save-A-Lot, Sam's Club,[1] Hannaford Brothers Co.,[2] BJ's Wholesale Club(Earth's Pride brand) and Shaw's Supermarkets (Culinary Circle brand).[2] Another prominent example is the Cott Corporation, which manufactures private-label beverages for many supermarket chains. McBride plc is an example of a European based provider of Private Label Household and Personal care products. -------------------------------------------------

Private Label Manufacturers Association
The Private Label Manufacturer's Association (PLMA)[3] categorizes PL manufacturers into 4 main categories:[4] 1. Large national brand manufacturers that utilize their expertise and excess plant capacity to supply store brands. 2. Small, quality manufacturers who specialize in particular product lines and concentrate on producing store brands almost exclusively. Often these companies are owned by corporations that also produce national brands. 3. Major retailers and wholesalers that own their own manufacturing facilities and provide store brand products for themselves. 4. Regional brand manufacturers that produce private label products for specific markets.

Retailers have extended the concept of private label to identify a brand with a store, a concept known as the store brand. This can be a far more profitable business than selling...
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