Special Report: Private Label Merchandising
The swift rise of private labels, projected to nearly double in market size from 2024 to 2030, signals a major shift in retail dynamics that could challenge national brands’ long held position on store shelves. With private labels now accounting for more than 20 percent of consumer spending and nearly 24 percent of units sold in the US, stakeholders are tasked with staying one step ahead to remain competitive while simultaneously staying inventive, offering quality and differentiating while consumer trust and preference for store brands is steadily rising.
Private labels have rapidly shed their “budget-only” perception, now competing across multiple categories and offering deep savings to consumers, anywhere from 21 percent to 59 percent less than national brands. Not only are private labels outperforming on price, their level of quality and flavor appeal are drawing in consumers who are becoming less loyal to national brands—even the brands they grew up with.
The compelling financial advantages of private labels—delivering 25-30 percent higher gross margins, manufacturing costs 40-50 percent lower, and even up to 50 percent more profit in certain categories—resonate strongly with retailers and incentivizes them to turn their attention towards store brands which are proving to become a strategic, profitable alternative to national brands, according to media reports.
“We take pride in our collaborative approach with retailers, utilizing our specialization in ketchup and BBQ to transform their visions into successful product concepts,” Renee Hicks, Director of Private Brands for The Fremont Company previously said. “Our process begins with understanding the retailer’s goals and gathering insights about their customers’ preferences. We then pilot these concepts into practical, scalable operations that align with our retailers’ branding and efficiency requirements.”
“We collaborate closely with our retail partners to understand their brand identity, customer base and innovation goals,” CEO Allen Benz said earlier this year. “From there, we co-develop snack concepts that are tailored to their strategy—whether it’s a high-protein plant-based chip, a gluten-free puff or a low-sugar confection-style snack. We bring unmatched expertise in functional ingredient systems, especially plant-based proteins, and guide retailers in launching products that truly stand out on the shelf. Our flexibility and speed-to-market make us a go-to partner for forward-thinking retailers seeking to differentiate their snack offerings.”
“Since olive and vegetable oils are a commodity, the best way to work with retailers is to offer products that reflect a cost savings. Many times this comes in the area of unique product design and packaging savings,” Mark Coleman, Senior Vice President Global Sales at Catania Oils previously said.
The Fremont Company relies upon data analysis, market insights and trend evaluation to build strong retailer partnerships, focusing on supporting and promoting private brands to help give their partners a competitive advantage. “By analyzing brand growth trends, scanning relevant data and leveraging our deep market knowledge, we develop strong partnerships with retailers who actively support and promote their private brands,” Hicks said. “We consistently introduce innovative elements—be it through flavor enhancement, sustainability initiatives or operational efficiencies—that provide a competitive edge for our partners’ products.”
Innovation drives Snack Innovations’ private label success, with dedicated R&D teams continuously exploring emerging ingredients, proteins sources and appealing flavors to stay ahead of market trends and consumers’ short attention span. “Innovation is at the core of our private label success,” Benz said. “Our R&D and culinary teams are constantly working with emerging ingredients, new protein systems and flavor innovations to keep our partners ahead of the curve. We don’t just follow trends—we help shape them, offering retailers the ability to launch exclusive, competitive snack items that rival any national brand in both quality and innovation.”
Catania Oils consistently delivers competitive private brand products via innovative packaging and in-house bottle blowing to enhance efficiency and cost-effectiveness. “For private brands, a competitive product is a must,” Coleman said.
