Private Label Products Build Your Brand and Profit Margin

There is no denying the value of a powerful brand name.

Starbucks, Kraft, Tyson, Nestlé® are often cornerstones of a successful foodservice business.  Consumers want what they want in foods, whether it meets dietary or quality standards, but such desires do not have to be accompanied by a brand name. 

Rather, a savvy restaurateur who wants to offer Angus Beef steaks can source these products without having to provide a brand name.  Same can be said for almost every ingredient on their menu.  Simultaneously, we have all seen the success of supermarket and big box private labels, such as Costco’s Kirkland Signature™ and Ralph’s or Publix’s company brands.

Private label products offer significant benefits to include:private label

  1. Lower pricing
  2. Brand building and loyalty
  3. Exclusivity
  4. Higher control of production, marketing, distribution and profits

Private label brands were originally created as a generic product offering to compete with national brands at a lower price.  At first, these lower-priced non-branded products bore the stigma of also being inferior in quality.  Not sporting an established name meant less trust and confidence as branding companies spent millions on advertising and marketing.

Over time, the belief that cheaper connotes inferior quality has disappeared as many private label goods offer the same quality taste as the big brands.  And while private label products tend to be less glamorous, there is no doubt they add to one’s bottom line: Private label is estimated to be 30 percent lower in price than the branded product.

In the world of sweeteners, the inadvertent result of massive brand marketing and advertising actually led to color identification, rather than name identification, as the primary way of choosing a specific type of product.

“Pass me the pink packet,” has replaced asking for the brand name at the restaurant table.  Blue, green and yellow sweetener packets which are positioned in a tabletop caddy possess the same draw and recognition factors as their ubiquitous but flagging brand name alternative.

As with sweeteners, private label products are commonplace and well-accepted across the retail and foodservice spectrum. For the restaurateur, they represent a chance to increase profit due to the high returns on a product that requires a relatively low investment.

Additionally, private labels offer operators a very real opportunity to promote their own brand name and connect with customers by providing them with a quality product at a lower price.

Now private label goods, not the brands, have their own undeniable power. Sugar Foods offers private label sweeteners with low minimums, call today to learn more.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.