A simple definition: Private labeled products are products that are manufactured by one company for offer under a different company’s brand.
What is private labeling?
Over the last 15 years, demand for private labeled products has grown tremendously. Products across every category are now available with private label branding.
Private labeling is when a company selling a product, be it a grocery chain, food service supplier or wholesale distributor, will label it with their own exclusive brand. Sometimes, the brand may contain the store’s name, sometimes it may not. Private labeling allows the distributor to control the marketing of the product, and all the while, strengthening their company name in the eye of the consumer.
Private labeled products, though they may display the store’s brand, are not always manufactured by the store’s own facility. Instead, products are most often manufactured by another brand name competitor who is experienced, has a full-scale production facility set up, and is already successfully selling products of their own.
How does private labeling work in the olive oil industry?
Distributors and grocery chains looking to sell their own brand of olive oil will contract with a supplier who can package and label their product, and ship it to different distribution points. Suppliers may be either located in the US or overseas.
Once products and packaging sizes are chosen, the next step is to receive a quote from your supplier and have your marketing department create labels that you would like to use. Finally, you will sign a supply contract with your new olive oil manufacturer to begin receiving your exclusive inventory.
Centra Foods currently offers private labeled olive oil and olive oil blend products for the food service and wholesale industries.
Topics: Food Service