Private label food manufacturing is a win-win for retailers and consumers. Retailers benefit from the opportunity to extend their brand at an affordable cost while also protecting their brand integrity. Consumers, on the other hand, get an expanded selection of products at a lower price point. In this article, we’ll explore private label manufacturing in food retail and why this trend is growing rapidly. Explore the ins and outs of private label food manufacturing so you can decide if it’s right for your business.
How Does Private Labeling Work?
Private label products are those manufactured by one company and then sold under another company's brand name. Sometimes this is known as a white label product. For example, a private food manufacturer may make cereal that is then sold under a retailer's brand name. The retailer is the private labeler, and the manufacturer is the private food manufacturer.
The main difference between private label products and brand products is that private labelers do not have their own product lines or brand names. They simply purchase products from manufacturers and relabel them with their own brand. Private labelers may also add their own packaging or design to the products they purchase.
Private labeling can be a great way for companies to get started in the food manufacturing business without having to invest in their own product lines or brands. It can also be a good way for companies to expand their product offerings without incurring the costs of developing new products.
What are Private Label Food Manufacturers?
Private label food manufacturers are companies that produce food products that are then sold under a brand or label that is owned by another company. Private label foods are often created to be unique products that differ from those of the manufacturer's regular line of products, and many private label foods are created with the intention of being sold at a lower price than similar products from well-known brands, such as local store brands. Private label manufacturers often have their own manufacturing process and facilities, and they may work with multiple companies to create a variety of private-label products.
What is Co-Packing?
Co-packing is the process of manufacturing and packing high-quality food products into containers at a manufacturing company. A co-packer follows the recipes and processes from its client, who is responsible for supplier relationships, packaging and marketing decisions, and research and development. Co-packing is often used by food manufacturing companies to outsource the packing of their products based on volume or product complexity. This can be a cost-effective way to manufacture products, as well as allowing for more focus on core competencies.
Private Label vs. Co-Packing
When it comes to food manufacturing, there are two main types of outsourced production: private label and co-packing. Both are a type of contract manufacturing that have their own unique benefits. So, what’s the difference between the two?
Private label food manufacturing is when a contract manufacturer creates its own products from scratch. The top private label food manufacturers make it easy for companies in the U.S. who don't have resources to invest in their own manufacturing and R&D processes to become food brands with significant market share within the market. The quality of private labeling allows companies to feel confident in bringing in new products and driving food sales. Products available for private labeling include a variety of products like personal care products, private label food and beverage, and other household products.
Co-packing, on the other hand, is when a company comes up with the recipes for its own food but hires another company to make and package products. With co-packing, a company sells its own products that are manufactured by another company. With private label manufacturers for food, a company sells products from another company as its own.
How to Choose a Manufacturer
There are many private label food manufacturers to choose from, so how do you know which one is right for your product? Here are a few things to look for:
- A reputable private label food manufacturer will have experience in the food industry and understand the unique challenges that come with manufacturing food products.
- The manufacturer should be able to provide a complete end-to-end solution, from ingredient sourcing to packaging and labeling.
- It is important to find a manufacturer that is committed to quality and has a rigorous food safety program in place.
Taking the time to find a reputable and experienced private label food manufacturer will help ensure that your product is of the highest quality and meets all food safety standards.
Private Label Agreements
A private label agreement is a contract between a manufacturer and a retailer that allows the retailer to sell products under their own brand name. These agreements are often used by retailers who want to sell products that are similar to those already being sold by other brands, but at a lower price. Private label agreements can be an effective way for many companies to compete with larger brands while still offering customers quality products at a lower cost.
Benefits of Private Label Manufacturing
There are many benefits to having a private label brand, including the ability to develop new foods and beverages without the need for extensive product development, access to an existing manufacturing partner and supply chain, and the ability to sell private label products to an existing customer base. Private label products can also be a great way to expand existing product lines and reach new markets.
Finding a Reliable Private Label Manufacturer
When looking for a reliable private label manufacturer, there are a few things you can do to make sure you're getting the best quality product possible. First, research different private label manufacturers and compare their products and services. Next, read online reviews of the manufacturers you're considering to get an idea of their reputation. Finally, contact the manufacturer directly and ask any questions you have about their products or services. By taking these steps, you can be confident that you're choosing a reliable private label manufacturer.
Contact an Experienced Private Label Food Manufacturer
Private label food manufacturing is a cost-effective way for food companies to produce their own products. They can save money by outsourcing production of their ingredients, packaging, labeling, and distribution to a private label food manufacturer. Private label manufacturing can be done on a large scale or on a small scale, so it can be tailored to meet the needs of different industries and products.
To learn more about the private label food manufacturing process, contact Current Commodity Systems by calling (805) 278-0136 or using our online form. Our team of manufacturing professionals is here to answer any questions you may have and to walk you through the process.