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Private label Products or Service s are typically those manufactured or provided by one company for offer under another company's Brand . 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.

There are different kinds of private labels:
  • Store Brand s - The retailer's name is very evident on the packaging.

  • Store sub-brands - Products where the retailer's name is low-key on the packaging.

  • Umbrella Brand ing - A Generic Brand , independent from the name of the retailer.

  • Individual brands - A name used in one category, this is only used to promote a "real" discount product line.

  • Exclusive brands - Again a name used in one category, but to promote "added value" products within the category

  • Distributor brands - Large . These brands are typically seen in non-chain independent restaurants and stores that cannot afford their own private labeling.


There has been a significant increase in private label brands in the recent years worldwide. In Europe, private label goods now account for about 45% of products sold in supermarkets, compared to 25% in the USA. Wal-Mart, for instance, has a 40% private label representation in their stores. Pacific rim countries, such as Australia, Singapore, and Japan, also have significant presence of private labels on store shelves.

Historically, private labels were seen as low-priced, low-quality products. In recent years, however, companies have started using private labels to market higher quality items, and many believe high-quality private labels will increase their presence.

The concept has recently been extended to written text. The web is now awash with articles known either as 'Private Label Articles' or 'PLR (private label rights) Articles'. These are bought and sold in large volumes in order to quickly populate websites to attract traffic from search engines.

Just as with private label products were seen as low-priced and low quality products, so too was the PLR Article industry, which in the recent 12 months has improved drastically with the quality of content available.

The articles are presented as though created specifically for the site concerned. There is also now software available to automatically generate unique permutations of these articles.


ALDI

German chain Aldi is notable for the fact that the vast majority of its sales worldwide are of private label products.


2007 PET FOOD RECALLS

See Also: 2007 pet food recalls


In 2007, there was a recall in the United States of more than 60 million cans of pet food sold under more than 100 brand names made by Menu Foods. The mass recall lifted the curtain on a common practice in consumer products that competing brands are often made by the same manufacturer. However ingredients, designs and quality may differ substantially among the labels made under the same umbrella. 101 Brand Names, 1 Manufacturer, Wall Street Journal, Vol CCXLIX, No. 108, May 9, 2007, p. B1


EXTERNAL LINKS




EXAMPLES OF PRIVATE LABEL MANUFACTURERS

Store Brands: (Products distributed and sold using the store's name)

Private Label Manufacturers
  • Topco ( Skokie, Illinois )- Brands- Food Club (moderate price), Value Time (budget) Available in several intermediate grocery chains. Sometimes produces Store brand products as well.

  • FOSFA ( Breclav, Czech Republic ) - producent of laundry detergents and cleaners specialized in private label manufacturing.

  • Associated Wholesale Grocers, Inc. (Kansas City, Kansas)- Brands- Best Choice (moderate), Always Save (budget). Available at intermediate grocers as well as K-Mart.

  • Huish Detergents, Inc. - Manufactures Store Branded laundry detergents, fabric softener, bleaches, and other household cleaners. They produce laundry detergent for Wal---Mart, Costco, Sam's Club, Sears, Walgreens, Albertsons, Lucky, H-E-B, Safeway/Von's/Pavilions, Stater Bros., and Ralph's/Krogers.



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