Importance Of Private Label In The Food Industry

Getting into the food industry by far is the most, though at the same time thrilling experience a businessman can have. On one hand, the industry is thriving with opportunities and on the other hand, surviving cut-throat competition with labeled brands becomes quite a handful. Hence private labeling gives small-scale as well as large-scale retailers an edge in terms of cost-saving and better supervision. Private label products are the products manufactured by one company but are sold under the brand or label of another company. Private label has different branches in the food industry and they are as follows-

a. Private label food products and private label food-

Private label food products and private label food are the type of products that are manufactured in some other company but are to be sold under the label of sponsoring company. The key ingredients, method of preparation, type of quality, quantity, and design of packaging all are determined by the sponsoring company. This method is being followed by many retailers. Food products like namkin, spices and dal, pickles, gourmet chocolate, and so on, are prepared in this manner.

b. Private label food products wholesale-

Private label food products are produced by some other enterprise and sold by some other sponsoring enterprise. In this context private label food products wholesale, the manufacturer makes "to be labeled" food products in bulk and put them out for sale for retailers who can make those food products, like their brand.

Hence, private label food products are popular among retailers due to the save in cost and effective management.

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