Private Label Brands: Catch the new wave before it sinks you!

About three months after the world greatest private label trade show, PLMA 2018, we would like to take a look back and share some of our thoughts, facts and ideas with you. We’d like to offer our experience-based thinking to all of you readers (wholesalers/distributors/retailers or business professionals) who might be interested in PL (private label) brand trend happening globally. What can you do about it?

PL might sound complex, but the reality is, with the right supplier as a partner you will go through this process smoothly, successfully and relatively fast. Complexity depends on supplier’s experience and knowledge of PL as well as deep understanding of production capacities, costs, package and logistic optimization etc. Thus, be careful when you make your decision. It’s vital for your PL brand success. We’ve been through this process many times and we’ll try to share our experience with you as simple and useful as possible.

In this post we will present some data on PL trends globally. We would like to show you the incredible potential you should start exploiting now in case you still haven’t. It’s important to process the numbers in order to better understand the reasoning we will share further in our future posts where we will speak about topics like: the reasons to launch a PL brand despite the fact you are not a retailer, verifying your readiness for a PL brand launch, what it takes to launch a PL brand, how to make PL brand supplier evaluation and many other PL brand related challenges. Now let’s go through the key numbers.

PrivateLabel_STATS2018_infographic

PL brands keep growing across Europe. According to Nielsen data the PL brands now “stand at 30% or above in 17 countries” out of 19 countries tracked. Consumer confidence in PL brands keeps getting stronger. Following latest Daymon Private Brand Intelligence Report 2018, consumers look for more solutions rather than individual brands (US market shows the private brands outpaced national brands by about 8 times with an increase in sales by 4% compared to an increase in sales of national brands of 0.5%). Furthermore, Daymon’s report claims that 74% of surveyed consumers say private brands are better value for the money than national brands; 53% say they shop at a store specifically for its private brand; 59% believe private brands offer greater variety; 85% trust private brand at least as much; 84% believe in quality of PL brand at least as much and 81% buy PL brands on every or almost every shopping trip. These are some serious numbers to look at, especially if we take into account PL roots in the food industry.

A brief timeline: when initially introduced (in the 50s), PL food brands were considered as a cheaper alternative to regional, national or international brands with significantly lower quality and lack of variety. This consequently led to a small market share. Then, in the 70s their share began growing, but still their quality was perceived as inferior. The focus was on good margins only. Next significant period to look at is 2007-2012 when the PL brands experienced robust growth. Normally, in times of crises, consumers cut expenditures, making PL brands sales flourish. As the economy was improving, there was a slight decline in PL brands sales due to various reasons: 1) more money in the pocket made consumers switch back to their favourite brands; 2) more money helped national brands too, allowing them to aggressively respond to the rise of PL brands with heavy promotions and marketing activities all over the world and 3) very important change happened: PL brands started to invest in quality and variety, thus they slightly increased prices. This is when PL brands took a new direction: quality and innovation fight and not price fight only.

From today’s perspective, we see it was the right direction to take because they reached a new era in their evolution. Consumers now compare PL brands to A brands (you can check a recent interesting article on this topic here).  If they kept being the cheap option with limited offer then in good times, with more money to spend, consumers would have totally abandoned PL brands or they would have brought PL to a survival stage at least. Instead, we see a new rise on the horizon and a serious threat for the A brands.

A completely different image of PL brands is in front of us each day we go shopping: beautiful, attractive package designs with high quality content, in varieties that many of the A brands do not offer and all this at more competitive prices as compared to A brands. PL stopped being a finance tactic only. It’s become a strategy for market differentiation, creating and fostering consumer loyalty and driving consumer satisfaction. Even though there is still plenty of PL brands who maintain the image of low cost alternatives to national brands and this is totally fine, yet it’s a fact that the world of “premium” brands has opened the doors to PL brands too – something that probably could not be imagined back in the 50s.

Today we look at PL as a source of innovation and flexibility at competitive prices. That is why we recommend you to start developing your own brands among different product categories soon, just before the crowd arrives.

The facts above were shared in order to motivate you walk further and explore the PL brand opportunities. In our next post we will tell you why you should launch your own brand even though you are not a retailer. We as producers of PL brands have the chance to see this trend happening among wholesalers and distributors right in front of our eyes. Don’t waste time and get on board. We will help you pave the way to the next top brand of yours hitting great sales numbers globally!

 

We are always eager to hear your feedback, comments, suggestions and proposals on how to improve. Feel free to drop us an email and ask us any question that might pop up while thinking about this subject.

 

 

 

Advertisements

New! Double cream cocoa sandwich cookies.

Here is a sneak preview of our new sandwich cookies with double cocoa cream. The first package we will introduce is a 300g box with 20 individually wrapped cream cookies.  Thus, you have 20 fresh sandwich cookies (each 15g) – a very practical solution. Whether you like to sweeten your kids’ lunch box, or you like to share it with your family, friends, or colleagues, this delicious pleasure will make your day.

Twini Family Pack 300

IMG_7995

Free invitation codes for PLMA 2018 Amsterdam

We would like to invite you to send us a request for a free invitation code for this year’s PLMA (29-30 May) in Amsterdam. All you need to do is to contact us on sales@viaprom.com.mk and tell us your request. We kindly ask you to include “Free invitation code” in your email’s subject line.

Please kindly note that it’s a limited time offer due to the limited number of codes we have. It’s a first come first served basis.

Two additional notes:

  1. Guest Registration closes on 17 May. The Special Invitation is not valid after this date.
  2. Each Registration Code is unique and can only be used once.

As a quick reminder our stand info for PLMA 2018 Amsterdam is following:

29-30 May PLMA 2018, RAI Exhibition Centre, Amsterdam

FOOD SECTION
RAI Europa Complex / Hall 3
Stand number: F-4099

Via Prom on PLMA 2018 (29-30 May) in Amsterdam

Dear readers, we would like to inform you that for the fifth consecutive year Via Prom will present its products at PLMA trade show in Amsterdam. The event will take place in RAI Exhibition Centre, 29-30 May. 

Traditionally, Via Prom is putting efforts to support the New and Innovative Product Section which is part of PLMA by developing new product recipes. Again, this year some of our innovative proposals were selected and will be presented in the New Product Expo Section. We are excited to show you our innovations at our booth.

This year, our focus will be put on our sandwich cookies line. Via Prom aspires to become one of the leading producers of sandwich cookies, or cream cookies in South Eastern Europe. We are kindly inviting you to visit us and check out our offer. We are more than happy to discuss all types of possibilities for cooperation.

You will find us on the following location:

RAI EXHIBITION CENTRE, AMSTERDAM (FOOD SECTION)
RAI Europa Complex / Hall 3
Stand number: F-4099

Below you can find a sneak peek of our stand presentation. We are looking forward to welcome you at our booth.
Twini_Saem_Design

Meet twini – the most delicious sandwich cookies

IMG-8886

We are so excited to launch our new cookies brand line named twini, offering one of the best sandwich cookies taste in Europe. The twini brand line will include different cream and cookies flavours, but all of them would keep that specific taste our unique recipe provides.

Below you can have a quick look at three twini flavours: twini original, twini double vanilla and twini double cocoa. Soon we’ll introduce to you twini choco, twini strawberry, twini mint, twini lemon and many many other twini sandwich cookies flavours.

And guess what? We will be launching a twini sugar free line too. Stay tuned 🙂

Twini_Original_Mockup2

Twini_Double_Vanilla_Mockup2

Twini_Double_Cocoa_Mockup2

Via Prom’s innovations to be presented at PLMA 2017

Every year Via Prom’s R&D is developing new and innovative products specifically to be presented at PLMA trade show. This year again, Via Prom will take part of the New Product Expo where the latest innovations by exhibitors are displayed. Four out of four submitted products were selected by PLMA’s Committee and will be presented in the New Product Expo – Idea Supermarket area.

We are inviting you to check out our latest innovations: it’s a unique recipe of wholegrain cookies with chia and black seeds and no added sugar. Healthier and delicious. Stop by our booth to try it.

As a quick reminder our booth will be positioned on following location:

16-17 May, PLMA 2017, RAI Exhibition Centre Amsterdam
FOOD SECTION,
RAI Park Complex / Hall 8
Stand number: F-8501

See you in Amsterdam! 🙂