Thursday, June 13, 2013

Pirvate Label vs. Brand Name Products



We have all shopped at Wal-Mart, Smiths, or some other local grocer and seen private label brands such as Westerner Family or Wal-Mart’s Super Value brand right next to popular brand name products.  Are these products of less quality? They are, after all, cheaper than the brand name cheese, milk, canned fruit or whatever it may be right next to it. 
Private Label brands, also known as store brands or retailer brands, have come a long way in the last decade. Not only the quality of product but also the packaging of the product has improved. You’ll see private label brands with very similar packaging to its branded counterpart. Turn these packages over and you will see the same similarities on the ingredients label. In some cases these similarities are because the same manufacturer of the branded product produces the private label product. My fiancé works at Darigold, a large Co-Op that produces a variety of brand name dairy products. However, “Darigold” milk, creamer, butter, cheese, yogurt and sour cream are not the only brands they manufacture. Darigold has teamed up with large private label brands to produce their dairy products as well. These store brands include: Wal-Mart’s Super Value, Safeway’s Lucerne, Western Family and Vans IGA. The dairy product is of no less quality compared to Darigold’s brand name; in fact, they use the exact same product and just put the store brand label on the packaging. 
Buying private label is not only advantageous to us as consumes but also profitable to the retailers. A study by the Private Label Manufacturers Association found consumers save 35% when buying private label. Likewise, retailers selling their private label brand gather a 35% profit margin compared to just 25% on brand name items. Nevertheless, given the quality of private label product, we are all guilty of buying the more expensive alternative. This is most like due to brand loyalty, product image, or product packaging. For instance, you will not find cutting edge, innovative packaging on private label brands such as Hiez Dip & Squeeze ketchup package. In any case, private label products are of high quality and a good consumer choice when you go out on your next grocery run. 

No comments:

Post a Comment