Years ago store brands didn’t always carry the status of national brands. There is no denying the fact that today’s consumers are looking for a more personal connection to the products they pay money for. This is why the need for a private tagged food companies in India was realized.
There are manufacturers specialized in the development of their own Private label cereals. Their products are manufactured in a location where the best food grade materials and state of the art machines work at their best. They have entered into the space in a large way.
Like any new other product private label entry face increased competition within a group. This leads to descending pressure mutually on wholesale and retail prices. Private labels provide higher margins than national brands.
Now what is Private Label (PL)?
PL is when a product is manufactured by one company so that another company can place their brand name or tag on the finished product. PL products too are termed as private label branding, store brands and at times as private-label goods.
Just to confirm; the next time you are in the breakfast cereal walkway of your favourite grocery store; just spend a little time and read all of the names on the cereal boxes. You’ll possibly find a number of different types of cereal with the tag of the grocery store on the outer surface of the box. The product you generally see on the shelf is by and large manufactured by another company. The grocery store, however “private label” the products.
A variety of flavours and sizes are available for Private label cereals
1. Low Fat Muesli Cereals
2. Meal Replacement
4. Special Dietary Cereals ( ie. Unsweetened, Gluten Free etc.) Fortified Cereals
With the inclination in consumers modifying their shopping habits, the requirement to offer quality produce at reasonable price has increased.