Private Label the Powerhouse Behind Profits

The largest grocery store chain in the United States recently announced its earnings. Profits were up almost 3.5 percent.  What is most striking about the numbers is not the increase in revenues and profits, but that more than 25 percent of the total revenue is a result of private label products.  The private label category is the fastest growing for the entire chain.

At Mont Blanc Gourmet, we are experiencing the same thing. Our lab is developing more and more private label products for our customers, and those products represent the fastest growing part of our sales.

We create private label products for well-known, well-established consumer brands, enabling these national entities to effectively extend their brand identity into more aspects of their operations.

One customer offers to consumers a private label retail bottle of chocolate syrup that is the same product they use for making their mochas.  Another client supplies its franchise partners with proprietary products to ensure consistency in drinks served in stores that they don’t operate.

CoffeeTalk, a major specialty coffee trade journal, published a private label article in its September issue entitled “Build Your Own Brand through Private Labeling.”

With both the foodservice and retail packages, Mont Blanc has experienced significant sales increases in the past year.  The private label trend is strong and growing.  In tough economic times, it makes sense to act on the strong trends.