The Best Guide to Private Label Manufacturers in USA
Also known as private labels, store labels are exclusive labels owned by a store/brand. For example, Kraft makes its products under the brand name ‘Planters Peanuts’. But it also manufactures under other private label names.
There are several benefits to this practice. For one thing, you get to market a product to more prominent retailers who sell the product under their brand packaging with more considerable sales potential and broader outreach.
Private labels eliminate the need for complex brand processes that often demand thorough testing, distribution, and implementation. By eliminating the need for memorable branding, manufacturers can save time and money.
Private Labelling for Food/Pre Packaged Product Manufacturers
The global food market for private labels was valued at about 2 billion dollars in 2020. It’s projected to reach $3.5 billion by the year 2030.
One crucial aspect of prepackaged private label food items is the packaging. It’s pertinent to every other industry. Therefore, it’s vital to consider the design elements living on the actual product.
Advantages of Private Labelling Food
Higher Profit Margins
To build a stronger customer base, it’s important to have the right brand personality. Apart from that, product designs and marketing campaigns are also crucial. Anyone who has done marketing and branding would know how expensive these creative endeavours require.
Private labels use personalized branding. The retailer gets the choice to design the packaging, create marketing campaigns, and control the entire manufacturing process. The creator has to give up all this control. You’re paying for the product and its actual cost of production, not the premium brand name or expensive marketing.
Lower Costs of Operation
Because of the strong branding and trustworthiness inherent to private labels, the products practically sell themselves. They don’t need excess advertising for the retailers to fly them off the shelves. Ideally, the product should sell for, at the very least, five or six times the cost of production.
Because of this, it’s much cheaper to manufacture private label products and produce them in higher volumes. Most products with private labels typically receive huge orders from big retail stores. Therefore, manufacturers can benefit from shipping and creating all products for a single destination. Together these factors lead to reduced costs of operation.
Better Brand Loyalty
There was a time when people looked at brand-name products as superior to a private label. However, in recent times that has changed. Today private labels have made a huge name, and they now are often the epitome of high-quality items.
Private labels have to maintain a consistently high quality standard in terms of everything. Mostly it’s because of the superior manufacturing processes and private innovation that goes into product creation.
Because of private labels’ inherently better reputation, they enjoy stronger brand loyalty. Consumers often stay loyal to one particular retail store because they know it’s the only destination to find the desired quality private-label goods.
Market Stability
Consumers today like private labels for their better consistency, quality, and affordability in the long run. Even during economic downfalls, private label products tend to enjoy steady sales. Because of the inelastic and stable markets, manufacturers favour them also since the likelihood of retailers freezing their orders during economic downturns is slim to none.
Top Features to Look for in a Private Label Manufacturer
When it comes to finding a reliable private label manufacturer to fulfil your trading needs, there are certain things you must keep in mind. Such as:
Quality Products + Goods
Start by sampling their products. See if they have maintained quality and consistency across the board. Partnering with manufacturers with sloppy work is the quickest way to fail in this game.
Trustworthiness & History of Success
You can check online resources like Google and other directories to see the success rate. Pay attention to customer reviews. Always look at the history of the manufacturer and their trustworthiness factor.
Understanding of International Logistics + Shipping
If you plan on going global, do you think the manufacturer will be able to keep up with it? What’s their knowledge in the field of shipping related international laws and logistics? Would they arrange for transportation from the port to the warehouse? Logistics can be highly complex, with unusual documentation and paperwork. So, pay attention to their logistics expertise.
Direct-to-Retail Relationships
Ensure that the manufacturer works directly with retailers to allow for better control over product quality and production cost.
ATI’s Expertise in Private Label
Who is ATI?
ATI or American Trading International is an export trading company based in the US that exports food and beverages to more than 80 markets across the globe. Founded in 1995, ATI carries over 26 years of experience in global trading.
It facilitates international trade with utmost cultural sensitivity and global awareness.
ATI specialises in five major US-based food product categories –
- Generic Products
- Name Brands and Value Products
- Food Services
- Bulk Ingredients
- Products Carrying a Private Label
What makes ATI a Great Private Label Partner
ATI works with dedication to ensure uninterrupted brand growth and reputation. The employees at the company carry multicultural and multilingual knowledge, often coming from diverse cultural backgrounds. This experience allows them to work with cultural sensitivity and insight while working with foreign partners. The staff at ATI speaks over 30 languages.
Over the years, ATI has developed more than 30 successful private label brands. This includes large direct retailers as well as importer distributors. With so many accomplishments, ATI is equipped to handle all kinds of private label product development needs.
Bottom Line
For information on Private Label partnerships at American Trading International (ATI), visit us at Aamerican-trading. Interested in working together? Call us at +1 (310) 445-2000.
