Popularity of Private Labeling On the Rise

by Christine Hronec

In today’s day and age, the introduction of new nutritional supplements to the market is no longer monopolized by industry giants such as Kellogg’s and Optimum Nutrition. Dietary supplement retailers are turning towards private label manufacturers to utilize their excess production capacity, expertise, and product knowledge to provide an edge over national brands [1]. Whether the finished product will be sold online, at a specialty health store, in a smoothie bar, through gyms/personal trainers, or for exclusive distribution through a national retailer (i.e. Walmart, Costco, Target, etc.), there are many advantages to private labeling for retailers [2].

The ultimate advantage in private labeling is control. Being able to determine every element from pricing, marketing, distribution, profits and overall personalization of a brand is the key reason to take the plunge and introduce private labeled manufactured goods. Whether a proven product is being private labeled or the formulation is being customized to address specific niche markets, the popularity of private labeled products is definitely on the rise. A Food Marketing Institute study in the U.S. found that retailers earn a 35 percent gross margin on store-branded products compared to 25.9 percent on comparable nationally advertised brands [3]. Recent examples of popular private labeled nutritional supplements include the following brands:

Private Labeled Brand Link
Jillian Michaels Natural Whey Protein Powder http://www.walmart.com/ip/Jillian-Michaels-Natural-Whey-Protein-Powder-Chocolate-14-oz/13284386
Tone It Up Perfect Fit Protein http://perfectfitprotein.com/
Shakeology http://shakeology.com/
Living Well Montel Hemp Plus Superfoods http://www.amazon.com/Living-Well-Montel-Superfoods-Servings/dp/B003IU9YUG
Kardashian's Quick Trim http://quick-trim.info/
Dr. Mercola http://products.mercola.com/
Elizabeth Hasselbeck's NoGii http://www.nogii.com/
Isagenix http://www.isagenix.com
The Biggest Loser Protein Powder http://www.nbcuniversalstore.com/the-biggest-loser-protein-powder-10-oz-chocolate-deluxe/detail.php?p=271433
Beach Body® www.beachbody.com

[1] • ^ plma.com
[2] • ^ “Store Brands Drive Differentiation and Profit”. storebrandsdecisions.com.
[3] http://royeldealtime.com/Nulled/pages/Advantages-of-Private-labeling.html

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