Today’s private label dairy products are aiming for differentiation to help drive retailer loyalty.
Many of today’s dairy processing companies are involved in the production of private label products. Quite a few of them produce products for retailers solely to use excess capacity. Others specialize in private brand production instead of on the development of their own brands. Still others are retailers that operate their own dairy plants.
Private label products should be of interest, too, for dairy processing companies that concentrate only on their own brands. After all, these products continue to impress each year in terms of their dollar and unit share. According to the New York-based Private Label Manufacturers Association (PLMA) — based on data from NielsenIQ for the 52 weeks ending Dec. 26, 2020 — store brands now account for 18.1% of dollar sales in supermarkets and 21.5% in mass/club/dollar stores. And they represent 22.3% and 25.5%, respectively, of unit sales.