Private Label Manufacturing in the Food and Beverage Industry – 2011-2012

This report is the result of an extensive survey drawn from Canadean's panel of leading global food and beverage industry executives. It provides the reader with a definitive analysis of the future growth of private label products.

According to survey results, "strategic partnerships with retailers", "lower costs of production" and "reduced promotional costs" are identified by global food and beverage manufacturers as key advantages of private labels to manufacturers. To compete with branded labels and for survival needs, private label manufacturers have entered into long term strategic partnerships with retailers. The partnerships with retailers help manufacturers to decide the pricing component of private label products to compete with leading brands.

Some of the key concerns of private label manufacturers as identified by global food and beverage manufacturer respondents include "competition with national brands", "declining margins", and "efforts to lower production costs". Even though private label manufacturers have grown over the recent years to increase their market share in terms of price, quality and brand loyalty, competition with national brands still remains a key concern.

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