In the 1980s, grocery shoppers had two big choices to make while filling their carts. Would they choose tried and true name brand items that were sold in highly attractive packaging and familiar to consumers by their television, radio, and print ads? Or would they choose generic “off brands,” as they were often called, which were sold in plain white packaging with simple black lettering? The two choices pitted a consumer’s aesthetic inclinations against their budgetary sensibilities. Oh, what a dilemma!
Generic products simply listed the item’s name (“Cola”), the ingredients, nutritional information, and UPC bar code. They were devoid of logos, photos and illustrations, and any sort of descriptive words that might entice shoppers. They also lacked expensive celebrity endorsements and pricey promotions. The idea was the marketing savings could be passed on to the consumer in the form of a less expensive product. Yes, they might not have the catchy advertising jingles, slogans, and colorful packaging that the name brands took great pains to perfect, but for budget-conscious ‘80s shoppers, it became an acceptable trade-off.
But how did the products taste and perform? Many believed generics were name brand factory seconds that lacked taste and nutritional value. Ironically, generics were often processed at the very same plants where their name brand counterparts were created. Blindfold taste tests regularly resulted in people not being able to tell the difference between the two. So why bother with the fancy labels? And just who was choosing to spend more on products sold with name brand packaging when the same was offered for less in stark white and black boxes and bottles? Did elves or talking toucans make a product taste better, after all? Was a product more trustworthy if a famous baseball player was peddling it?
By 1984, retail chains realized that the savings of printing labels was minimal. That realization paired well with another thought. Perhaps the name brand loyalists were convinced the pretty packaging ensured a superior product? A new idea began to brew. What if these retailers packaged products produced by name brand manufacturers with their own house/store brand names? What if they ditched the simple black and white and created packaging every bit as fancy as the name brands? They could still sell these products at a lesser cost than name brands by foregoing the marketing and advertising expenses.
A new era was born. Since those early days, privately labeled goods have blossomed into a respectable alternative to name brands, and are often sold in attractive packaging that rivals their famous name brand counterparts they share shelf space with. Just as pretty, but less expensive. Consumers can’t get enough!
Today, privately labeled items are sold in a wide spectrum of products, and in a large variety of settings. Grocery store chains sell just about every kind of boxed, canned, bottled, or bagged item bearing their very own private label brand. Restaurants, delis, coffee shops, boutiques, and many other retailers sell privately labeled products. Shampoo, salad dressings, cereal, canned vegetables, cooking oil, crackers, coffee syrups, chicken wing sauce… the list goes on and on!
The market for private labels continues to grow. In 2014, a Consumers Reports study showed that 93 percent of American women surveyed choose store brands on a regular basis to save money. That same year, private label sales grew 2.5%, while national brands grew only 1.1%. Consumers report they see virtually no difference between the private labels they’re buying and the national brands they’ve given up.
So what does this all mean for label manufacturers? A great deal, actually! Many privately labeled products are produced in smaller batches. Think of a family-run restaurant selling bottles of barbecue sauce, the local steak house with various spices and marinades for sale, or an eye clinic selling bottles of lens cleaner bearing their name. All of these products require labels or packaging. Consumers rely on these labels to inform them of the contents of the bottle, box, or container. What is contained inside? What is the weight or volume of the product inside the package?
In addition to informing consumers about the contents, privately labeled food and beverage labels also carry the oh-so-important Nutrition Facts information as well as ingredient lists. For many, what’s on the back of the label is just as important as what’s on the front! An ever-increasing consciousness about nutritional intake has Americans far and wide “checking the label” and shopping according to what’s listed.
At Label Works, we take great pride in offering enhancements which will help win shoppers and browsers by allowing for truly unique food and beverage labels.
Some of our available options include:
- Barcodes
- Variable Content: Batch Multiple Versions
- Clear Film for a ‘no label’ look
- Foil and embossing to create elegance
- Stocks for refrigerated, frozen or submersible items
- Custom shapes unique to your brand
- Ability to be machine applied
Quite the upgrade from the days of stark white and black packaging, right? We offer sample packs and sales flyers that can be personalized with your distributor’s logo and contact information to help your customers better visualize how snappy their product labels can be!
Throughout the month of May, to highlight our private label possibilities, we’re having a special promotion! We’ll be giving away some privately labeled BBQ products, so get your grills ready! Click here to enter.
We’re here to answer any of your questions! Please contact Label Works at 800-522-3558 to request private label food and beverage label sample packs or click here to download & personalize sales flyers.
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