Green Mountain Coffee and Costco have struck a deal to create private label coffee packs for the bulk retailer. While Green Mountain is still reeling off the success of its single-serve coffee cups in the United States, used primarily by Keurig coffee machines, private label products are also experiencing a rise in sales and demand.
MSN has reported that many private labels are “cheaper” than name brands, but offer the same amount of quality. This is due to retailer’s increased control over how the product is sourced and packaged, as well as the quantity. Where name brands will have set standards in place that retailers will need to adhere to, private labels allow the businesses to supply demand while creating cost-effective product.
In addition, research has shown that private label sales have increased by 40 percent in the U.S. since the economic downturn in 2009.
“Undoubtedly, uncertain economic times are a major factor in the growth of private label, but it is the increased sophistication of stores’ own brands that has helped them retain customers,” Bob Berkey, from Accenture’s consumer goods and services department, said in a press release from Food Product Design. “Consumer goods companies must create a clearly defined private-label strategy that understands the unique attributes that drive preference and loyalty in their consumer, engages with them across multiple channels and creates an excellent customer experience.”
As private labels continue to see increasing sales in many stores, companies would be wise to begin implementing these products into their inventories since the economic climate is still unstable. By investing in a Primera LX900 color label printer, companies can create high-quality custom labels for private products that can help them capitalize on this rising consumer demand.
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