Smart Partnering Yields Profitable Innovation

This is the second article in a series introducing the new magazine Global Retail Brands. Throughout the week we will feature one article a day from the new publication – In this article Koen de Jong, Managing Director at International Private Label Consult and the author of last years hit Private Brand book Private Label Uncovered discuss partnering for profitable innovation.

Koen de JongSmart Partnering Yields Profitable Innovation

Not too long ago we were asked by one of our clients to make a full analysis on a European scale of a few selected categories. The task included to reveal the manufacturers behind private label products supplied to major retailers in the EU. As the name of the producer is usually not printed on the private label packaging it was quite a challenge to find out.

A new world opened up for me as many more well known brand manufacturers then expected appeared to hide behind retailer brands. Of private labels found at Aldi, Coop, Edeka, Leclerc, Mercadonna and Carrefour, names were revealed like Nestlé, Mars, Reckitt Benckiser, McCain and Unilever. On the websites and annual reports these manufacturers will never reveal such information, they will not admit to produce private labels. On the contrary.

The question is however whether brand manufacturers will offer the retailer a same service as the ones that supply nothing but private label. After all the business model of a dedicated private label manufacturer differs fundamentally from the one of a brand manufacturer.

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