Private Label

Private label is a product manufactured for sale under a retailer's own brand name (Great Value at Walmart, 365 at Whole Foods, Kirkland Signature at Costco, Trader Joe's). The manufacturer behind the label is usually a contract manufacturer, sometimes an existing branded CPG company supplementing its own brand business with private-label runs.

Private label has been the fastest-growing segment of US grocery for the last decade. Roughly 25% of US grocery dollars now go through private label, up from 15% in 2015. Discount channels (Aldi, Lidl) run 80%+ private label. Premium retailers (Whole Foods, Wegmans) use private label as a quality differentiator, not a price one.

For a CPG company, doing private-label production for a major retailer is a strategic question with no obvious answer. The volume can be enormous (a single SKU at Costco can equal the brand's entire branded business). The margins are thinner, and the brand effectively trains a competitor. But the line economics often work better than going dark on excess plant capacity.

The roles that handle this are Director of Private Label or Director of Co-Pack Sales, sitting between the brand's own commercial team and its plant operations. The skill is selling capacity, not selling product.

Roles where this matters: Operations, R&D, Sales, GM.