Through a special arrangement, what follows is a summary of part of a current article from Private Label Buyer, presented here for discussion.
As national brands have pulled back on the number of new items they've been introducing amid the downturn, there have been fewer targets from which retailers can draw inspiration to develop their own store brand products. But unlike years past, national brands are now not always the category leaders store brands follow.
"Now you're going to see more and more private brands putting out innovative items," said Al Greenwood, director of frozen foods, Daymon Worldwide. "Retailers recognize this as a way to differentiate themselves from their competition."
Mr. Greenwood spoke as part of a roundtable discussion themed "Taking Private Label to the Next Level: Where Do We Go from Here?"
Of course, Tim Sullivan, private brand product manager, Delhaize America said, it takes a good supplier to take a risk in developing unique private label product with no national brand counterpart.
Marc Lessard, manager of product development, Delhaize America, gave an example of such an item developed for Delhaize's North American banners several years ago.
"When I was a category manager in dairy, we developed a private label probiotic granola, and we merchandised it in the yogurt section," he said, pointing out that a large number of consumers who buy yogurt add items to the product after taking it home -- granola, fruit, nuts or something else.
"It's about trying new items that may not necessarily have a brand target, putting it under your own label and taking a chance on something," said Mr. Lessard.
Steve Felts, purchasing manager, Houchens Industries, also believes in creating products with no national brand counterpart.
"When [customers] come to your location looking for your specific brand -- your specific private label -- at that point in time, you're setting yourself apart from [other] retailers," he said.
Mr. Felts added that not only is it a huge compliment when a customer asks a retailer why he or she cannot find a certain private label product at a competitor, it also reveals the direction in which a retailer needs to head in product development.
Discussion Questions: What are the advantages and challenges in developing store brands without a national brand counterpart? Which retailers are doing the best job creating such distinctive private label products and why?