Private label brands have experienced increased sales recently, but that doesn’t mean creating one is easy. “Start-up seems to be one of the largest issues that retailers have in this market segment,” said Lisa Munn, senior account representative, FoodScience Corp. “There is always concern about putting their name out there and wanting affordable, quality products that their customers will keep coming back for.”
Bob Dunn, brand manager, Nuvite, offered this advice to retailers who want to get in the private label business: “Make sure you do your homework. Don’t just look at price. Make sure you are looking at all of the variables: product, packaging, pricing and service. You need to feel comfortable with the private label manufacturer you choose; you are going to be working as a team and building your brand together.”
Erin Silva, MS, RD, technical marketing manager, Vitamer Labs, echoed Dunn’s caution on selecting purely on price. “If the suppliers talk about the great deal they can give you or talk more about price than quality, that’s a red flag. You may want a value line in your store, but do you want your name on it?”
Connie Falkenstein, RD, MS, MPH, director of marketing and education, and Dr. S. K. Dash, president and chief scientific officer, UAS Laboratories, suggested retailers examine a potential private label partner’s past performance before making any deals. “Retailers need to be concerned about companies with little or no track record,” they said. “Retailers need to have reassurance that their partner will consistently deliver on the commitments made to them. Formulations, manufacturing process and packaging are to be watched when selecting a private label supplier. A company’s track record tends to speak for itself.”
Retailers should also avoid partners with cumbersome operational procedures, antiquated product lines or unremarkable ingredients, said Joni Russell, director of sales, Reliance Vitamin Co. Munn suggested avoiding companies that won’t supply product samples.
When it comes to what to look for in a partner, Jon A. Fiume, vice president of Ritzman Pharmacy, a prescription and natural health pharmacy in Wadsworth, OH, said retailers should look for a flexible vendor. “Not all retailer accounts are the same in this category, so it is imperative to work with someone who understands who you are and what your objectives are.” Ritzman offers a complete line of vitamins, minerals and herbs under its store brand.
Munn suggested retailers look for companies with a strong contact. “Retailers should make sure the private label partner has at least one contact person to help them with the process, and that this person is willing to clearly outline the company’s programs and policies, including product guarantees.”