News
Wednesday, January 11, 2023
Private Label on the Rise
Across the world, private label coffee is on the march again. Global Newswire reports that the global private label food and beverages market is expected to witness a growth of more than US$280 billion during 2023-2027 with a CAGR of 6%. Read on to find out what is driving this growth and why you should consider creating your own private label coffee brand.
According to the Food Industry Association (FMI), US retailers are planning to increase their investment in private label food and beverage ranges. Elsewhere, for example in the UK, private label has a stronger position, already accounting for about 50% of food and beverage sales. The presence of this category in European supermarkets is increasing too – data indicates that private label consumer goods make up almost half of supermarkets’ sales volumes in Switzerland and Spain, for instance.
To the casual observer, private label is often considered a cost play yet there is much more at work. Very often, where retailers are able to realize high-quality own-brand choices they can carve out additional loyalty among an otherwise transient shopper base. In other words, why shop at chain A versus chain B, if both stores offer the same or similar prices? Well, for many consumers, the choice of where to spend their money can come down to a handful of own-brand products, which they especially enjoy and which are exclusive to a single retailer.
Retailers and brands that show innovation and adaptability in their own-brand ranges can drive value not just a low price. Key mechanisms in coffee for doing this include ranging sustainably sourced coffee, choosing premium and environmentally sensitive packaging, and offering alternatives to brands in newer categories such as capsules and Microground instant coffee.
The premise that brands are just better no longer automatically holds and as many have discovered little or no difference between the two.
Your own-brand range makes an impression
With lots of products and coffee brands available, companies strive to create a way to stand out from their competition. Establishing a private label allows a company to create visibility on the shelves with their own coffee line. Innovative packaging and labeling are excellent marketing opportunities to create the first impression among competition.
The goal is to constantly offer a distinct or pioneering private label product that grabs the attention of new customers and results in higher sales of your product.
Why should you consider creating your private coffee label?
With private label, your company can easily offer a variety of products to satisfy many consumers’ tastes simply by offering something unique and/or trendy like functional coffee mixes, flavored instant coffee, or perhaps premium offerings like single origins. All of this ideation takes time and resources, which is why you need to surround yourself with dynamic, insightful suppliers who can provide cost-effective high-quality products that are aligned with trends.
In addition, a strong private label brand will help you boost your company’s overall image and customers will see you as a reliable source for quality coffee products among competition.
How can we help?
- At Sucafina Instant, our expert teams have in-depth knowledge of the development of innovative own-label coffee products.
- Our multi-layered support can help you develop your new instant coffee concept – or improve your existing concepts. We can support your procurement teams to achieve commercial benefits and cost savings and help match your existing coffee profile.
- In addition, our rapid delivery and stock availability means we can deliver many qualities of coffee from stock in Europe, North America, and Asia or assist your supply chain team in managing logistics direct from the factory.
- No need to worry about the manufacturing process as we can handle the process from ideation to execution to delivery.
- The instant private label coffee category is on the rise with promising sales and margins returns. Don’t miss out on this opportunity – get in touch today so we can greatly increase your profit margins
At Sucafina Instant, we are your one-stop shop for instant coffee products. Our aim is to help brands and manufacturers find the right coffee solutions for their needs. We offer an unparalleled range of sustainably sourced instant coffee in bulk and finished goods formats, with a wide array of jars, sachets, pouches, boxes, and tins. We offer everything conceivable for brands and retailers – just ask!