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The Popularity of Private Label Beverages

What’s the one thing common between big retailers like Target, Walmart, Whole Foods, and Costco? They’re a major investor in private label products.

The idea of private labels is easy and smart. And retailers like Walmart and Target purchase items from a private manufacturer, such as a beverage producer, and label and market the product using their name. This is not the same as purchasing beverages from another company and using their brand name on the beverage.

Some private labels on Target are Good& Gather, at 7-Eleven is 7-Select and at Costco is Kirkland Signature. Every retailer has some products sourced from external manufacturers and then sells them using their brand name.

A major reason behind the success of private label beverages is customer loyalty. Customers rely on their favorite retailers. They believe their store buying experience will be great compared to other names. However, this is not just true retail giants; even new startups can launch drinks under their name using private label beverages. All you need to do is ensure that you choose a trendy product and market it well to gain the loyalty of your target audience. You can start selling the private label product at a slightly lower price than other brands to gain more customers.

This is great news for the beverage sector, where retailers have turned to lower-price, better-quality drinks to enhance their private label selection.

The private label beverages trend has a different meaning for everyone:

Retailers have enhanced their private label beverage offerings in the past few years. Most private label drinks are sitting on store shelves along with major beverage brands, stealing away their sales. There has been a rise in demand for alcohol, energy drinks, mocktails, caffeinated drinks, health beverages, etc. Beverage developers visit PL Beverage with their beverage idea to prepare their beverages with ease.

While shoppers can easily switch to private label beverages because of the price, the price cannot be the all-time binding factor to tie to your brand. Consumers also expect the product to match the quality and taste of a good brand. Retailers need a product that can add to their store shelves. They choose premium beverages that meet the quality expectation of the customers and will surpass the taste of available beverages. Quality is a major factor selection criterion. Do not choose a mediocre drink.

Retailers are seen to get success and profit in private labels that add something productive and innovative to the market and meet an unmet requirement. The idea of joining a private label is to reach out to a beverage developer who knows what a shopper needs. Hence the developer should understand their target customer’s needs and deliver a product accordingly. It is important to know the market, develop a quality product and make that beverage viable for the target market.

So, take your chance here and craft a new, good-tasting product that can compete with major beverage companies. Schedule a consultation with the PL Beverage team now and help us produce and release your next beverage idea.


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