A private label, also called a private brand or private-label brand, is a brand owned by a company, offered by that company alongside and competing with brands from other businesses.[1][2] A private-label brand is almost always offered exclusively by the firm that owns it, although in rare instances the brand is licensed to another company.[3] The term often describes products, but can also encompass services.
The private-label process contains a company that manufactures products, while another company brands and sells those products. In this field of food and beverage, private labeling enables brand-holders to create personalized products for their target markets.[4]
The most common definition of a private label product is one that is outsourced, in which a firm is contracted to make a product under another name.[5][6][7] However, it can also define products made in retailer-owned firms.[8][9] For example, in 2018, The Kroger Company had 60% of its private brands produced by third parties; the remaining 40% was manufactured internally by plants owned by Kroger.[10] Private-label producers are usually anonymous, sometimes by contract. In other cases, they are allowed to mention their role publicly.[11][12]
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