17 May 5 requirements for choosing a manufacturer for your private brand in the food sector
Distributor brands are gaining ground on manufacturer brands. This is particularly true in the food sector. One of the reasons causing this trend is inflation. In fact, the latest Consumer Price Index data reveal that the cost of living has increased by nearly 10% and the average shopping basket has become around 7% more expensive.
This rise in prices means consumers are looking for new options to make their supermarket bill cheaper. And one good way to save is by choosing distributor brand products.
In such context, many companies are choosing to create their own brand. Of course, to do so, designing a good price strategy is essential because the increase in the costs of raw material and auxiliary materials in addition to the impact of the COVID-19 pandemic on the world economy is making it so price is again decisive when filling up shopping baskets.
However, it is even more important to choose a manufacturer for your private brand well. Especially in the food sector. Here are five requirements you must keep in mind when selecting a partner.
Looking for a manufacturer to make your products is like looking for a new member for your team. What would you want? One thing’s for sure. You need someone with a lot of experience in the sector who knows the product and can guide you throughout the process.
Therefore, some of the information you must find include the year the company was founded, how long it has been making the products you’re interested in and how long they have been manufacturing products under distributor brands. You don’t want someone who has taken advantage of the situation to starting producing under an own-label brand. You need a solid company with experience, including experience manufacturing own-label products as part of its services. Just take a quick look at their website and you’ll know.
A company that manufactures everything? No thanks. That would not be your ideal manufacturer. Nobody can be an expert in everything. In the food sector, each process is different. Producing dry-cured meats has nothing to do with all the phases required to produce pre-cooked pulses, for example.
So, look for a company with expertise on a very limited number of products (from the same range, if possible) that has specialised in one single niche. Thus, you’ll be sure they understand all the details of their manufacturing, market and commercialisation.
You must be very clear about the quantity of product you’ll need and the frequency at which you’ll need more. This requires a meticulous study to guide your choice of manufacturer for your private brand. It’s the only way to know the minimum production capacity you need from a manufacturer.
Other variables also come into play here, such as the number of customers the manufacturer has and your capacity to order in advance. So, choose a manufacturer based on their production capacity and establish medium- and long-term stock replacement deadlines whenever possible.
When it comes to food, certification is everything. One of the most important types is International Featured Standards (IFS). Make sure your private label manufacturer has obtained the highest possible food safety rating. It’s also quite important for you to have a deep understanding of its internal quality controls. And, if you’re looking for an organic product manufacturer, always ensure they have the corresponding certification.
Flexibility is always a plus. Find a manufacturer that does everything possible to adapt to your needs and is always willing to provide you with good and varied alternatives. This is especially important when determining the formats and weights of your packaging as well as deliveries and delivery terms.
—>Bonus track: business philosophy
There is one more requirement you must always keep in mind when choosing your private brand manufacturer in the food sector (and any other for that matter). Their business philosophy must fit with your company’s. It’s important for you to share the same values. One good way to do this is to check their corporate responsibility plan or whether they’ve signed the UN Global Compact.