FMCG Glossary

What is Private Label?

Private Label / Own Label

Definition

Private label (also called own-label or store brand) refers to products manufactured by a supplier but sold under the retailer's brand name (e.g., Tesco Finest, Sainsbury's Taste the Difference, Aldi Simply Nature). Private label typically competes directly with manufacturer brands at lower price points.

Examples of Private Label in FMCG

  • A biscuit manufacturer producing both Fox's Biscuits (branded) and Tesco's own-label biscuits
  • Waitrose own-label occupying 40-50% of shelf space in premium grocery
  • The rise of premium own-label as a direct threat to mid-tier branded products

Private Label in the FMCG Industry

Private label penetration in UK grocery has grown significantly, particularly in discounters (Aldi, Lidl). For branded FMCG manufacturers, private label is both a commercial threat (competition) and a business opportunity (supplying own-label alongside branded products). Brand equity management is the primary defence against private label encroachment.

Why Private Label Matters for Your FMCG Career

Understanding private label dynamics is essential for Brand Managers, Category Managers, and commercial teams. Category Managers often manage ranges including both branded and own-label products. The ability to defend branded distribution against own-label is a key skill in commercial and category roles.

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