Private label food products, sometimes called store brands, represent nearly 20% of all retail food sales in U.S and in excess of $90 billion going through the cash register.
Surveys indicate that more than two-thirds of total U.S. households agree that private label items are a cost effective alternative for consumers compared to the more expensive name brand products. Private label offerings have steadily stolen share from popular brand-name products.
These items can be found in virtually all U.S. households with private label cookies being one of the fastest growing products in the segment.
Sales in this segment are increasing despite the old adage “you get what you pay for” embedded in the consumer’s mind. At one point, private label cookies priced lower than national brands were perceived as lower quality items.
The old adage is no longer applicable. If the price/quality gap still existed private label cookies would not sell and they would disappear from the shelves. Retailers simply could not afford to keep them in stock.
Private label cookies are no longer restricted to grocery stores but now available in major outlets such as drug stores and even online through Amazon.
Since the recession in the U.S. economy private label cookies have become a cost effective alternative for consumers compared to the more expensive major brand names.
The growing private label cookie segment together with the increase of retail outlets nationwide expanding their offering spells opportunity for commercial bakeries such as Traditional Baking Inc in California.
“We have felt the increase in the segment with more new clients. Our existing clients are gradually increasing the size of their orders and range of products,” states Kathy Voortman, CEO of Traditional Baking.
Traditional Baking Inc has over 29 years experience as a private label cookie manufacturer with over 40 different cookies available. The bakery possesses SQL, Kosher and Women Owned Business certifications.
They also offer contract bakery services to clients that require cookies produced using their own recipe.
Voortman continues, “Private label cookies offer ongoing profit centers for retail outlets. The quality of our cookies is comparable to major brands and conducive to repeat consumer purchases.”
“We can deliver at much better price while maintaining high quality. Brand name manufacturers have huge advertising budgets as well as pay retailers substantial “slotting fees” just to place the product on shelves.”
“These expenses have to be passed down to the consumer through higher prices to retailers. That means high price on the shelves.”
“With private label cookies we do not spend anything on consumer advertising. The retailer takes on the ad expense if any and obviously does not charge slotting fees for its own product.”
Slotting fees is a widespread practice where retailers charge manufacturers or charged to have their product placed on their shelves. In addition to slotting fees, retailers may also charge promotional, advertising and stocking fees.
“We partner with each individual client to produce a long term relationship. Private label cookies are manufactured using our tried and tested recipes and packaged according to client specifications with their brand and logo. The finished product is made available for pick up at our warehouse or delivered nationwide,” concludes Voortman.
For more information on private label cookies offered by Traditional Baking Inc call them at : 909-877-8471 or visit http://www.TraditionalBaking.com
Company Name: The Bridge Marketing Agency Inc
Contact Person: Keith Hunt
Country: United States