Private Labels Rising: How Retailer Products Are Taking Off And Transforming The CPG Industry

Sep 17 19:09 2018 Print This Article

Around the middle of the twentieth century, there was what The Atlantic called a “Cambrian explosion” of brands.

Tide, Crest, Band-Aid, Lipton, and other branded packaged goods — and the conglomerates that manufactured them — reigned. Store brands from retailers were seen as down-budget choices.

Today, tastes have changed.

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Costco, one of the top wine sellers in the country, now sees 15% of its overall wine sales going to private-label products. Target’s Cat & Jack kids’ line has delivered double-digit results since its 2016 launch, even as traditional retailers struggle to stay afloat.

Private-label sales are projected to grow to capture 25% of dollars in the next decade. This has major implications for CPG brands which once had a symbiotic relationship with the retailers that now pose the greatest threat.

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CB Insights

CB Insights analyzes data on private companies in emerging industries to provide predictive intelligence on company health and strategy, investor performance and technology adoption trends. They aggregate and analyze massive amounts of data and use machine learning, algorithms and data visualization to help corporations replace search engines, and corporate financial institutes, so they can answer massive strategic questions using probability not punditry. With backing from the National Science Foundation and venture capital investors, CB Insights mines terabytes of data and knowledge contained in patents, venture capital financings, M&A transactions, hiring, startup and investor websites, news sentiment, social media chatter, hiring activity and more.

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