The concept of private labeling is predominant in the food retail industry. Some of the best products and foods sold in the market are not manufactured by the brand that sells them. That’s the essence of private labeling, where one producer sells supplies to a retailer, who rebrands and repackages the same as their own. While this is something that’s more common with foods like chocolates and groceries, how applicable is this for perishable products, such as fruits? Today, you will find frozen blueberries private label in the market, and this is a good indicator. If you plan to consider this as your business, here’s a list of things you need to know.
- Go organic. If you just sell regular fruits and vegetables, it is hard to find a niche in the market. Instead, organic produce is in demand, and organic fruits and vegetables fetch the premium price that most sellers are looking for. You will find many producers who deal in organic fruits, and it is possible to sell anything from mangoes to blueberries and raspberries.
- Find a good supplier. That’s half the battle won. Yes, a good supplier or company that offers the choice of private labeling will ensure that you have a brand of your own, and typically, they keep the terms and conditions flexible. For them, the idea is to exercise control and avail the benefits of economies of scale, and they will do their bit to encourage more distributors and private label brands.
- Don’t miss the basics. If you are selling organic fruits through private labeling, it is likely that you will be dealing in frozen products, and therefore, storage and distribution are two aspects that must be considered. Most sellers have their own packaging centers, but for private labeling, you also need repackaging centers, where products can be labeled and branded. Besides the cost of the order, it is necessary to consider the cost of additional aspects like labeling and transportation.
Finally, be sure of the profit margins. While private labeling is profitable by all means, not all frozen fruit brands make enough profits. Also, in case of organic produce, the testing should be done for different fruits. Find a supplier, who can take care of the basic aspects, so that you can focus on your brand. Consider the costs, understand the profit markets and start on a slow note to understand the market better.