Private label is not background anymore. It is the frontline of supermarket competition.
For years, own brands filled gaps. Cheaper versions of big names. Safe, steady margin. Functional, not exciting.
That time has gone.
Walk through any leading European chain and you see it: premium ranges in wine, bakery, chilled meals. Exclusive formats in health and wellness. Packs that look like design agencies built them, not discount knock-offs.
And the driver isn’t marketing spend. It’s the buyer.
Buyers in the Middle
Supermarket buyers are now asked to do more than secure volume. They are asked to create.
Margins are still part of it, of course. But the real question is: does this range make the shopper come back? If the answer is no, the buyer has missed the mark.
One UK buyer put it bluntly: “If private label doesn’t surprise the customer, it dies.”
From Copy to Creator
The shift is structural.
In Spain, Mercadona’s Hacendado range leads, not follows. In Germany, Aldi and Lidl use private label as a calling card. In the US, Kroger pushes its Simple Truth line as a wellness brand in its own right.
These aren’t copycats. They are category leaders. And they tie the customer to the store.
Partners, Not Just Suppliers
The quiet story here is the rise of co-manufacturers. Once hidden, now visible.
These partners are not just churning out commodity lines. They are helping retailers design recipes, improve pack formats, and fast-track new categories like plant-based or protein snacking.
It is a different relationship. Less transactional, more creative. The buyer and the supplier side by side, not across the table.
Where the Growth Lies
Wellness and functional food.
Plant-based and alternative protein.
Premium tiers that carry higher price points.
Sustainable packaging and refill systems.
Local sourcing stories that add authenticity.
These are the battlegrounds.
A cola brand can be switched. But a supermarket’s own ready meal, its own pasta, its own chocolate bar — only exists in one place. That is the stickiest kind of loyalty.
Risk and Reward
Of course, it cuts both ways. A failure under your own name is harder to hide. Recalls, quality slips, missed launches — all come back on the retailer.
That is why trial runs and shopper testing matter. A smart buyer will pilot, tweak, then scale. The reckless ones go all-in and take the hit.
The Next Phase
Penetration keeps rising. In some European markets, four in every ten products sold is private label. In Asia, the curve is only beginning, but growth is faster than expected.
The next phase will not be “cheap.” It will be “only here.”
Supermarkets that get this right will not just survive inflation and squeezed shoppers. They will come out stronger.
As one Central European buyer told me recently: “Price is temporary. Loyalty is forever. Private label is how we earn it.”
Closing
Private label is no longer back-up. It is the main act.
And the buyers who understand that are already reshaping the market.
