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From Proprietary to Private Label: Analyzing the Transition of FMCG Brands in the Food Sector

Home / From Proprietary to Private Label: Analyzing the Transition of FMCG Brands in the Food Sector
From Proprietary to Private Label

From Proprietary to Private Label: Analyzing the Transition of FMCG Brands in the Food Sector

A leading FMCG company in the food sector sought to understand the shift from proprietary to private label sales among key brands.

Our approach involved comprehensive secondary research and market analysis, examining industry reports, case studies, and sales data. Our team identified successful brand transitions and the core drivers of this shift, including cost savings and rising consumer demand for private labels. Additionally, our analysis assessed the impact on business performance, focusing on market share, profitability, and challenges such as preserving brand identity and managing retailer negotiations.

By delivering clear insights and actionable strategies, our research equipped the client with a robust understanding of evolving market trends, supporting their strategic decision-making in the competitive FMCG landscape.

Client Challenge

Our client is a fruit and vegetable grower specializing in a wide variety of tomatoes, while also commercializing aromatic herbs, edible flowers, and clams across Europe and North Africa. With a focus on expanding their market presence, they aim to identify FMCG brands, particularly in the food sector, that have transitioned from primarily selling under their own brand to offering more products under private labels.

Our Solution

  • Secondary Research: Conducting a literature review of industry reports, case studies, and market data on FMCG and private label trends.
  • Market Analysis: Analysis of sales data from public sources focusing on brands that have shifted from proprietary to private label sales.

Outcome

  • Identification of Key Brands: A list of FMCG brands, especially in the food sector, that have successfully transitioned from proprietary brands to private label sales.
  • Motivations Behind the Shift: Insights into the reasons why these brands decided to make the switch, such as cost savings, increased market demand for private labels, or partnerships with retailers.
  • Impact on Business Performance: An analysis of how this shift has affected the brands’ overall sales, profitability, and market share, both positively and negatively.
  • Best Practices and Challenges: Key strategies that worked well for these brands during the transition and challenges they faced, such as maintaining brand identity or negotiating with retailers.
  • Market Trends: Broader market trends related to the rise of private labels and their impact on traditional FMCG business models.

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