Skip to main content

The Branded Perspective | Private Label’s Power Play - and What Smart Brands Should Do About It


The Branded Perspective | Private Label’s Power Play - and What Smart Brands Should Do About It

The economy continues its slow contraction—and with it, the rules of the CPG game are shifting again. We’ve already discussed marketing budgets shrink and hiring freeze across the board, pushing more work into project-based engagements. And we’ve acknowledged the disproportionate pressure small brands face compared to their well-established counterparts. But the next phase of this economic cycle? It’s all about shelf consolidation, and the biggest winners are private label brands.

Private Label 2.0: From Budget Buys to Category Leaders

Gone are the days when store brands were the “cheap knockoff.” Since the 2008 recession, retailers have not only expanded their private label offerings—they’ve improved them. Better taste, better design, better packaging, and in many cases, better positioning.

Retailers love private labels because they offer better margins, stronger customer loyalty, and more control over their in-store narrative. But traditionally, private labels have lagged in innovation and commercialization timelines. That’s changing fast.

The potential solve? Partnerships.

Increasingly, retailers are striking deals with smaller (and sometimes larger) manufacturers to overlabel their products under store brands—giving the retailer innovation at speed, and the manufacturer volume and cash flow.

What Comes Next: Shelf Set Shrinkage and Fall Swaps

The next big move in this economic tightening? Shelf set reductions. You’ll see this play out in two waves:

  1. Spring resets (just wrapping up in many categories)

  2. Fall swaps (soon to be underway)

As retailers reduce the number of SKUs to drive operational efficiency and profitability, private labels will fill the gap. Expect to see more shelf space allocated to store-owned brands across categories—from pantry staples to beauty.

So, What Does This Mean for Your Brand?

Whether you’re a legacy player or a challenger trying to stay afloat, this shift has implications:

  1.  Big Brands: Focus Forward, Not Sideways: You’ll be tempted to obsess over the market share private labels might eat into. Don’t waste the energy. The real threat to your brand is not private label—it’s irrelevance. With smaller brands being naturally weeded out by shelf cuts, the field is thinning. Stay focused on keeping your P&L tight, your marketing relevant, and your distribution strong.

  2. Challenger Brands: Get Creative or Get Crushed: It’s going to be tough. Retailers will be pickier than ever. One potential (but potentially controversial) strategy? White-label partnerships. Offer your product to a retailer under their brand umbrella—but with a clear agreement:

    • Your branded SKUs get guaranteed shelf placement

    • Your margins are protected

    • The private label version is sufficiently differentiated

    • --> It’s a survival strategy—but one that can keep cash flowing and shelf space secured until the storm passes.  

  3. Retailers: You Hold the Cards: This is your moment to play long ball. Invest in your store brand portfolio. Lock in exclusive manufacturing relationships. Be strategic with SKU reductions and double down on what your customers are telling you they value. Done well, your private label brand will complement them.

 

Final Thought:

The shelf is about to get smaller, but the stakes are getting bigger. Brands that cling to legacy models or delay adaptation may not survive the next reset. But those who understand the evolving retailer-brand dynamic—and move quickly—can emerge stronger, smarter, and with a renewed relevance.



About the Author


Sara L. Gable is a marketing strategist with over 20 years of experience building beloved brands and driving business growth.  She served as Chief Marketing Officer at a startup wine company and has led initiatives for household brands including Samuel Adams, Heinz, and Colgate. Known for her creative instincts and data-driven approach, Sara brings a unique blend of entrepreneurial energy and big-brand discipline to every project.

Learn more at The Art of Marketing.

Labels:

Comments

Post a Comment

Popular posts from this blog

Midlife Crisis? More Like a Midlife Calibration

Midlife Crisis? More Like a Midlife Calibration I’m well past my 40th birthday, and with the big 4-5 coming this August ( ACK!! ), I’ve started feeling like I’m due for a midlife crisis—or at least a midlife reflection. I don’t need a red convertible or a spontaneous tattoo (yet), but I do find myself looking back, looking forward, and trying to make sense of this wildly beautiful in-between place. Personal Reflection Yes, I probably could’ve been healthier. But you know what? [Cliche Alert] I did it MY WAY . I’ve cried often, loved hard, and found the space that defines me. And that, in itself, feels like a major win. Things I'd Always Recommend for a Life Well Earned 1. Keep experimenting. Make the big leaps. I was nearly paralyzed before committing to Vanderbilt for B-school . It felt like if I picked a door, the other would close.  And that's not wrong - I'd say it's quite spot on.   The best choice though?  Following my gut.  I got into “better” schools a...
Post a Comment
Read more

The Branded Perspective | The New Economy Is Here—And Big Brands Will Win It

We are entering a new chapter in the consumer goods economy—one shaped not just by inflation or post-pandemic ripple effects, but by sweeping policy changes, tariffs, and a recalibration of supply chains. It’s not just the cost of doing business that's rising—it's the cost of staying in the game. In this emerging landscape, I believe big, established brands will be the inevitable winners. This is the first in a series of articles where I’ll unpack what’s happening, why it matters, and what it means for both brands and the broader ecosystem of grocers, distributors, and consumers. While many of the effects are just beginning to emerge, one thing is clear: we’re headed for a period of contraction, not expansion. Marketing Dollars Will Be First to Go As supply chain costs and tariffs eat into margins, marketing budgets will be among the first line items reduced—especially for brands trying to stay afloat. But here’s the catch: marketing is not just a spend, it’s a lifeline. It...
Post a Comment
Read more

Not Quite a Hallmark Movie: My Altoona Interlude

When I told friends in New York City that I’d be spending a stretch of time back in my hometown of Altoona, Pennsylvania , I got a lot of raised eyebrows—and more than a few Hallmark jokes. “Are you going to fall in love with the hometown guy and ditch the big city for good?” they asked, half-kidding. (Or maybe not.) It’s a fair question, I suppose. A big-city girl returns to her roots, reconnects with small-town charm, rediscovers what really matters… cue the snow gently falling on a lovingly restored town square. But let me set the record straight right now: there was no flannel-wearing lumberjack, no surprise inheritance of a struggling bookstore, and no last-minute decision to stay forever. But what did happen was something unexpected—and honestly, really lovely. At first, I worried I’d be bored. (Sorry, Altoona, but I’ve got to be honest!) The last time I spent a significant chunk of time here, I was 18 and counting the days until I left for college. Back then, the town felt a...
Post a Comment
Read more