Well, well. Look
who's talking private label? None other
than QSR Magazine, one of my favorite print publications.
In his blog post, Steffen Weck touches on several good points about private label's insurgence and rapid acceptance on the retail side. His point that private label products are no longer considered inferior rings true, as consumer-based surveys have proven time and time again.
But what about foodservice? The other half of the food dollar?
This happens to be the industry that QSR Magazine covers.
As broadline distributors introduce additional products, and ramp up sales efforts to emphasize their own labels through aggressive marketing and in-kitchen taste comparisons, the foodservice industry will also witness similar patterns.
After all, who's visiting the restaurant more than anyone else?
The food manufacturer? No way. The direct sales force is focused primarily on the big chains.
The food broker? Not quite. Their sales force is way too small to influence all operators.
It's the DSR (distributor sales rep). The distributor makes contact with the foodservice operator more than anyone, and is often driven by attractive incentives to promote private label alternatives – not branded product.
Discussions about the shift in product quality and market share are healthy to have, but let's not pretend that it's limited to retail.
I would argue that it's even easier to transition away from branded products in the foodservice industry. Since brands are unseen, would a consumer truly know the difference between a Tyson chicken breast and a private label alternative from US Foodservice?
QSR Magazine is supported by advertising dollars, most (if not all) from branded product manufacturers.
How long would they survive if the brands disappeared tomorrow?
We all need to wake up, and acknowledge the facts. Left unchallenged, private label brands will continue to grow in both retail AND foodservice. Business as usual is no longer business as usual.
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