Report Shows Renewed Investment in Private Brands

The number of OU Kosher certified private brands have grown significantly in the past 5 years. The OU Kosher symbol can be found on the shelves of all major retailers. Walmart, Kroger’s, Trader Joes, Costco and Amazon each have hundreds to thousands of OU Kosher brands. Target alone has over 3,000 OU Kosher-certified products.

A report from FMI The Food Industry Association 2021 – Power of Private Brands report – more than half of respondents said they will be investing in boosting private brands via e-commerce and nearly 60% said they will be adding innovative new private brands. Nine out of 10 food retailers and manufacturers expect to “significantly” or “moderately” increase investment in private brands over the next two years,

The private brand report found an urgency for suppliers and retailers to work together too, with more than three-fourths saying they will make a strategic investment in changing or rethinking private brand assortments and supplier strategies in response to the pandemic, and 70% said they will be making longer-term commitments to supplier arrangements and engaging more closely with existing suppliers.

Last year’s Power of Private Brands report sang a different tune, as retailers and manufacturers dealt with impacts of the pandemic. The report showed brands focusing more on value propositions and cooking at home, which certainly played out during the year. In that report, 83% of food retailer executives said fresh foods, such as bakery and deli, represented a major opportunity for private brands.

Including educational sessions on private label trends in 2021, FMI recently announced registration is open for its Private Brands Summit coming up in September.

“During the pandemic, many more consumers gave private brands a try, and this has resulted in new acceptance among today’s shoppers,” said Doug Baker, vice president of industry relations for FMI. “At the same time, the rise of e-commerce and home cooking offer the food industry an opportunity to further grow their private brands programs.”

Phyllis Koegel
As the Marketing Director for OU Kosher, the world’s leading Kosher certifying agency, Phyllis is responsible for the marketing and new business development by assisting food producers worldwide obtain OU Kosher certification for their products. Phyllis developed an early passion for consumer behavior and marketing. She joined the Orthodox Union in 2006 after serving as Marketing Manager for Sabra Hummus. At Sabra Hummus, she helped launch the hummus category to the American market. Hummus became a staple in American households and grew to a billion-dollar food category. Sabra Hummus was purchased by Pepsico in 2008 and has grown to over $1 billion in annual sales. Prior to joining Sabra, Phyllis was involved in the development and success of the International Kosherfest Trade show. As Show Director from 1989 – 2002, she worked with thousands of Kosher food manufacturers and oversaw the strategic planning and execution of the show. Phyllis was born and raised in Brooklyn, N.Y. She obtained an MBA in Marketing from Pace University in 1988. She now lives in Woodmere, N.Y. and has three children and sixteen grandchildren.