Price points for private-label products found in brick-and-mortar stores often come in at a discount. Because manufacturers can produce private-label products in bulk, negotiate with established suppliers and streamline operations, these products enjoy reduced costs. Through niche brand creation, consumer trust and easy accessibility, store brands are growing in popularity.
Aldi leads the North American market in terms of the number of private-label store products sold and the number of OU kosher-certified products available. In a recent article, Howard Katzenstein, Director of Business Management and Trademark Compliance at the Orthodox Union, reported on the exact figures, including kosher products, from the leader, Aldi, and second-ranked Trader Joe’s. He wrote, “According to the latest data from Numerator’s Private Label Trends Tracker, 80% of Aldi’s sales come from private labels, including 3,756 OU kosher-certified products. Similarly, 69% of Trader Joe’s sales come from private labels, offering 1,480 OU kosher-certified products.”
Food Business News, in reporting about Aldi’s growth, quoted the president of Aldi USA, Dave Rinaldo, who said, “Aldi is growing faster than it ever has.” At a Private Label Manufacturers Association (PLMA) trade show, Rinaldo said, “Our greatest fear is not having enough supplier partners.” This opens the door to many manufacturers who want to enter the store-based private label market. And as the president of PLMA, Peggy Davis, in reference to store-brand profitability, said, “Business has never been better.”
Aldi stores are easy to shop. All products are neatly displayed and clearly labeled. Some common Aldi brands include Specially Selected, Earth Grown and Simply Nature. They’re deliberate in covering most food categories with diverse product offerings. In addition, they carry name brands as well. One trip can take care of most of your shopping needs.
Breakfast Products
Dairy Products
Baking Products
Snack Products
Conclusion
With 2,400 stores in the U.S., Aldi has a strong presence, with plans to grow further. Because of their store-based private label brands, they are able to offer steep discounts. It’s a store you can walk into and cross off many items on your shopping list in one trip. The private label market has become an oasis for general and kosher consumers to save but not at the expense of quality.