The food retail industry has changed considerably in the last decade, more because e-retailing has become a norm. No matter whether you are selling chocolates or organic produce, there’s a segment that’s willing to pay the price. However, when it comes to fruits and veggies, things can be a tad more confusing and trickier, simply because we are talking about perishable goods here. No wonder, some of the best superfoods are frozen and sold. This includes berries, fruits from exotic countries and varied kinds of vegetables. In that context, how does private labeling work? In this post, we take a look at the relevant aspects.
As mentioned above, most of the perishable fruits and veggies that are meant to be preserved and sold later are frozen, for which manufacturers and producers have to adhere to stringent practices. In most cases, it takes considerable amount of work and effort to get things ready before being sold in the retail market. In case of organic produce, all products must be tested for pesticide residues, as well. Private labeling is still a profitable practice in this industry, thanks to brands like https://www.naturestouchfrozenfoods.com/en/carry-our-products. These are companies that have created the right setup for retailers and resellers to flourish.
Getting ready for the market
Private labeling is basically about buying products from a producer/manufacturer and selling the same later under one own’s brand. The practice is extremely prevalent in different food retail segments, and in case of frozen fruits and veggies, the concept needs a tad more consideration. If you want to venture into selling such products, it is necessary to have a business plan in place. Packaging and storing frozen foods require additional investment, and for private labeling, support from the concerned supplier is important. You have to find a supplier, who will not only sell products but will also offer more support for repackaging and labeling.
As a retailer, private labeling should allow to have a say on selling prices and profit margins, so considering the costs is extremely important. If you have to also check all other relevant aspects related to reputation and market standing of the supplier. For organic fruits and veggies, products must be tested for pesticide residues. Don’t shy away from asking questions and check the practical profits that can be derived from your investment. It is always best to start slow and test the market for customer responses.