Emphasizing these new product traits while working to cultivate an image of quality has led many private-label programs to reinvest in their brand's packaging, Hiebert noted.

“Years ago, it was easy to spot the store-brand products on the shelves because of their monochromatic designs. Private-label products now look similar to their national-brand counterparts — a boost for their image.”

Wilkinson agreed, saying she believes that it is one of the biggest evolutions in private-label dairy.

“What I think is the biggest evolution is the fact that retailers are recognizing how a private-label package looks, what a brand looks like, what unique selling premise it has — the origin, the small batch and so on,” Wilkinson said.

“Does it have other qualities that consumers perceive as beneficial, such as vitamins or health benefits or organic [certification] or all of those things? Retailers are really looking into that and bringing private label — marketing-wise, packaging-wise, point-of-purchase-wise — up to branded products. I think that evolution is bound to continue.”

NARRATIVE BUILDING

For many private-label programs, that brand-building process is still in its earliest stages. For example, Michelle Barry, president of research consultancy Tinderbox in Bellevue, Wash., believes that retailers could be doing a better job at communicating a compelling story about their private-label products to the consumer.

“If you look at some of the success behind the branded products and being able to convey quality, a lot of it's through building a narrative about where it's from, who produced it, something that's connecting the consumers beyond basic product attributes like low fat, no hormones or organic. Anyone can do those attributes, but not everyone can develop a meaningful story about what that process or technique as a brand is all about,” Barry said.

“So it kind of depends on the retailer. If you've got a retailer that has built their brand — it has a really compelling story and maybe they're able to connect down to the level of the manufacturer or buyer — then you have some more momentum where the brand actually plays a role. For example, if you're looking at some retailers who have a really great brand image from a consumer perspective, then whatever their private-label products are — whether it's in dairy or in other categories — it will automatically be assumed to be of higher quality, regardless.”

Wilkinson cited Safeway's O Organics brand as a house brand that had succeeded in communicating both quality and special product attributes through a combination of better-looking labels and attractive packaging — similar to a well-executed national brand. And, she noted, some supermarkets are developing their own lines of specialty products by working more closely with premium suppliers.

“Lowes Foods is adopting a program with Wisconsin [cheesemakers] where they are going to carry their own line of Wisconsin cheeses with the Lowes identification,” she noted.

Retailers may have an opportunity to build their private-label brand with cheeses and cross-merchandising it with other private-label products, she said. In recent years, for example, many retailers have been developing artisanal cheese stations or cheese counters staffed with knowledgeable store associates.

“They're creating their own little special places in the store, or boutiques of fresh-cut cheeses. [They're using] more beautiful packaging, some of it with breathable paper and things like that. So, to the extent that the cheese area offers retailers the opportunity to further build their private-label brand, I think that's very exciting for them, and they shouldn't miss out on that opportunity,” Wilkinson told SN.

“I think that it's gotten so much more competitive in the grocery retailing world that everybody is trying to carve out their own unique products, their own unique identity, and private label is just one very strong tool that grocery retailers have to make themselves unique.”