Private labels for premium products – the example of organic food

Abstract

Purpose This paper inquires into the tendency of German food retailers to market organic products as private‐label (PL) products. Design/methodology/approach After a review of the literature, results of a survey of retailers and processors, are presented. Findings Interviewed processors of the 62.7 per cent produce organic PL. Retailers sell organic PLs, because they care about “food safety”, “retail as a brand” and “health”, hoping to reach new customers. Requests for entry fees, investment grants and equipment allowances are less important for processors of organic PLs than for those not producing PLs. However, PL producers have to meet other conditions imposed by retailers and feel slight more dependent on few customers. Originality/value The results present the first survey of the competitive relation between organic manufacturers and retailers in Germany.

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