An increasing number of Polish companies are deciding to sell their products to retail chains under a private label. What made you become interested in he private label sector?

The sector of “private brands” is developing very dynamically all over the world and we can see the very same trend in Poland. At the moment, the share of private label brands exceeds 50% and there are many indications that it may even reach the level of 80-90% in the near future. What is more, the traditional market is undergoing serious changes connected mainly with branch consolidation and retailers merging in chains or associations, which are interested in creating own label and common brands. Such an approach brings enormous opportunities for manufacturers and our company also reckons this is the best possible direction for growth. What is more, as a modern company which reacts to market demand and changes in a flexible manner, we must include these factors in our strategy for development, which stipulates meeting the needs of customers in accordance with the social responsibility of running a business.

Is the competition in the private label sector as fierce as in the case of branded goods? I mean in such categories as ketchup, mustard, mayonnaise and sauces.

Based on our experience, yes, which is why producers need to be well prepared as far as quality and technology are concerned. For many years, Roleski has invested in the development of its technological infrastructure by acquiring state-of-the-art production equipment allowing us to have the capacity that would meet the requirements of private labels. Most importantly, certificates, including BRC and IFS, which are essential for the quality and safety of our products, together with moderate prices are the key factors that opens the doors to cooperation in the field of private labels. That is why Roleski is doing very well on the market of private label products.

What is the actual difference between the private labels you produce and the goods branded with the name Roleski on the label?

Unfortunately, for many years the only difference between private label products and Roleski goods was the price which was expected to be as low as possible due to the fact that no brand-building costs were incurred in case of private label goods as compared to branded products. This situation is slowly beginning to change, though.

Are private labels a threat to branded goods production?

A store shelf has limited length and there is not enough space for every product. I can say that branded goods production is facing a real threat in connection with the expansion of private labels. In my opinion, however, if we keep consistent quality and maintain reliability of our operations, as in the case of Roleski products, there is nothing to be afraid of – the brand will defend itself.

Poland or abroad? Which direction for private label development is strategic for your company?

Poland has always been the strategic market for Roleski. In the case of private label products, a given partner is much more important than the geographical direction itself. It does not really matter if our customer comes from Poland, France or the United States.

What are your plans for the development of private labels?

Being a player in this segment, i.e. the market of private labels, is very important for our company. We intend to continue investing in the development of the company and its technical and quality assurance facilities. Building the reputation and an image of a reliable partner, who can guarantee perfect  support in terms of quality, volume and promptness, is what we are going to use to gain new customers and extend the scope of cooperation with existing partners.

Author: Tomasz Panczyk
t.panczyk@foodfrompoland.pl