Private Label Manufacturers Concerned About Front-of-Pack Labeling

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

October 12, 2010

The U.S. Food & Drug Administration's anticipated requirements for front-of-pack nutrition labeling would place a heavier burden on private label manufacturers than on national consumer packaged goods, according to manufacturers who particpated in a conference in Washington D.C. last week.

While the goal of the new requirements are noble -- to improve U.S. eating habits and curb obesity and related health risks -- private label manufacturers in Washington D.C. last week during legislative briefings expressed deep concerns, according to a report in Packaging World.

Many anticipate that the FDA will issue front-of-pack labeling regulations soon, but private label manufacturers and retailers are hoping for more time in order to make the roll out more manageable, according to the report.

More than 60 members of the Private Label Manufacturers Association attended the briefings as part of PLMA’s annual Washington Conference. Even though many national consumer packaged goods companies are on board with the new FDA labeling requirements, some PLMA members said the Nov. 2 mid-term elections could affect the ultimate direction of the labeling requirement.

During the briefings and a panel discussion at the PLMA conference, the following concerns were raised about front-of-pack labeling, according to the report:

• Costs: Because private-label producers are responsible for many more SKUs than national CPG brands, costs could be upwards of $400,000 for a retailer’s brands, compared to $35,000 to $40,000 for a large national CPG brand, according to one PLMA member.
• Business burden: Front-of-pack labeling requirements could ultimately require complete and costly packaging redesigns, which could also overburden design firms simultaneously.
• Waste: Obsolete packaging would have to be discarded, creating costly and environmentally unfriendly waste.

Read These Related Articles:

• Associated Wholesale Grocers Adds Nutrition Keys on Private Label Products
• West Liberty Foods Adds New Private Label Packaging Option
• Koch Foods Spins Interactive Food Packaging First into Aldi Stores With New Huhtamaki Ccontainer
• Walmart Vows to Make Great Value Line Healthier
• Safeway's Custom Ice Cream Packaging Yields Shelf Pop and Savings

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases