What’s The Difference Between White Label and Private Brand?
Read Time: 4 min.
When you’re considering investing in your own tequila brand, you will undoubtedly come across a few standard terms, among them, white label and private brand. While these concepts are all similar in some ways, there are distinct differences between them that you should understand.
So let’s look at all three options so you can have a better understanding of how they fit into your vision.
What is a White Label Product?
White label products are made by one company and branded by another. We see this business model in most sectors of consumer goods. Sometimes described as “generic,” “store brand,” or “buyers own brand,” it is a way for companies to expand their portfolios without having to develop or manufacture a product. You have the right to sell the product under your brand, but you don’t have the rights to the product.
White labeling saves time, money, and effort, helping companies flesh out their offering quickly. The producer delivers the product, and the seller focuses on selling. In many cases, these products are just as good as name brands, but they sell at a much lower price simply because of how the business model works.
What is a Private Label or Private Brand Product?
Private brand products are similar to white label products – with one very significant difference. Whereas the white label product is mass-produced and sold to multiple companies to resell under different brands, a private brand is only made for one company.
For example, a white label spirit would be one product shipped to multiple sellers with no distinctions – truly a generic product. Each reseller then rebrands the product with their own label. There is no distinction, no differentiation; it is simply a way to flesh out a product line.
On the other hand, a private brand is unique to the seller, which could be a spirits brand, a retail store or supermarket, a hotel, a restaurant, or a private club. A company works with the producer to develop a unique product and packaging that fits their market. A private brand is much more than just a product – it has an identity.
When we create a private label tequila for you, that spirit and its packaging are uniquely yours. We work closely with you to design and develop a product that fits your needs and appeals to your market. It’s your design, your concept, 100 percent.
Why invest in a Tequila Business right now?
If you are considering investing in a tequila business in 2021, you could not have chosen a better time. Markets are high, and demand is growing for premium and ultra-premium tequilas, and it’s easier than ever to work with a quality-minded producer who will help you succeed.
An excellent example of a private label product that everybody knows is the Apple iPhone. Apple designs it, but it’s made in China. Apple owns the rights to sell and market the product, and the manufacturer cannot turn around and sell the product or a similar design to anyone else.
How Aceves Spirits Supports You
As a premium producer of tequila and agave spirits, we have a lot of experience working with each of these product trends and have evolved our business model to focus on what we do best.
We are solely dedicated to making a product of distinction; therefore, we choose to provide a range of services that meet our high standards. We put all of our expertise into making the best tequila you will ever experience – so you can focus on marketing and selling the product the way you know how.
Which Model is Better For You?
If you are considering adding a tequila brand to your offering, here are a few things to consider.
White labeling allows you to bring new products to market quickly. White labeling is also less expensive. However, you can’t change or customize the product except with your label and logo. It’s like buying a product out of a catalog and writing your name on it. You can buy in large quantities and be assured of consistency, and production costs are fairly consistent. You control the product and packaging, but you manage the suppliers and assume all associated risks. Without experience in this market, those risks could be considerable.
Private labels and private brands are exclusive to you, but there are subtle differences between the two. In both cases, you are free to modify the packaging as you like to appeal to your customers. A private label generally denotes an existing product that is modified from the supplier’s portfolio, while a private brand is a completely customized product from every standpoint. In both cases, you will work closely with the manufacturer to craft a product that is uniquely your own. Because of the exclusive nature of private brands, minimum order quantities may be higher and production cycles are longer. However, you have complete exclusivity and freedom to market and sell the product however you choose.
Why Choose Aceves Spirits?
Aceves Spirits is a family-owned-and-operated company that combines three generations of dedication to agave farming, a mastery of modern distillation practices, and cutting-edge branding services. Our award-winning tequilas are what our dreams are made of, and we would love to help you bring yours to life.
Reach out today to tell us more about your project. We’d love to show you how we can help.