Walmart Taking Private Label Offerings to New Heights —

Sam’s Club initiates a wine brand, Walmart pushes its own organics, and private labels are losing their stigma:

The immediate story: Sam’s Club, a division of Walmart, will be rolling out a line of private label wines under their Member’s Mark brand. On the surface, this is probably not groundbreaking news—it is merely a response to what has been an incredibly successful Costco private label effort in wine under their Kirkland label, which is said to account for 20% of their estimated $4 billion in wine sales. Clearly, Sam’s wants a piece of the action and consumer acceptance of private brands continues to grow in the United States as quality, packaging and marketing efforts continue to improve. The Private Label Manufacturers Association estimates that private label now accounts for $150 billion in sales in the U.S.

Supplier Takeaway

U.S. consumers are more comfortable than ever with private brands. How does this impact your business strategy?

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