Private Label Mergers Poised to Increase
Private label products have grown significantly over the past decade with as many as 500 private label food manufacturers now serving the food industry. This growth has been driven by both the consumer's demand for lower priced quality products and the supermarket industry's desire to offer competitive products with higher margins.
Today, more than at any previous time in the dramatic expansion of store brands, private label manufacturers are feeling the impact of past supermarket consolidations and consumers favoring brand names as well as heightened competition from other specialized private label manufacturers. "We feel that there are more reasons today for owners of private label manufacturers to explore likely merger partners," stated John W. Loeb, Principal with the J.H. Chapman Group, LLC.
Regional private label manufacturers are looking to gain operating economies and geographic presence in order to attract and service the large national supermarket, mass merchant and club chains which are relying more on store branded merchandise. Loeb stated, "Regional private label manufacturers need to broaden their offerings to become more meaningful to their customers. The right merger partner can significantly reduce the risk associated with narrow product lines and regional distribution."
For over 25 years, the Rosemont-based J.H. Chapman Group has provided merger-minded food clients with a dynamic and thorough process to find suitable partners. Chapman's Targeted Search Program is a focused, comprehensive tool that manages the entire sale or acquisition process on behalf of clients for minimal disruption and maximum results.
The PLMA's 2009 Private Label Trade Show will be held at the Rosemont Convention Center November 15-17 and will be attended by the principals of the Group.