McBride Sees Growth In Private Label Despite Modest Overall Volume Increase - ESM Magazine

Summary

British cleaning-product maker McBride reported modest overall volume growth of 0.4% in the first half of its financial year to 31 December 2025.

The Oven Pride maker attributed this growth to a 0.9% increase in private label volumes and continued strong demand across its core markets.

Revenue for…

Source: ESM Magazine

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Q1: What is the role of private label brands in the retail market?

A1: Private label brands, also known as store brands, are products owned by a retailer and sold under the retailer's own brand name. These brands often compete with national brands and are typically manufactured by third-party companies. Private label brands allow retailers to offer exclusive products to their customers and can often be sold at a lower price point. They have become increasingly popular as they provide retailers with better margins compared to national brands. For instance, in 2018, Kroger had 60% of its private brands produced by third parties, while the rest were manufactured internally.

Q2: How did McBride achieve a growth in private label volumes in 2025?

A2: McBride, a British cleaning-product maker, achieved a 0.9% increase in private label volumes in the first half of its financial year ending December 2025. This growth was attributed to continued strong demand across its core markets. The company's strategy likely involved leveraging its private label offerings to meet consumer demand and enhance market penetration, driving volume growth despite modest overall volume increases.

Q3: What are some challenges faced by private label brands in the market?

A3: Private label brands often face challenges related to product differentiation and consumer perception. Since these brands are usually positioned as lower-cost alternatives, they must overcome the stigma of being perceived as lower quality. Additionally, they must compete with well-established national brands which often have stronger brand loyalty. Retailers need to invest in quality improvements and marketing to enhance the reputation and appeal of their private label offerings.

Q4: What recent scholarly insights are available regarding market behaviors with private capital?

A4: A scholarly article by Viktor I. Shapovalov discusses how markets with prevailing private capital can develop according to a subharmonic cascade scenario, which may lead to economic crises. This suggests that nonlinear market equations can influence the sustainability and stability of markets dominated by private capital, impacting strategic decision-making for private label brands.

Q5: How does digital marketing enhance the growth of private label products?

A5: Digital marketing plays a critical role in the growth of private label products by enabling targeted marketing strategies, enhancing brand visibility, and engaging consumers directly through digital platforms. Techniques such as search engine optimization (SEO), social media marketing, and content marketing allow private label brands to reach a wider audience efficiently. These strategies help in building brand identity and customer loyalty, which are crucial for the success of private label products.

Q6: What are the economic implications of the rise in private label brands?

A6: The rise in private label brands has significant economic implications, including increased competition in the retail market, pressure on national brands to innovate, and potential cost savings for consumers. For retailers, private labels offer higher margins and greater control over product offerings, aiding in profitability. Moreover, consumers benefit from a wider range of choices and potentially lower prices. This trend can lead to shifts in market power dynamics between retailers and manufacturers.

Q7: What does the future hold for private label brands in the retail sector?

A7: The future of private label brands in the retail sector looks promising, with continued growth expected as retailers expand their offerings and improve product quality. Innovations in product development, along with strategic partnerships with manufacturers, will likely enhance the competitiveness of private label brands. Additionally, the shift towards e-commerce and increased consumer willingness to try new brands will further drive the adoption and success of private labels in the market.