Private Labels for Premium Products : The Example of Organic Food
This paper inquires into the tendency of German food retailers to market organic products as private-label products (PLs). After a review of the literature, we present preliminary results of a survey of retailers and processors. 62.5 % of the interviewed processors produce organic PL. Retailers sell organic PLs, because they care about “food safety”, “retail as a brand” and “health”, hoping to reach new customers. Requests for entry fees, investment grants and equipment allowances are less important for processors of organic PLs than for those not producing PLs. However, PL producers have to meet other conditions imposed by retailers.
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