Whether your company is a start-up or an established brand, you may be wondering when it’s appropriate for you to turn to co-manufacturers for your branded or private label products — especially if you’ve never outsourced manufacturing services before. As a general rule, utilizing private label candy co-manufacturers is a good idea for large or small retailers that want to develop their own house brand of products.

Some retailers prefer to mimic favorite national brand items to show a value with their house brand or offer innovative line extensions of favorite brand items to provide something unique.

​

To understand this better, it’s helpful to think of grocery stores. A typical grocery market is going to sell food that’s produced by national brands. While the store will make money on every package of branded product it sells, the retailer usually makes more if their private label of comparable products offers value. Retailers with house brands advertise and market their entire line or brand together to send a message to their customers.

​

House brands do not have individual advertising and marketing expenses per product like a national brand consumer product group company would. Most chain retailers benefit from having a private label or house brand, but they are not usually a manufacturer.  If you want to develop your own confectionery products, you can use private label candy companies to create and produce these products for you.