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R&D, transparency key to sustained private label gains

This article was originally published in The Tan Sheet

Executive Summary

Private labelers must innovate and work closely with retailers to survive investments by national brands looking to win back market share, according to a panel convened by the Private Label Manufacturers Association. The panel - including Taro Pharmaceuticals VP of OTC Products Ed Moniz and Perrigo Consumer Healthcare VP of OTC Marketing Ron Schutt - discussed post-recession strategies for private label marketers. Despite the recent success of store brands, retailers are hesitant to commit to private label suppliers for the long term, which could stifle research and development investments by those firms, according to the panel report PLMA released Sept. 1. Additionally, national players are launching value brands and line extensions as direct challenges to private label, the trade group says. PLMA's panel recommends private labelers make their operations more transparent to retail chains, which now require more value-added benefits from their store brand products

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