Federated Foods Adapts to Evolving Private Label Market
The continued growth of private label products across numerous categories has driven sales across the industry and led retailers to grow their assortments and invest in product development. As national retailers expand their existing own-brand selections and launch new brands, the competitive playing field has intensified. Regional and local retailers are challenged to compete with their larger counterparts while seeking new options to meet growing consumer demand.
This growth has opened new opportunities for Federated Foods. The company, approaching its 100th year in business, has remained nimble while upgrading its selection of private label brands, such as Better Valu. It also continues to work with a broad selection of retailers, supplying store brand products across numerous categories.
At the company’s Buying Show in Chicago, Store Brands spoke with Bill Bradshaw, Federated Foods’ chief operating officer, about the current state of business, the growth of private label, and macro challenges the company is addressing.
STORE BRANDS: For Federated Foods today, what is the company’s role in the retail landscape?
BILL BRADSHAW: Federated is uniquely positioned. We offer own brands to independent small and midsize wholesalers and retailers. Our customers can buy from us and stop at any time. As a result, we have to prove ourselves every day with products that provide the right price and quality, while continuing to add items that allow retailers to meet their customers’ needs. We also work with retailers to help them source products in certain categories and assist others with issues such as logistics. We’re flexible enough to provide the specific services a retailer needs.
SB: This type of service appears to give retailers the ability to choose from the full breadth of services Federated offers.
BB: Yes. For example, we have 15 people on-site with a grocery store that works with us. They tell us what they need, and we find the manufacturers, handle the design, and maintain product quality. We also have people in stores making sure the products are set correctly. In this case, we’re working on the project from beginning to end.
SB: What are some of the milestones Federated has achieved over the past year?
BB: One of the big milestones has been the completed conversion from our old own brand to Life Every Day. We duplicated all the items we had in the line, and now we’re working to grow the line and add new categories.
SB: Over the past couple of years, have there been any significant shifts in demand for more private label products that are also of improved quality?
BB: We’ve been asked for more private brand options and to expand into more categories. Additionally, there has been a lot of talk about value, and our Better Valu line offers products that meet that need. But despite constant talk from consumers who say they don’t have enough in their wallets, we’re not seeing major growth with our value line. There continues to be a lot of chatter behind the scenes, and we’re ready with products because we expect demand for high-value products to grow.
SB: As the quality of private brand products has improved, so too has product packaging. How has Federated upgraded its packaging designs?
BB: There was always a thought to have the products and packaging be “me too.” Let’s make the label look very similar (to national brands), and that would provide a family look. But we have done things differently. Recently, with French fries, we opted for a black package. We do have product packaging that shoppers are accustomed to, but we also look for opportunities in certain categories to innovate and do something different. This brings excitement to a category and shows that it’s not just a typical private brand.
SB: In recent years, the industry has dealt with major issues such as a pandemic and inflation. Now, tariffs are a major talking point. What conversations is Federated having and hearing related to tariffs?
BB: When the tariffs were announced, it was a significant development. We have been surveying our suppliers and gathering the necessary information. Obviously, if a product is manufactured in a different country, tariffs will be a significant factor. Some of our suppliers have told us they source ingredients from outside the U.S., so there will be an impact. For others, there will be no impact, as their ingredients are sourced domestically. There are still some suppliers from whom we have not heard back. Right now, we’re collecting a lot of data, and we’ll proceed from there.
SB: What challenges is Federated facing in the current business environment?
BB: Supplier capacities have been a challenge, but that is improving. It has been tough, as some suppliers have increased their minimums, which has challenged small wholesalers and retailers that don’t have enough volume to buy a truckload of products at a time. There has also been a lack of supplier competition, but I see that beginning to improve. We have many new suppliers here (at Federated’s 2025 Buying Show), and companies are investing in manufacturing and the private brand industry, so I think it is changing.
