Part 2: The Maker Shortage; Can the Private Brand Supply Chain Survive Without New Blood?

This article is the second of a two-part series on the evolving pressures and opportunities in private brands. Part 1, The Loyalty Trade-Off, examined how the surge in national brand promotions is causing some retailers to deprioritize their own brand strategies and what that trade-off could cost in long-term customer trust and brand equity.

As national brands demand more production time, and as the largest retailers expand their private brand portfolios, suppliers are stretched thin. When capacity tightens, it is often the smaller or regional private brand programs that get squeezed out.

One vice president told me bluntly, “We used to be a priority. Now we’re a favor.” It is not personal. It is economics. Larger orders are more efficient. Bigger programs get the line time. And many mid-tier private brand manufacturers find themselves shut out, even when demand is growing.

This creates a real supply chain vulnerability. The future of private label growth depends on a stable, diversified manufacturing base. And right now, that base is shrinking.

We need to rebuild the pipeline of private brand makers. That means encouraging new entrants. Supporting regional producers. Identifying legacy plants ready for a strategic shift. Even exploring partnerships with former DTC brands that are ready to grow through private label instead of launching their own product lines.

But here’s the catch: they need to see this business model as a viable, preferable path. We have to show them that producing for private brands can be more stable, more scalable, and more profitable than trying to be the next national brand.

Here’s why that message matters:

Predictable Demand

Private label production is typically linked to long-range retail plans, not short-term promotional spikes. Manufacturers benefit from steadier forecasts and more consistent runs, which improves plant utilization and operating margins.

Lower SG&A

You do not need a national sales team, a brand management division, or a field marketing organization. Manufacturers can focus on product and quality, not on running a commercial machine.

Less Marketing Overhead…and No Shelf Tax

Branded CPGs spend heavily on consumer marketing and also pay for access. Slotting fees, free fills, annual marketing commitments; these expenses can drain cash before the first unit is sold. Private brand producers avoid these costs. There are no shelf access fees, and retailers manage the brand investment. You are paid to produce, not paying to participate.

Reduced Working Capital Requirements

Owning your own brand often means tying up cash in packaging, warehousing, customer acquisition, and promotional inventory. When you manufacture for private brands, many of these costs are reduced or shared. Some retailers even co-invest in materials or commit to long-term forecasts, easing financial strain.

Long-Term Customer Relationships

Retailers do not make changes to their supplier base lightly. Once you are in, and perform well, private brand relationships tend to be longer lasting and more stable than national brand placement. The partnership is baked into the assortment strategy, not won or lost with every quarterly review.

These are not small advantages. In fact, for many manufacturers, they can be the difference between growth and stagnation.

But none of this will happen on its own. Retailers, wholesalers, and buying groups must take a more intentional role in supplier development. That may mean helping navigate regulatory complexity, co-developing innovation, or even securing financing support for equipment upgrades.

Because at the end of the day, you cannot protect or grow your private brand strategy if you do not have the partners to make it real.

The future of own brands depends on more than consumer trust. It depends on building and sustaining the supply base behind it.