Private Label Vet Talks AI In Connecting Retailers, Suppliers
Mitchell Madoff is no stranger to the world of private label. With more than two decades of experience in the store brand consumer products marketplaces, the former Whole Foods Market executive who had oversight of the grocer’s exclusive brands is now with manufacturing platform Keychain as its head of Retail Partnerships.
He joined Keychain from Foxtrot, where he served as senior vice president of Supply Chain, Private Label, and Culinary.
Madoff spoke with Store Brands to share insights on how Keychain can help retailers and suppliers connect and also discussed how his experience fits with the company as it grows.
STORE BRANDS: For those not familiar with Keychain, please give us an overview of the company and its services.
MITCHELL MADOFF: Keychain’s AI platform is able to introduce brands and retailers to co-manufacturers. When you walk down a grocery aisle and you're seeing all those products with their brand names on them but there are very few that produce their own products. They don't own their factories anymore, so they're all looking for co-manufacturers. So it's not just the retailers who are looking for co-manufacturers, but additionally the brands. If you think about customization right now, the different diet plans that consumers are eating and what they're looking to purchase from retailers and their brands, it's very different than it was 10 or 20 years ago. It’s difficult for these brands to convert these factories into very specialized, customized formulas. They want to go out and look for co-manufacturers to help them do that, and they can come to Keychain to help them make those meaningful connections.
STORE BRANDS: How does the AI component work within Keychain’s platform?
MADOFF: We have a team of more than 40 people who gather data and identify those manufacturers that are high quality and vetted to put on the platform. We then bring in retailers and brands to make those connections. We're also bringing in analytics that takes into account what attributes are important in the products that are looking to be created. What's your entire go-to-market strategy? Where's your target customer for the product you're producing? We want to make sure we connect the right retailer with the right manufacturer. We also do a lot of competitive intelligence work as well, so you can see where you may have gaps in your assortment and see if that's a category that you want to expand.
STORE BRANDS: It sounds as if this platform is a time-saver for the retailer looking to develop new private label products.
MADOFF: That’s exactly right. Using Keychain allows you to speed shop. Trends are changing all the time so the faster that you can meet that manufacturer and have a conversation with them you’re more likely to have a successful outcome where they're able to produce your product. You’re not spending days, weeks, or months looking for a manufacturer who could meet the requirements of the product you are trying to produce. With just a few swipes of a keyboard, you’re able in minutes to find the manufacturer that meets those requirements.
STORE BRANDS: How does your background and experience fit with Keychain and the services they offer?
MADOFF: My more than two decades of experience in private label and packaged goods will help Keychain grow. This is a tool I wish I had when I was at Whole Foods. When you think about the product development process, there is a product developer, a QA team, an R&D team, logistics, supply chain, food safety, marketing, and brand design. It takes a village to bring a product from ideation to shelf. My background helps enable understanding of what it's like to get those processes moving and what Keychain brings is the ability to create a much more efficient and effective process. It gets products to the shelf faster, lowers the cost of goods, improves logistics, and increases margin.
STORE BRANDS: Is this a tool that retailers of all sizes can use?
MADOFF: This is about creating a transparent ecosystem for all players. Some manufacturers only want to work with retailers that will purchase large quantities of products. However, some manufacturers specialize in retailers or brands that are on the smaller side. We’re an open platform and we can show retailers the manufacturers that are working with growing brands and those that want to work with established brands.
STORE BRANDS: On the manufacturing side, is Keychain focused on U.S.-based companies, or does the platform include suppliers based overseas?
MADOFF: The platform currently is focused on food and beverage and has more than 20,000 U.S.-based manufacturers. We’re expanding with the addition of packing suppliers on the platform and are also focused on adding health and beauty. Going forward we’ll be adding international companies as well.