Technavio lists five top store brand vendors

Global technology research and advisory company Technavio lists Costco Wholesale, The Kroger Co., Trader Joe’s, Walmart and Wegmans as the top five leading vendors of store brands in its recent "Private Label Food and Beverage Market in the U.S." report.

According to the company’s research, private brands in the U.S are fragmented with the presence of many small, medium-sized and global vendors that compete based on price, quality, product differentiation, innovation, service and reputation. The growing competition in the market is expected to reduce the prices of the products, thereby adversely affecting profit margins of the vendors and the growth of the overall market.

“Vendors with better technical and financial resources are expected to offer innovative products and volume discounts,” said Tamal Saha, a lead retail goods and services research analyst for Technavio. “They need to develop new operational and product-oriented technologies and remain abreast of the emerging technologies to maintain the competitiveness of their products. The global players are currently dominating the market, however, several regional and foreign players with lower market shares are experiencing high-profit margins.”