Create a Successful Deli Private Label Program

Shoppers turn to store brands for quality and innovation.

What was once considered a value-only market is now a space for premium, even artisanal offerings. Private brands, also known as store brands, house brands, or own brands, continue to grow in popularity. Overall sales of store brands increased $9 billion to a record $271 billion last year compared to 2023, according to Circana Unify+ data, as shared by the Private Label Manufacturers Association (PLMA), headquartered in New York, NY.

This represents a 3.9% rise in dollar sales in all outlets from Jan. 8 to Dec. 29, 2024, versus the same period in 2023. What’s more, for the first six months of 2025, dollar sales of private label products increased 4.4% versus the same period a year ago, compared to only a 1.1% gain for national brands.

“We’re seeing this demand fueled by a desire from consumers for fresh, authentic products,” says Frank Belfiore, vice president of marketing and retail sales for Caputo Cheese, in Melrose Park, IL, an award-winning cheesemaker under the company’s own brand, and private label manufacturer for retail of fresh mozzarella slices and balls, Parmesan, Romano, Asiago, and PEG board zipper pouch cheeses.

“Operators aren’t just looking for lower prices; they’re seeking standout quality, reliable sourcing, and a brandable story. Private label programs allow supermarket delis to stand out in a crowded landscape.”

Several trends are driving innovation in private-label products in multiple supermarket deli categories.

“Take soup, for example,” says Peggy Davies, PLMA president. “Raley’s Supermarkets in Sacramento, CA, won a PLMA’s 2024 Salute to Excellence Award for its Nob Hill Trading Co. brand ‘Sacratomato’ Tomato Bisque soup.”

On the health and wellness front, Davies adds, “Stop & Shop’s Taste of Inspirations Deli line includes Lower Sodium Turkey Breast. As for premium demand, Safeway’s Premo Taglio line has specialty offerings like mozzarella cheese roll with prosciutto and basil.”

Private label plays an essential role in foodservice offerings in the deli, where shoppers visit for convenient, high-quality, prepared foods for on-the-go or at-home consumption.

A good example is Meal Simple by H-E-B. This prepared foods line includes restaurant-quality, ready-to-eat or ready-to-cook meals, including single-serving and family-sized options. Among the selections are Italian-inspired dishes, like spaghetti with meatballs, Asian-inspired bowls, such as Butter Chicken and General Tso’s Chicken, and other items like salmon with mashed potatoes and green beans.

The rising demand for quick-and-easy meals will be reflected at PLMA’s 2025 “Store Brands Marketplace” Private Label Trade Show, Nov. 16-18, at the Donald E. Stephens Convention Center, Chicago, IL.

THREE-STEP HOW-TO

First, deli operators need to have a firm grasp of their private label brand identity and what they have to offer consumers: Is it premium quality? Health and wellness? Consistency? says Darren Jones, director of private brands for Reser’s Fine Foods. This Beaverton, OR-based company manufactures prepared foods for private label, such as salads, side dishes, tortillas and dips. “Once that’s clear, private brands can then identify the product mix that best serves their store’s shoppers.”

Secondly, for the specific items, the key is starting with a clear goal, according to Caputo’s Belfiore. “We work closely with retailers to match their vision, whether it’s a specific cut or various shredded options. Our recommendation? Start strong with proven cheeses and plan for growth. For instance, we recommend starting with consumer favorites, like fresh mozzarella, then expanding into specialty formats as the brand grows.”

Reser’s incorporates its most popular items into its retail deli customers’ private brand lineup, including potato salad, macaroni salad and coleslaw, says Jones. “These represent high-volume sellers that cater to a broad demographic. Additionally, we may develop custom recipes or align with specific ingredient requirements.”

Five to eight flavor SKUs are usually the average number desired in a high-quality private label soups program, says Bob Sewall, vice president of sales and marketing for Blount Five Foods. The Fall River, MA-headquartered company, makes restaurant-quality soups, entrees, and sides to sell under its own brand, like Blount’s Clam Shack, and well-known retail brands, such as Panera Bread, as well as private label.

“Sometimes these are seasonal SKUs. Other times, they are specific to a certain area or region where the retailer is located. For example, from the Carolinas to Florida, seafood, like she-crab soup, is popular. In the Midwest, it’s white chicken chili, and in the Southwest, it’s traditional Hispanic-flavored soups. These types of private-label soups serve as a differentiator. Something that a shopper can only purchase at that retailer’s stores. It brings customers through the doors.”

Creating custom private-label cheese spreads is an area where Pine River Pre-Pack, in Newton, WI, excels. The company makes cold pack, clean-label, and gourmet shelf-stable snack cheese spreads. A first-place in March for its shelf-stable garlic and herb spread at the U.S. Championship Cheese Contest is one of several awards.

“We have 24 flavors in our Pine River brand, and some 85 variations of cheese spread total, meaning 60 are for private label customers,” says Ian Behn, president. “Some customers prefer a custom formulation based on trending flavors; therefore, we have our own kitchen and R&D process to create new, exclusive products. Maple bacon, raspberry chipotle, and hot honey are recent examples.”

Third, plan and allow time for the innovation and formulation process.

“In general, stores usually look for three to five private label cheese spreads; that’s the sweet spot.”
— Ian Behn, Pine River Pre-Pack, Inc., Newton, WI

“If we’re creating a new flavor, it can be four to six months, or as fast as we get approvals from the retailer, as we collaborate closely with our customers,” says Blount’s Sewall.

It can take longer for private-label cheeses.

“Many retailers are looking for a legacy cheddar to add to their private label selection,” says Tim Multerer, executive vice president of sales for Meister Cheese, a 1916-founded family-owned and operated cheesemaker in Muscoda, WI, that specializes in artisan-style American cheeses. The company is vertically integrated, meaning it has control of the product from the milk used to the packaged product.

“Some customers will come to us with an idea of what to add as a flavor innovation. What you put in or on the cheese can change it dramatically, and over time, as it ages. For example, cheddar can take several months, several iterations, and several samplings to see how the added flavor works as the cheese ages, and it might take a year for the final result. Specialty cheese is a complex animal.”

MARKET & MERCHANDISE

Merchandising matters, says Caputo’s Belfiore. “The most successful private label programs are treated like real brands, with attractive packaging, compelling stories, and a clear point of view.”

“The most successful private label programs are treated like real brands, with attractive packaging, compelling stories, and a clear point of view.”
— Frank Belfiore, Caputo Cheese, Melrose Park, IL

The biggest misperception about private label products is that they compete with branded products. Not so, according to Alyssa Vescio, senior vice president of center store merchandising, sourcing, and product development for Whole Foods Market, a 500-plus store natural and organic products-focused retailer headquartered in Austin, TX.

Vescio spoke about the retailer’s private label program at the New York, NY-headquartered Specialty Food Association’s Fancy Food Show in June.

“So often, you see if we launch something in a private label, that a brand might feel threatened or pushed out. From our perspective, both brands are complementary, as they help elevate the category, encompassing both local and emerging brands, as well as larger national ones. We bring them all together to give our customers greater accessibility to high-quality foods, to our standards, and at a reasonable price point. That helps bring people into the category and builds the category.”

Eighty-four percent of consumers trust the quality of store-brand products as much as or more than national brands, according to a study released on June 26, 2025, titled “The Quiet Takeover of Private Label” by First Insights, an AI-enabled global retail platform based in Pittsburgh, PA. At the same time, more than half (52%) say they’ve been influenced to try a store-brand product by in-store promotions, packaging, displays or marketing materials.

“If a private brand offers something distinct and unique, that differentiation should be clearly merchandised. Popular items and top-selling sizes should be displayed adjacent to national brand counterparts to highlight the value and encourage trial. A dual-brand strategy is useful when aiming to make that difference,” says Reser’s Jones.

Retailers have used marketing and advertising to leverage their private-label deli business.

“This includes special promotions, in-store displays, and social media campaigns,” says the PLMA’s Davies. “We encourage industry partners to get involved with our second annual national Store Brands Month in January 2026, a month-long celebration to increase consumer attention to the positive attributes of store brands — including quality, value, consistency, uniqueness and innovation — across all product categories in both brick-and-mortar and online retail formats. The principal goal is to increase shopper trial of and loyalty to store brand foods, beverages and nonfoods.”

The future of private label, especially when it comes to cheese, is premium, purposeful, and differentiated, says Caputo’s Belfiore. “Consumers are more discerning than ever. They want to know where their food comes from and what makes it special. That means operators will keep leaning into private label as a way to deliver signature offerings with real quality.”