Private Label Demystified: How do private brands operate, and is it worth choosing them?

Many people believe that if a product is cheaper, it must automatically be of lower quality. But is that true? Together with the VARUS supermarket chain, let's explore how Private Label works, why these products are less expensive, and whether they are worth purchasing.

What is Private Label?

Private Label, or PL (own brand), refers to products manufactured in factories under the order of supermarket chains but sold under their brand. How does this work? The retailer identifies a verified manufacturer that, for example, produces sweets. This company creates similar products, but some are under its own brand and others under the retailer's brand.

This approach has been widely used around the world for a long time. For instance, in Europe and the USA, the share of such products in large chains like Walmart, Tesco, Aldi, or Carrefour reaches 30-40% of the entire assortment.

In Ukraine, this trend also exists and is actively gaining momentum. Why? Because it benefits both consumers and the chains themselves. Customers receive quality products at lower prices, while retailers gain customer loyalty.

For example, the VARUS supermarket chain offers over 2500 different products in both food and non-food segments under its own brands. The products of these PLs are on par with well-known brands but come at a lower price.

Why are these products cheaper?

It may seem that if the product is the same, why is the price different? There are several reasons why PLs cost less than well-known brands:

1. Lower advertising costs. Established brands spend millions on marketing. PLs do not require such extensive advertising since they are promoted by the supermarket itself.
2. Production optimization. The products are made in the same factories as expensive branded counterparts, but without unnecessary logistics expenses or complex packaging designs.
3. Purchasing in large quantities. Supermarkets order huge volumes of products directly from manufacturers, significantly reducing production costs.
4. No intermediaries. In the case of regular brands, there are distributors, logistics companies, and advertising agencies between the manufacturer and the consumer. PLs eliminate these intermediaries, making the product more accessible.

How is the quality of Private Label controlled?

Some mistakenly believe that a cheaper product means a compromise on quality. In reality, PLs undergo the same verification stages as products from major brands.

Indeed, all products from VARUS's own brands undergo rigorous control, which includes:

• Collaboration only with verified, certified manufacturers.
• Laboratory testing of each batch.
• Compliance with international and Ukrainian safety standards.
• Internal inspections by the quality department.

As a result, when you purchase a PL, you receive the same level of safety and quality as that of more expensive counterparts.

How to create a shopping basket with Private Label products: VARUS PL assortment

The VARUS supermarket chain actively develops its own brands, offering a wide selection of products at attractive prices.

Currently, the chain features over 10 own brands that cater to every taste and budget:

• TM "Varto", TM "Varto Clean", TM "Varto Soft"

Products in this line are alternatives to popular brands at more affordable prices. TM Varto offers a wide range of high-quality products: meat products and sausages, cheeses and dairy products, sweets and beverages, groceries and canned goods, made to special orders for the supermarket chain. Under the Varto Soft brand, personal hygiene products are manufactured, while TM Varto Clean offers a large selection of cleaning and household items. In total, TM Varto includes over 600 product items.

• TM "Vigoda" and "Chysta Vigoda"

These are products available at the best prices in the market. The TM "Vigoda" line encompasses a wide range—from dairy products to groceries and sweet drinks. Thanks to optimizing all production stages, products of this brand can be purchased at the lowest prices. Under TM "Chysta Vigoda," cleaning and personal hygiene products are offered at the first price in the market.

• TM "Origin"

This brand offers products imported from various countries. The unique aspect is that the products are imported from those countries known for producing these goods. Original taste and quality—at the best price.

• TM "Varto Kids" and "Tokery"

These own brands feature products for children of various ages. The Varto Kids line includes products for babies aged 0 to 3 years. Meanwhile, the TM "Tokery" assortment offers products for children aged 3 and up. The products of these private labels undergo particularly thorough checks to ensure that children receive only the best.

Additionally, VARUS has its own brands with a narrow focus on specific product assortments:

• TM "Bohema"

Tights, socks, and other textile products for the whole family. In total—about 250 items. The product line is constantly updated based on seasonality and fashion trends.

• TM "Domashniy Koshyk"

Craft products from Ukrainian producers—milk and dairy products, meat, eggs, spices, semi-finished products, snacks, jams, sauces, and much more.

• TM "BBQ Master"

An exclusive line of seasonal products for grilling and barbecuing—marinades, sauces, lavash, as well as grills, firewood from fruit trees, and charcoal briquettes. Everything for the best outdoor leisure at optimal prices.

• TM "Extra Milk"

Milk and dairy products made from extra-class milk.

• TM "Smachno, yak u mami"

Meat products and semi-finished products prepared by hand.

• TM "Vinsanto"

High-quality wines and sparkling wines at optimal prices.

Here’s why customers choose VARUS PLs:

• Excellent quality. Every product undergoes strict control before hitting the shelves.
• Wide selection. The assortment includes everything from food products to household chemicals and home goods.
• Attractive price. The absence of unnecessary markups makes these products accessible to everyone.

A global trend taking over the market

Private Label is no longer just an alternative to branded products; it is now a distinct market segment that is actively growing. Modern consumers want to receive quality at a reasonable price, and PLs provide that. In developed countries, such products account for up to 50% of supermarket assortments, and this figure is only increasing.

In Ukraine, consumers are also increasingly trusting PLs. It’s not just about saving money—it’s a smart choice. By purchasing VARUS's own brand products, you receive verified quality without overpaying for a well-known name on the packaging.

So next time you see a Private Label product on the shelf, know that it’s a smart purchase that combines quality, affordability, and reliability.