What Is Private Label & How Does It Work in the Confectionery Business?

Private label is a business practice whereby one company sells products under its own trademark (TM) but does not manufacture them itself. In simple terms, you don’t build a workshop, hire a technologist, or purchase equipment, but you can launch your own brand of desserts and promote it.

This business model has been used for years by large retailers (Metro, Silpo, Auchan). As a tool for strengthening the brand, increasing margins, and rebuilding from competitors, private label effectively fulfills its function.

Who is private label for and what are its advantages

According to statistics, private labels are most often used by:

• coffee shops and restaurants,
• health food stores,
• chain stores and supermarkets,
• online businesses,
• franchises.

But why do all these niches choose private label sweets and cakes?

Imagine that your coffee shop has a nut cheesecake. What’s more, this dessert is not available anywhere else in the city. Of course, visitors will remember this dessert and associate it with your establishment. Therefore, first and foremost, private label creates uniqueness.

The next reason. When you sell products from a mass producer, your markup is limited. Usually, it will be between 50% and 150%. Your own brand of desserts allows you to independently set the final price of the item on the menu. At the same time, the product will have a higher added value.

Thirdly, you have complete control over the product range. You decide what goes into the seasonal collection and what new products appear for the holidays, rather than adapting to what is left in stock.

Most importantly, customers see your name on the packaging. You = the brand. That is why confectionery businesses across Ukraine choose to manufacture under a private label.

How it works

Manufacturing private label cakes is not difficult if you have a reliable partner. With the Nasoloda private label, the process is as follows:

1. We define the goals. Why do you need your own dessert brand? Do you want to earn more from sweets? Create a signature assortment in a coffee shop? The goals determine the format, price, and technology.
2. We create recipes. Together with our technologists, we select or develop recipes based on your idea. Do you want a new style of “Kyiv” cake? Or a healthy sugar-free cheesecake? We take into account the tastes of the target audience, logistics, shelf life, and profitability.
3. We launch a trial batch. You receive samples before full-scale production. You can conduct tastings, gather feedback from customers, and set up presentations at points of sale.
4. Production and delivery. After approval, we will arrange regular deliveries. You receive a product that is completely ready for sale.

We offer turnkey production under a trademark on favorable and pleasant terms.

Why choose a partnership with the Nasoloda

We have established ourselves in the market as a stable and profitable confectionery company. Over the years, we have built our brand, developed, and implemented best practices to support small and medium-sized businesses in the region. Even during a full-scale invasion, we continue to look for ways to realize your potential to scale the confectionery industry.

If you dream of producing under a trademark that belongs only to you, we invite you to cooperate with us! We offer:

1. Experience. We have been working with confectionery products for almost 30 years, understand trends, and possess the latest technologies. We have cases in the US, Canadian, Moldovan, and Romanian markets.
2. Focus on business. We help you make money because all our decisions are made solely with profitability in mind.
3. Quality. Control at every stage, HACCP certificates, modern technologies. All products are handmade. The shelf life of finished products is 36 to 72 hours.
4. Flexibility. We work with small batches of 50 units or more. Every day, we bake and deliver over 4,000 confectionery products to our stores.
5. Support. We advise on marketing, market entry, packaging, and brand positioning.

Choose the private label model from TM Nasoloda and launch your own brand of desserts that will sell itself. We are always happy to welcome new partnerships!