When you think of trends in the alcoholic beverage industry, hard seltzer is one of the first to come to mind. Beverage trends show that hard seltzer demand continues to grow. Private label hard seltzer is a popular way to sell hard seltzer.
There are many advantages to selling private label hard seltzer as a retailer. Cheaper costs for marketing, production, and alcohol distribution make private label options a great option for retailers.
Hard seltzer is a competitive and exciting market. There are many aspects to the industry you should understand. Here are a few things you need to know about selling private label hard seltzer.
What Is Private Label Hard Seltzer?
So, what is private label? Private label products are products that are retailed, packaged, and sold exclusively by a third party. Suppliers or manufacturers create the product and sell it to the retailer.
Private label products are common in today’s markets. Many types of eCommerce businesses sell private label goods.
Private label hard seltzers are a popular product for retailers to sell. The surge in demand for hard seltzer is one reason retailers have their own private label hard seltzer options. Many retailers offer their own private label hard seltzers as a way to make the most of this trend.
Key Takeaway: Selling private label hard seltzer is an effective way for retailers to enter the hard seltzer industry. Private label products are popular options because of their low price point.
Private Label Hard Seltzer Market Overview
Hard seltzer is a refreshing alcoholic drink. This keto and gluten free beverage is a popular choice for many. Hard seltzer is low sugar, low-carb, and low calories. The healthy aspects of hard seltzer explain why it’s such a high demand product.
Some top hard seltzer distributors include White Claw and Truly. These hard seltzer companies make up a large market share. They have a strong brand identity and customer loyalty.
Many large grocery stores and retailers offer their own private label products. This includes private label hard seltzer.
Large retailers, including Costco, sell their own private label hard seltzers to compete with the big labels. This includes Walmart private label products, Amazon private label products, Target private label products, and Home Depot private label products.
Beyond chain big retailers, many local breweries sell private label hard seltzer. These businesses often make unique hard seltzers with local ingredients.
Private label hard seltzer impacts the overall hard seltzer market. The introduction of private label products into the market increased competition among hard seltzer brands. There are more hard seltzer options on the market. Private labels are often cheaper than name brands. The competitive pricing of private label hard seltzer made a major impact on the industry.
Selling Private Label Hard Seltzer
Selling private label hard seltzer has many considerations. While there are advantages for retailers and consumers,there are also a few challenges. Learn more about the pros and cons of selling private label hard seltzer below.
- High Profit Margins:
Many retailers produce or purchase their private label hard seltzer wholesale. This allows for lower production costs than many big-name hard seltzer brands. Buying wholesale alcohol is a cost-effective option. Retailers can sell their private label hard seltzer at a low cost and still maintain a healthy profit margin.
Retailers can also save money on marketing and branding expenses for their private label hard seltzers. They can rely on existing marketing and branding. They can also use existing customer bases to sell their product.
Another advantage of selling private label hard seltzer is the chance to customize and control the product.
Retailers can control the product development process for their seltzers. They can customize the flavors and alcohol content to align with the needs of their target audience. This level of customization can help retailers stay on top of trends.
Retailers can make unique and exclusive private label hard seltzers. These products can convince customers to purchase a private label product over a name brand.
The main challenge of selling private label hard seltzer is high competition. There are many options on the market. This can make it hard for private labels to stand out.
Private label hard seltzers should have a unique selling proposition. This will set them apart from the competition.
Strong brand identity and new flavors can help private labels stand out. The lower price is another selling point to emphasize.
Big label hard seltzer brands have strong branding and visibility. Private label hard seltzer brands need creative branding and marketing to get consumer attention.
- Building Brand Loyalty:
Another challenge of selling private label hard seltzer is building brand trust and loyalty. The bigger hard seltzer companies have strong brand loyalty. This can be tricky for private labels to achieve.
Many consumers think private labels are low quality. The lower price point of private label hard seltzer adds to this idea. High quality hard seltzers and good marketing can help combat these negative perceptions. Providing a positive customer experience can build brand loyalty.
Established hard seltzer brands often have loyal customer bases. It can be difficult to convince consumers to stray from well-known brands. The good reputations of big brands are one of their strong selling points.
Retailers selling private label hard seltzers must convince consumers to choose their product. Consistent products, competitive pricing, and strong branding can all help.
Frequently Asked Questions About Private Label Hard Seltzer
Many retailers now sell private label hard seltzers. Private labels offer a chance for retailers to capitalize on this trendy drink. There are many things to consider when thinking about selling private label hard seltzer. Understanding the market can help you navigate the industry. Get answers to any remaining questions about private label hard seltzer below.
How is private label hard seltzer different from regular hard seltzer brands?
Private label hard seltzer is different from regular hard seltzer brands because retailers create and sell the drinks themselves. Big hard seltzer brands are widely available. Private label hard seltzer is only available from the retailer. Private label hard seltzer is often cheaper than big seltzer brands like White Claw.
What are the benefits of private label hard seltzers for retailers?
Benefits of selling private label hard seltzers for retailers include high profit margins, customization options, and lower overhead expenses.
Selling private label hard seltzer often has high profit margins. This is because retailers buy products in large quantities. Buying products wholesale often means a lower cost per item. There are also lower costs related to marketing and branding the product.
Private label hard seltzer also allows for product customization that appeals to a niche market. The retailer already has access to a large customer base. The retailer already has business systems such as bulk shipping in place. This further reduces costs.
Are private label hard seltzers more affordable for consumers?
Yes, private label hard seltzers are typically more affordable than well-known hard seltzer brands. Retailers can produce and sell private label products for lower costs. The production, distribution, and shipping and handling are often cheaper.