Private Label vs Name Brand: Who Actually Makes Your Store-Brand Products?

The Same Factory, Different Labels

Here is one of the worst-kept secrets in consumer goods: many store-brand products are manufactured in the same factories, on the same production lines, using similar (or identical) ingredients as the name-brand products sitting next to them on the shelf. The cheaper price tag does not always mean cheaper quality. It often just means lower marketing costs.

Private-label products (also called store brands, own brands, or house brands) have grown from budget afterthoughts to a $250+ billion industry in the United States alone. Retailers like Costco (Kirkland Signature), Trader Joe's, Amazon (Amazon Basics), and Aldi have built entire business models around private-label products that rival or exceed the quality of national brands.

This article explains how private-label manufacturing works, which name-brand companies make store brands, and what this means for consumers.

How Private-Label Manufacturing Works

The Three Manufacturing Models

Model 1: Name-brand companies make private-label products

Many large CPG companies operate their factories at less than full capacity. Rather than leave production lines idle, they take on private-label contracts to manufacture store brands. The same factory that produces a name-brand cereal might produce the store-brand version on the same line, sometimes with minor recipe adjustments.

Model 2: Dedicated private-label manufacturers

Companies like TreeHouse Foods, Ralcorp (now Post Holdings), and Perrigo specialize in manufacturing private-label products. These companies operate massive facilities producing hundreds of store-brand items across multiple categories. TreeHouse Foods alone generates over $4 billion in annual revenue exclusively from private-label products.

Model 3: Retailer-owned manufacturing

Some retailers own their own manufacturing facilities. Costco operates a chicken processing plant specifically for its Kirkland Signature rotisserie chickens. Aldi and Trader Joe's work with a network of dedicated suppliers for their private-label ranges.

Name Brands That Make Store Brands

While most companies will not publicly confirm their private-label contracts, several connections are well-documented:

How to check: Compare the manufacturing plant codes on the name brand and store brand. If both list the same USDA establishment number or manufacturing facility code, they were made in the same plant.

The Costco Kirkland Phenomenon

Costco's Kirkland Signature is perhaps the most successful private-label brand in the world, generating an estimated $75+ billion in annual sales. Costco has been remarkably transparent about sourcing Kirkland products from name-brand manufacturers:

• Kirkland Signature batteries are widely reported to be manufactured by Duracell
• Kirkland Signature vodka is distilled at facilities that also produce premium spirits
• Kirkland Signature diapers are manufactured by Kimberly-Clark (maker of Huggies)
• Kirkland Signature coffee has been roasted by Starbucks for certain varieties
• Kirkland Signature olive oil has won awards competing against premium Italian brands

Costco's strategy is to offer name-brand quality at lower prices by eliminating marketing costs and accepting lower margins. The Kirkland brand is now so trusted that it often outsells the name brands it sits next to.

Trader Joe's: The Private-Label Store

Trader Joe's takes private label to the extreme: approximately 80% of its products are sold under the Trader Joe's brand name. The company works with a network of manufacturers, many of whom also produce national brands, to create exclusive products.

• Trader Joe's pita chips have been linked to Stacy's (a PepsiCo brand) manufacturing
• Several Trader Joe's frozen items come from facilities that also produce national brand equivalents
• Trader Joe's spices and seasonings are sourced from major spice companies

The genius of Trader Joe's model is that customers trust the Trader Joe's name enough to try unfamiliar products. This eliminates the need for individual brand marketing, keeping prices low while maintaining quality.

Amazon's Private-Label Strategy

Amazon has built an extensive private-label portfolio:

• Amazon Basics: Electronics, household items, office supplies
• Amazon Essentials: Clothing basics
• Solimo: Personal care and household products
• Wag: Pet food
• Happy Belly: Food and snacks
• Presto!: Household cleaning products

Amazon's advantage is data. The company can analyze which products sell best on its platform, identify categories with high margins, and launch private-label alternatives targeted precisely at proven demand. This has raised concerns among national brands that sell on Amazon while competing against Amazon's own private-label products.

Why Private Labels Are Growing

Private-label market share in the U.S. has grown steadily, reaching approximately 20% of total grocery sales in 2025. In Europe, private-label share exceeds 30% in many markets. Several factors drive this growth:

1. Inflation and value-seeking As grocery prices rose sharply from 2022 to 2025, consumers increasingly switched to store brands to save money. Many discovered that quality was comparable and stayed with private labels even as inflation moderated.

2. Quality improvement Store brands have invested significantly in quality. Kirkland, Trader Joe's, and Aldi products regularly win blind taste tests against national brands.

3. Retailer profit incentives Retailers earn higher margins on private-label products (typically 25-30%) compared to national brands (typically 10-15%). This creates a strong financial incentive to develop and promote store brands.

4. Consumer trust in retailers As retailer brands like Costco and Trader Joe's built strong reputations, consumers became more willing to trust their private-label products across categories.

What This Means for Brand Ownership

Private labels complicate the brand ownership landscape in several ways:

The same product, different owners: A cereal made by TreeHouse Foods might be sold as Kroger brand in one store, Great Value (Walmart) in another, and 365 by Whole Foods in a third. The manufacturer is the same, but the brand owner is different in each case.

Retailers become brand owners: When Costco sells Kirkland Signature products, Costco is the brand owner, even though the product was manufactured by a third party. This makes retailers competitors to the very national brands they stock on their shelves.

Manufacturing relationships are hidden: Unlike national brands where the parent company is discoverable, private-label manufacturing contracts are typically confidential. Consumers cannot easily find out who actually made their store-brand product.

How to Compare Private Label and Name Brand

Check the ingredients list. If the ingredients are identical or nearly identical (listed in the same order), the products are likely very similar, regardless of the price difference.

Compare nutrition labels. Identical nutritional profiles suggest similar or identical formulations.

Look at manufacturing codes. Plant codes, USDA establishment numbers, and "manufactured for" text can reveal shared production facilities.

Read reviews. Consumer comparison reviews and blind taste tests frequently reveal minimal quality differences between store and name brands.

Frequently Asked Questions

Are store brands made by the same companies as name brands?

In many cases, yes. National brand manufacturers frequently produce private-label products on the same production lines. Dedicated private-label manufacturers like TreeHouse Foods also supply many store brands. The exact manufacturing relationships are usually confidential.

Are private-label products lower quality?

Not necessarily. Many private-label products are manufactured to the same specifications as national brands. Some, like Kirkland Signature and Trader Joe's products, regularly win quality comparisons against name brands. However, quality can vary by category and retailer.

Why are store brands cheaper?

Store brands are cheaper primarily because they have minimal marketing costs. National brands spend billions on advertising, sponsorships, and promotional campaigns. Store brands leverage the retailer's existing brand and store traffic, eliminating these costs.

What percentage of grocery sales are private label?

Private-label products account for approximately 20% of U.S. grocery sales (by value) and a higher percentage by unit volume. In Europe, private-label share exceeds 30% in many markets, with some retailers like Aldi and Lidl exceeding 80%.

The Bottom Line

The line between private-label and name-brand products is blurrier than most consumers realize. The same factories, ingredients, and manufacturing processes often produce both. The primary difference is marketing: national brands invest billions in advertising to justify premium prices, while store brands pass those savings on to consumers. Understanding this dynamic helps you make informed decisions about where your money goes.

Explore brand ownership and discover who makes what at WhoBrands.

Explore Related Brands

• Trader Joe's - 80% private-label grocery chain
• Amazon Basics - Amazon's private-label empire
• Whole Foods - 365 by Whole Foods store brand

Browse all brands

Sources

1. Private Label Manufacturers Association. "Store Brands Market Data." 2025. 2. Costco Wholesale. "Kirkland Signature Brand Information." costco.com 3. TreeHouse Foods. Annual Report 2024. 4. Nielsen IQ. "Private Label Market Share Data." 2025. 5. Consumer Reports. "Store Brand vs Name Brand Comparisons." 2025.

All brand ownership data verified through WhoBrands.com's research methodology. Last updated: January 23, 2026.