Private Label
Definition
Food products manufactured by one company (contract manufacturer) but sold under another company's brand name, common in Australian supermarket chains.
Key Takeaways
- •Private label products are manufactured by one business and sold under a retailer's or third-party brand — the brand owner is responsible for label compliance
- •The contract manufacturer must provide full recipe and allergen documentation to enable the brand owner to produce a compliant label
- •Retailer private label briefs often include strict category, format, and nutritional requirements that must be met at formulation stage
- •Brand owners cannot simply copy a competitor's label — each product requires its own NIP calculation, allergen review, and compliance check
- •Margin structures in private label are typically tighter than branded; costing accuracy is critical to avoid losses at retail
Regulatory Source
- Standard 1.2.2— Food identification — the label must carry the name and Australian address of the food business responsible for the product, whether or not they manufactured it
Last verified against current standards: April 2026
Regulatory authority: Food Standards Australia New Zealand
What is Private Label?
Private label (also called store brand, house brand, or own-brand) refers to food products manufactured by one food business and sold under another retailer's brand name. For example, a contract manufacturer in Victoria produces a sauce that Woolworths sells under the "Woolworths" brand. The sauce is private label — it is manufactured by one company but branded and sold by another.
Private label is extremely common in Australia — major retailers including Woolworths, Coles, Aldi, and Costco all have significant private label ranges. From a regulatory perspective, the key requirement is that the label must carry the name and Australian address of the food business responsible for the product — the retailer or brand owner — not just the name of the manufacturer, under FSANZ Standard 1.2.2.
Legal Responsibility for Private Label Products
When a retailer sells a private label product, the retailer (brand owner/responsible supplier) is legally liable for food safety and labelling compliance — not the contract manufacturer. If the product is found to be unsafe or mislabeled, the retailer is responsible for managing a recall and notifying authorities. This is why retailers are very particular about their suppliers' food safety and quality systems.
Under FSANZ Standard 1.2.2, the label must state: "[Retailer name] Pty Ltd, [Street address], [Suburb], [State], Australia." This signals to consumers who to contact with complaints or questions, and signals to regulators who the responsible business is.
Private Label in Practice for Australian Food Manufacturers
From the manufacturer's perspective: Producing private label for a major retailer is often a high-volume contract. Retailers typically require:
- An approved food safety certification (SQF Level 2 or equivalent)
- Detailed specification agreements covering ingredients, nutritional profile, allergens, packaging, and shelf life
- Regular product testing and quality audits
- Any labelling changes approved in writing before production
From the retailer's perspective: The retailer maintains responsibility for product safety and labelling accuracy, even though manufacturing is outsourced. They will typically have ongoing audit relationships with their manufacturers and may test products periodically.
Common issues:
Ambiguity about who is responsible. A private label agreement should clearly state that the retailer (brand owner) is the responsible business for labelling purposes, but the manufacturer is responsible for producing food that meets specification and safety requirements.
Delayed label approvals. If a manufacturer changes a recipe (e.g. switching suppliers for an ingredient, changing allergens), the new label must be approved by the retailer before production. Delays in approval can halt production.
Worked example: A Queensland jam manufacturer produces private label jam for Woolworths. The label states "Woolworths Pty Ltd, [address]". A customer reports glass fragments in a jar. Woolworths initiates a recall, notifies FSANZ, manages customer notifications, and investigates the root cause with the manufacturer. The manufacturer is responsible for process corrections; Woolworths is responsible for the public recall and regulatory coordination.
How Batchbase Supports Private Label Management
When you manage multiple private label products for different retailers, Batchbase allows you to configure different label templates for each retailer brand, storing the responsible business name and address for each. Recipe and allergen data is centrally managed, but label generation can be customised per retailer, reducing the risk of labelling errors across multiple brands.
Related Standards and References
- FSANZ Standard 1.2.2 — Food identification (responsible business name and address)
- FSANZ food standards code
Related Terms
Batch Tracking
The process of recording and managing production batches in food manufacturing, enabling forward and backward traceability from raw materials to finished products.
Contract Manufacturing
The production of food products by a third-party manufacturer on behalf of a brand owner, requiring separate recipe management, costing, and compliance documentation for each client.
Recipe Management
The systematic management of food product recipes including ingredient specifications, quantities, preparation methods, and version control.