Private Label Is Growing. Is Your Facility Ready?

Private label has evolved far beyond its “generic” beginnings. 

Twenty years ago, value brands were perceived as lower quality. Today, private label products often rival national brands in both quality and customer loyalty. 

So why does this shift matter for food and beverage retailers? 

Because bringing production in-house is no longer just a cost-saving move—it’s a brand-building one. It allows you as a retailer to: 

• Control quality from ingredient to shelf. 
• Innovate faster, without relying on third-party manufacturers. 
• Safeguard supply chains against disruption. 
• And most importantly, create a direct dialogue with consumers. 

Consumers are no longer choosing private label only for price; they’re choosing it for trust and taste. As more retailers move production in-house, the real differentiator isn’t the recipe.  

It’s the facility behind it. 

As Bob West, our Senior Vice President of Food & Beverage, explains, private label is now one of the most strategic levers in the food and beverage industry. It’s how retailers connect with their consumers and how consumers speak directly back to the retailer. 

If you’re considering taking production under your own roof, here are five key factors to evaluate before you begin. 

1. Know Your Regulatory Requirements Early 

Once you move from retailer to manufacturer, your regulatory landscape changes…and your facility must change with it. 

If you ship across a state line, you’re now regulated by the USDA. If it stays within a state jurisdiction, it’s regulated by the health department. That’s two different standards for how the facility has to be built. 

Why you should care: Those differences affect design, materials and compliance costs. Knowing your oversight structure from day one prevents expensive redesigns, re-inspections, or lost time. 

2. Strengthen Supply Chain Control and Traceability 

Owning production means owning everything upstream. Private label facilities must manage raw ingredients, sanitation and full traceability across the supply chain. 

Take bread, for example: flour, sugar, oil, yeast, eggs…it all must be properly stored, tracked and sanitized. 

If soybean oil from Iowa is recalled, can you trace it through to the products you’ve sold in Florida? You’ll need to.  

Why you should care: Supply chain visibility protects more than operations; it protects your brand. A single misstep in traceability can undo years of consumer trust. 

3. Decide Whether to Build New or Retrofit 

Speed-to-market and long-term efficiency often pull in opposite directions: 

• Retrofit: Gets you producing faster, but can be more expensive to bring a facility up to food-grade standards. 
• Greenfield: Purpose-built and more efficient long-term, but slower to launch. 

Our Food & Beverage team partnered with a retailer who chose a retrofit for speed, investing $45 million in an 80,000-SF facility. We called it trying to build inside a Coke can. Within one year, the retailer had products rolling off the line: proof that retrofit can pay off if speed is the priority. 

Why you should care: The right path depends on your timeline, capital and growth strategy. Defining priorities early helps avoid rework or missed market opportunities. 

4. Plan for Automation and Adaptability 

Private label growth depends on flexibility, and so does your facility. 

Key infrastructure elements include: 

• Clear height for utility runs and future automation 
• Linear flow (raw goods in, finished goods out) to prevent the mixing of raw and finished goods 
• Dock space separated for inbound and outbound traffic 
• Adequate utilities for power, water, sanitary systems and wastewater handling 

Why you should care: Designing with automation and utility demands in mind helps future-proof your facility as technology and production volumes evolve. 

5. Understand the Risk—and Responsibility—of Manufacturing 

Bringing production in-house means taking full ownership of food safety and certification. 

There’s a lot of risk in manufacturing your own product. You put your store brand on the line because if it is recalled, it’s on you. 

Most retailers already require SQF (Safe Quality Food) certification from suppliers. Once you become the supplier, you’re holding yourself to the same standard. 

Why you should care: Inconsistent processes can lead to recalls, liability and long-term reputational damage. Operational rigor becomes brand protection. 

The private label boom offers a significant opportunity—but also a significant responsibility. Success depends not only on consumer demand but on having a facility built to meet that demand safely, efficiently and at scale. 

Regulations, traceability and infrastructure all shape your ability to compete. The companies that plan for automation readiness, scalability and speed to market will be the ones that lead this next era of private label. 

Our team at Ryan combines national development, design and construction expertise with deep experience in food facility requirements. From land acquisition to the production line, our team helps food and beverage leaders create safe, efficient and future-ready facilities. 

In today’s private label market, the right facility isn’t just an operational asset—it’s a brand advantage.