Value Creation or Destruction: The Role of Private label in UK Grocery Category Management Decisions

Category management is a collaborative approach between food manufacturers and retailers to manage product categories rather than individual brands. It operates at both strategic and operational levels and seeks to create value ultimately for the consumer. The paper contributes to the literature and practice. It uses a qualitative interview study of twenty five senior practitioners and explores the role of private label products within UK grocery categories as consumers continue to switch due to lower prices and comparable quality to the traditional brands. The research also examines how private label manufacturers can create value within the category management relationship and how they can aspire to category captainship if they generate retailer specific and differentiated category strategies. The paper accepts its limitations and explains how further research in this important field of retailing is necessary to update the literature and help practitioners navigate their way through turbulent sector change.