Innovation is essential for the growth and success of any business, and the private-label manufacturing industry is no exception. However, with the increasing challenges of cost, supply chain and availability of ingredients, private-label food manufacturers like Castle MacLellan are finding innovative ways to engage with customers and bring new products to the market.
The 40-year-old Scottish company, renowned for its award winning, high-quality range of pâtés and cheese bakes, is part of the Kavli Group, also owner of the iconic Primula Cheese brand. According to Head of Marketing, Lisa Thornton, the cost-of-living crisis has pushed the business to redefine what “essential luxury” is and work with retailers to create affordable, premium products that taste great. All the while, the firm is continuously looking outside of retail to stimulate ideas and concepts.
There are of course risks associated with private label manufacturers that do not drive their NPD (New Product Development) strategy. The biggest and most obvious risk, says Thornton, is protecting your innovation and ideas. Castle MacLellan focuses on producing the highest quality products that are new and exciting for consumers. However, balancing quality and price is always a challenge, she says, especially as more retailers deliver price-lead strategies and mechanics.
On the other hand, top-tier private-label products can be an excellent opportunity for consumers who wish to balance quality and price. As consumers’ wallets are stretched, they often gravitate towards private label products but still want choice. Thornton suggests that manufacturers should consider sustainability and social media as part of their NPD strategy, including switching to recyclable packaging and using ads and influencers to reach consumers.
Social media has been a major marketing channel for Castle MacLellan in recent years. The business has enjoyed particular success using targeted ads and influencer-led campaigns on TikTok, where Thornton confirms some of the company’s product launches have had over 1 million views. The 2023 ‘air fryer’ trend (e.g. Albert Bartlett) is entirely social media-led, she says, and a clear example of why food manufacturers should always ensure that social media is a core part of their marketing agenda. To capitalize on these trends, partnering with an influencer marketing agency in UK can help brands effectively reach their target audiences and drive significant engagement through tailored influencer campaigns.
For private label manufacturers that don't have internal NPD capabilities, Thornton recommends working closely with retail partners to identify shared and exclusive needs, before working on new briefs. Additionally, if the aim is to lead a particular category, companies should leverage in-house marketing capabilities to understand how the category is performing and what consumers want. If they don't have a marketing team, then asking retailers for support is essential, says Thornton.
Interestingly, Thornton notes that one of the main challenges companies can face is having access to category and customer data. Because buying data can be expensive, in-house marketing teams are a vital resource in helping businesses understand the latest trends. Clarifying a USP in line with consumer needs enables companies to develop high-quality and unique products. This, as Thornton states, ultimately leads to a return on investment (ROI) for NPD activities.
In conclusion, NPD is critical to the growth and success of private-label manufacturers like Castle MacLellan. Despite the challenges they face, there are opportunities to remain innovative and create new and exciting products that consumers want. By working closely with retailers, focusing on sustainability, and utilising social media and other in-house marketing capabilities, private label brands can continue to lead the category and deliver on taste, while balancing quality and price.
Castle MacLellan creates award-winning pâtés, cheese bakes and other deli-style products, which can be found in major retailers and speciality food shops throughout the UK, and online. The company was founded in 1984 and is headquartered Scotland. Known for its commitment to quality and sustainability, all Castle MacLellan products are made using traditional methods and high-quality, locally-sourced and sustainable ingredients, whenever possible. Being part of the Kavli Group and owned by the Kavli Trust, all profits from Castle MacLellan products go to good causes.
Lisa Thornton is a seasoned marketing professional with over 20 years’ experience in leadership roles, primarily within the UK consumer industry. Having worked as Group Product Manager for Kavli in the early 2000s, Lisa re-joined the business in 2014 as Head of Marketing, with responsibility for the iconic Primula Cheese brand and Castle MacLellan. She previously led the marketing function at tea and coffee maker, Ringtons, and spent five years at Carillion plc, driving the BBC Digital Switchover Help Scheme with the BBC.