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The Minneapolis Business Journal reports that Lund Food Holdings is rolling out a broader private label program using three different value tiers.

The company, which operates stores under the Lunds, Byerly’s and Rick’s banners in the Twin Cities region, reportedly is using both the Lunds and Byerly’s names on the label of the top tier of products.

Coincidentally, as reported here on MNB earlier this week, the August 2005 issue of Consumer Reports writes that “buying store brands can not only get you high-quality products, it can save you hundreds, sometimes thousands, of dollars a year” and that comparisons conducted by the magazine suggested that in many cases, “store brands are at least as good as national name brands.”
KC's View:
Lunds and Byerly’s always have been exceptional at differentiating themselves from the competition, and this just demonstrates that the best often just get better.

The advantages of private label as a differentiator are being seen in a lot of places. Even Ikea, the home furnishings company, will introduce a line of private label foods – eventually expanding the current limited assortment of 150 grocery products it sells. While the company acknowledges that having Ikea private label foods will create new quality challenges, it clearly sees this as an opportunity worth exploiting.