A grey area exists in retail, where a practise is not illegal but it isn't transparent. When you discover the truth, you feel a little conned and possibly cheated.
The term white label refers to when a product is manufactured by a third party but sold by a wholesaler/retailer, rebranded as their own. It is different to private label where the brand owner contracts a manufacturer to make the product to the brands specifications. With private label the brand owner retains control over product attributes. In white label agreements the manufacturer controls the product attributes, including quality, fit for purpose and efficacy. They also control the number of individual customers/brands being supplied the product to retail. The purchaser of the white label product or products is responsible for branding and marketing, managing lead times and logistics with the manufacture. Production including sourcing of ingredients or components remains solely with the manufacturer. A brand could have multiple products all being supplied by different third party manufacturers in white label agreements.
White label strategy is used in a variety of retail segments including personal care products, haircare, skincare etc, health and wellness, vitamins, protein powders, collagen supplements etc, food and beverage, processed packaged foods, coffee, wine etc. White label allows retailers to offer products without having to invest in product development and production processes. It removes a barrier to entry into the retail segment of needing any relevant technical skills, I could enter into a white label agreement with a car manufacturer and brand it as my own. I know nothing about car assembly, safety requirements, environmental compliance and possess no mechanical or engineering skills but I could own a car brand via a white label agreement. All I need to do is pay for the stock.
In the Australia wine industry white label, is called BOB (Buyers own Brand) it is also known as OEM (Original Equipment Manufacturer).
Ever wondered why there are so many wine brands/labels? Wine Australia estimates in December 2023 there were 2156 wineries in Australia. Each of these wineries can have multiple brands and labels. There is no way of knowing how many wine brand/labels are available for retail sale at any one time as unlike the actual winery which has to apply and be granted a production license and complete annual crush audits, there is no mechanism or legal requirement to register each brand/label. If each of the 2156 wineries had 20 labels that equates to 43120 wine labels This number doesn't consider international wine labels available in Australia.
This is the reason you are confronted by 1000’s of wine labels when you enter a retail store. Many of the labels although looking very different, can be owned by the same producer containing the same wine or the same wine is branded by different producers. Producers who do not own a physical winery or vineyard are known as virtual brands. If two bottles of wine have the same vintage, varietal and regional claims i.e. 2024 South Eastern Australia Sauvignon Blanc check the producers address on the back label if it is the same between the two bottles it is more than likely the wine is the same with different labels.
During the 90’s I worked with a wine blend that went under 32 different labels. It was the same wine, 32 different labels with varying price points all looking like individual, bespoke, unique wine with a story.
The same happens with skincare. Brands approach a manufacturer who has a recipe/formula that is already part of their manufacturing portfolio and enter an agreement to purchase x number of units. This agreement can be a one off or ongoing. The purchaser brands the product and the product enters into the purchaser’s distribution and retail system.
This white label model occurs with all types of skincare products including skincare claiming organic, natural and/or clean. A 1000kg skincare formulation makes 33,333 units at 30gms each or 20,000 at 50gms each. If you Google "skincare Australia" you get an estimated 197,000,000 search results. How many of these brands/products contain the same formulation?
Vitis V controls the entire production process of Vitis V Face TonIQ. We source the unfermented grape seeds that we use to make our own cold pressed grapeseed oil. We make our own white grapeseed extract. Both our ingredients are made without heat or solvents ensuring the entire phytonutrient profile of the grape seed is captured. We can use the legal term “naturally occurring” as our processes do not change the chemical structure of the phytonutrients, they remain in the identical chemical state as they are found in nature.
We know the provenance of our ingredients and control the entire making, blending, bottling and retail. Vitis V Face TonIQ is crafted by people who care about sustainability and efficacy, using naturally sourced ingredients up-cycling a valuable byproduct of winemaking that contains essential skin nutrients. It is one product that replaces 10+ skincare products with 9+ functional benefits built on the link between science, function of skin and the regenerative power of nature.
Your skin is a nature designed system it needs nature designed skincare. Not products that have been highly processed from chemically engineered ingredients that contain predominately water emulsified with surfactants, with added preservatives, fragrance/parfum and/or photo-toxic, allergic inducing essential oils manufactured by a third party from a brand with negligible responsibility.
Products that may or may not be identical to another brand, as they have come out of the same vat with the same formulation. Any product that contains the ingredients of surfactants, preservatives, fragrance/parfum and essential oils disrupts, compromises and damages skin function.
Vitis V Face TonIQ’s short shelf life is your guarantee of purity. It does not contain water, surfactants, preservatives, fragrance/parfum or essential oils.
Vitis V Face TonIQ is made with provenance.
Crafted not formulated.
Blended not emulsified.
Small batch ensuring freshness and potency.
Not only can skincare brands white label their products but they can also off shelf and mock up their imagery as per the example of the image attached to this article.
Where does your skincare brand come from? Is it white label with no soul and damaging your skins own regenerative functions?