Marketing

PFG blurs the line between proprietary and big-brand products

The distributor announced a deal this week to co-brand items from its in-house Sweet Encore dessert line with the Hershey name.
PFG described the deal as a first. | Photo: Shutterstock

Smudging the line between a distributor’s proprietary brand and selections from a big-name consumer-products supplier, Performance Food Group (PFG) said it is now marketing desserts produced in collaboration with The Hershey Co.

Under the arrangement, PFG is adding the Hershey name to items from the broadline distributor’s Sweet Encore dessert line that incorporate ingredients from the candy company. Those components range from chocolate and caramel to sell known Hershey products like Reese’s Pieces, Heath Bar Bits and Reese’s Peanut Butter Cups.

PFG characterized the arrangement as a first.

It did not reveal if the prices of Sweet Encore desserts had changed because of the co-branding move.

Distributors often vex suppliers by offering their own products as less-expensive alternatives to warehouse items carrying a big brand name. The proprietary goods are typically produced for the distributors under a private-labeling deal, meaning they come from reputable suppliers but just aren’t identified as such.

PFG is one of the restaurant industry’s largest distributors, with 150 North American locations supplying more than 300,000 foodservice outlets.

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