Understanding Lidl's Private Label Strategy
Lidl's business model relies heavily on its private label brands, such as Milbona for dairy products, providing high-quality goods at lower prices than national brands. This strategy gives the retailer greater control over its supply chain, products, and costs. Instead of owning and operating its own dairy production facilities, Lidl partners with a range of manufacturers to produce items under the Milbona label. This approach offers several key benefits, including the ability to adapt to regional tastes and regulations, and to negotiate favorable terms with multiple suppliers, which helps keep costs down for consumers.
Who Are the Milbona Yogurt Manufacturers?
Because Lidl operates in numerous countries across Europe and beyond, it relies on a diverse network of dairy manufacturers. The specific company that makes a particular Milbona yogurt can change depending on factors like location, production capacity, and product type. For example, the traceability code on a product's packaging can often reveal its manufacturing origin.
Notable examples from Open Food Facts and news reports:
- Greek Style Yogurt: The
Greek Style Yogurtsold in Finland, for instance, has a traceability codeDE BY 303 EG, indicating it was manufactured in Germany using milk from Germany and the Czech Republic. - Greek-style in UK and Ireland: A specific Greek-style yogurt in the UK and Ireland has been noted to switch from being made in Germany to the Republic of Ireland, which impacted the product's taste.
- Authentic Greek Yogurt: In contrast, the
Milbona Authentic Greek Yogurtis a premium, strained variety that is actually made in Greece, as required by UK regulations for labeling. - UK-specific yogurt: Another
Milbonayogurt product sold in the UK has a traceability code (GB TF 030) linked to a dairy in Telford, UK. - Müller Association: In 2020, during a product recall, it was reported that dairy giant Müller produces Milbona yogurts sold at Lidl, alongside its other own-brand products. This indicates a partnership with a major, well-known dairy producer.
Why Does Lidl Use Multiple Manufacturers?
The practice of using multiple third-party manufacturers is a deliberate and strategic decision by Lidl. It ensures a robust and flexible supply chain that can cater to different markets. By not relying on a single producer, Lidl mitigates risks associated with production issues, supply shortages, and regional-specific demands. This approach is standard for many large retailers with extensive private label offerings.
Benefits of Lidl's multi-supplier model:
- Flexibility and Scale: Using different manufacturers allows Lidl to rapidly scale production and distribution to meet high consumer demand across its international footprint.
- Cost Control: Multiple suppliers foster a competitive environment, allowing Lidl to negotiate better prices and keep its products affordable.
- Product Diversification: Specific manufacturers may specialize in certain types of dairy products, allowing Lidl to offer a wide range of yogurts, from standard Greek-style to organic or high-protein varieties.
- Regional Sourcing: In some cases, sourcing from local or regional suppliers can reduce transportation costs and support local economies, an important part of the company's sustainability efforts.
- Quality Control: Lidl maintains strict quality control over all its suppliers, ensuring that every product, regardless of origin, meets its high standards.
How to Identify the Manufacturer of Your Milbona Yogurt
For consumers interested in exactly who made their specific tub of yogurt, the packaging is the most reliable source of information. The traceability code, often labeled as EG, DE, GB, etc., followed by a series of numbers, is a powerful clue. This code indicates the country and specific plant where the dairy product was processed. Sites like Open Food Facts can sometimes provide further details on what these codes correspond to, giving consumers insight into the origin of their food.
Comparing Milbona Varieties: Authentic vs. Greek-Style
One of the most confusing aspects for consumers is the difference between Milbona's 'Authentic Greek Yogurt' and its 'Greek-Style' variant. The distinction in manufacturing location is significant.
| Feature | Milbona Authentic Greek Yogurt | Milbona Greek-Style Yogurt |
|---|---|---|
| Origin | Must be made and strained in Greece. | Made in various countries, including the UK, Germany, and Ireland. |
| Production | Strained process, resulting in a thicker, creamier texture and higher protein content. | Made from set milk, with a thinner consistency and generally lower protein level. |
| Ingredients | Made with Greek milk and ingredients. | Ingredients may be sourced from various countries depending on the manufacturer. |
| Price Point | Typically a more premium and higher-priced product. | Positioned as a value-for-money option for everyday consumption. |
Conclusion
In summary, Milbona is not produced by a single company but is a private label brand owned by Lidl, and its yogurt is manufactured by a network of different third-party dairy producers. The specific manufacturer varies by product type, such as Authentic Greek or Greek-style, and the country of sale. This multi-supplier strategy allows Lidl to offer a diverse range of affordable, high-quality products while maintaining a flexible and efficient supply chain. For those curious about a specific product's origin, the traceability code on the packaging offers the best clue to its manufacturing location.
