The news: Aldi will put its name on every private label product it stocks—over 90% of its assortment—as part of the largest packaging refresh in company history.

The details: Aldi is simplifying its private label assortment as well as making its packaging brighter and bolder.

• The discount grocer is reducing its store brands from around 90 to 26 and introducing its first-ever namesake private label. Products that don’t fall under the new Aldi brand will be labeled “An Aldi Original.”
• The company is also making product descriptions clearer and adopting shopper nicknames for popular items like Red Bag Chicken.

Aldi framed the move as a response to customer behaviors. Since shoppers already tend to refer to Aldi products as the “Aldi brand,” as chief commercial officer Scott Patton told CNN, the rebranding should be a light lift with minimal risk of confusion.

Our take: Aldi’s decision to stamp its name across nearly every product it sells reflects a fundamental shift in how shoppers perceive private labels. Once primarily chosen for their price point, private labels are now drawing consumers with quality, variety, and attractive packaging. Nearly three-quarters (72%) of US digital shoppers view store brands as a good alternative to name brands, according to a December Nielsen survey.

The Aldi mark could also protect the company from lawsuits from disgruntled consumer packaged goods (CPG) companies trying to protect their name brands. Aldi is already facing a suit from Mondelez charging that the grocer “blatantly” copied the packaging for Chips Ahoy, Oreo, and other iconic brands. Making it clear that the products are manufactured by Aldi could reassure CPGs while still allowing the retailer to deliver its own versions of their iconic products.