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In September 2020, the International Business Times announced that Aldi would be making its
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advent cheese calendars available in early November. The Emporium Selection Cheese
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Advent Calendar is one of Aldi's most popular items, and it only costs $14.99. Even though
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the quantity of cheese is small enough to fit in each day's square, the advent calendars are just
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another instance of Aldi providing incredibly cheap cheese at a quality worth having.
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Anyone who knows of Aldi knows about their cut-to-the-bone style
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that allows for low prices that even Walmart struggles to compete with.
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In 2019, CNN ran a piece in which Greg Foran, Walmart's US CEO, had this to say:
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"I've been competing against Aldi for 20-plus years. They are fierce and they are good."
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The article goes on to list several well-known examples of why Aldi runs so efficiently. For
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instance, Aldi's shopping carts must be returned, which saves on wages wasted on cart runners.
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However, these reasons don't completely explain why Aldi's cheese, in particular,
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is so incredibly cheap. Aldi can get away with selling good supermarket cheeses at a low price
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because of their practice of selling almost all their stock as a private label,
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a practice best illustrated by their American counterpart, Trader Joe's.
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The connection between Trader Joe's and Aldi stems from a separation of Aldi into Aldi Nord,
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or North, and Aldi Süd, or South, in the 1960s. In 1971, as Mark Gardiner,
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author of Build a Brand Like Trader Joe's, explains, Theo Albrecht,
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the German owner of Aldi Nord, bought Trader Joe's. The Aldis seen in the US today belong
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to Aldi Süd. They're competitors but operate according to the same logic.
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Like Aldi, Trader Joe's relies heavily on private labels. Sara Nesbitt,
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CEO of Coastal Carolina Soap, explained to Business.com what "private labeling" entails:
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"[Private labeling] is selling products
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a business makes under another company's or business's brand."
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Additionally, it could also mean using an ingredient supplied by a separate
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company to produce one's own product without attribution. The seller has to directly pay
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for the product's creation but has the freedom to alter it before selling it.
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"They're selling, Mortimer."
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"Well, that's ridiculous."
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This arrangement allows for the cheap prices that suck people into Aldi and Trader Joe's. By cutting
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out the premade aspects of the product, the seller lowers the amount they need to charge to
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make a profit. Furthermore, doing this allows the seller to change the product however they want.
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This is why Aldi has an easy enough time producing all kinds of cheap cheeses and advent calendars.
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Since they can develop their wares however they want,
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they can opt to redirect some of their cheese into advent calendars,
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an option unavailable when buying an already packaged product.
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According to a pamphlet from the 2019 Private Label Trade Show,
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the private label market has reached 25 percent of all US sales. While loyal shoppers at stores
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like Aldi and the Aldi Nord-owned Trader Joe's certainly contribute to this number,
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it more generally reflects how pervasive this hush-hush market practice is.
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The extent of this secrecy grows apparent when you attempt to find out where these foods come from.
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More than 90 percent of Aldi's products are private label, and their labels leave a lot
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to the imagination. Its cheese offerings are given vague yet aspirational-sounding
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names like "Emporium Selection" or "Specialty Selection" or "Happy Farms."
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In 2017, Eater commented on this phenomenon in an article about the brands behind Trader
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Joe's brands. In the piece, reporter Vince Dixon quoted from Gardiner's book, writing,
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"Suppliers aren't allowed to say they supply Trader Joe's products
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and Trader Joe's never willingly talks about who their suppliers are."
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However, by looking at the FDA's recalls of certain Trader Joe's offerings,
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you can discover that Naked Juice and Stauffer's animal crackers are among
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the name-brand items Trader Joe's rebrands as its goods.
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Trader Joe's also likes exclusive partnerships with private labels, as might Aldi. And cheese
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lovers reap the benefits. Happy Farms' American cheese tastes like Kraft's version.
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It may be Kraft-produced for all we know, but it's cheaper. As long as we can still buy decent
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quality cheese at a low cost, we will happily put up with the mystery of private labeling.
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