eli5, how do “store brands” work?
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There are companies called contract manufacturers or “white label” manufacturers that make particular types of goods. A store chain can either go to them with a recipe to make, work with them to develop one, or just have them package an existing product they make.
So maybe Costco goes to XYZ Baking Co. with a specific recipe for a chocolate chip cookies they want to sell under Kirkland brand. Wal-Mart goes to XYZ Baking Co. with a request for a 1lb. package of chocolate chip cookies that costs $1 or less to make, so they can sell for $2. They collaborate to develop the recipe that can hit that price point.
So one week the plant churns out the Kirkland cookies, the next week they make the Wal-Mart Great Value cookies.
These same plants may even make cookies for big name brands, too, when there are surges in demand (maybe Oreos get really popular due to a TikTok challenge), need for specialized baking equipment, need capacity for limited run products (say line of Christmas cookies), a way to reduce fixed costs by outsourcing, etc.
Same process plays out for all the various store label goods, whether cleaning supplies, ketchup, bacon, canned vegetables…
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