The increase of privqate labels in food retailing and retailers' high expenditures for establishing their store brands or private labels raise one central question; Do consumers really consider private labels as real brands and develop "loyalty" towards them? In recent time's, Bangalore has witnessed growth in sales and development of private labels, but does this fact also support the aspect of Consumer loyalty towards private labels, specifically in the food & grocery departments. Intense competition in the market has forced retailers to rethink their strategies to compete with company brands.Now, it becomes vital for the retailers to look out for new avenues and spportunities to make their customers happy.This paper seeks to analyse the level of acceptance of private labels and their layalty towards the same at large. This analysis thus proves that private labels are being successful in positioning themselves signigically in the mind of the customes and are gaining acceptance. With acceptance come's belief, preference and loyalty.