Major Manufacturers producing Private Label Brands
Private-label brands now account for one of every five items
sold in U.S. supermarkets, drug chains, and mass merchandisers. A controversial
move by some marketers of major brands is to supply private-label makers. For
example, Ralston-Purina, Borden, ConAgra, and Heinz have all admitted to
supplying products – sometimes lower in quality – to be used for private
labels.
Other marketers criticize this strategy, maintaining that
these actions, if revealed, may create confusion or even reinforce a perception
by consumers that all brands in a category are essentially the same. Choose a
side, arguing that manufacturers should feel free to see private labels as a
source of new revenue or that national manufacturers should never get involved
with private labels.
