Major Manufacturers producing Private Label Brands
Private-label brands now account for one of every five itemssold in US supermarkets, drug chains, and mass merchandisers A controversialmove by some marketers of major brands is to supply private-label makers Forexample, Ralston-Purina, Borden, ConAgra, and Heinz have all admitted tosupplying products – sometimes lower in quality – to be used for privatelabels
Other marketers criticize this strategy, maintaining thatthese actions, if revealed, may create confusion or even reinforce a perceptionby consumers that all brands in a category are essentially the same Choose aside, arguing that manufacturers should feel free to see private labels as asource of new revenue or that national manufacturers should never get involvedwith private labels
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