Word: brandsness
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Although many private brands sell at lower prices, they are really a long-range detriment to the consumer, charges Henry Abt, president of the Brand Names Foundation. Says he: "Private labels ride the coattails of makers' brands. No private label past or present has ever pioneered a new product...
Supermarkets often shunt private labels to bottom shelves, place their own house brands at eye level. National brands are often stocked in insufficient quantities, and money from national-brand cooperative advertising has been known to find its way to advertise private brands in local newspapers.
The shift to private labels has often been aided by the national-brand makers, who offered profit margins so small that supermarkets were forced to turn to private brands. "Take the case of detergents," says pro-national-brands Paul Willis, president of Grocery Manufacturers of America. "There's as...
So tough has the competition from private labels become that some national-brand makers turn out both, in the hope of lowering overall production costs and gaining a more favorable reception for the manufacturer's name-brand products. In many cases the quality is exactly the same, but the...
But there is a hard core of national brands that the private labels have never been able to copy successfully. These include Campbell's soups, Heinz's Ketchup, Gerber and Beech-Nut baby foods, Betty Crocker and Pillsbury cake mixes, Kellogg and Post cereals, General Foods' JellO...