Store Vs. National Brands

Jul 21, 2003

By George Anderson

Retailers are emphasizing their own store brands as branded manufacturers such
as Kraft Foods are saying it’s hurting their business.

Last week, Kraft attributed weaker than expected financial results for the
second quarter to the company’s “inability to keep prices in line with cheaper
brands that lured away price-conscious shoppers,” according to Reuters.

Keith Patriquin, analyst, Loomis Sayles said, “Consumers’ discretionary spending
level falls and they’re more likely to go to private label. I would definitely
keep an eye on these things.”

Moderator’s Comment: Last week, it was officially announced
the recession had come to an end. Will an improving economy be better for national
brands and worse for value-priced and store brands as in the past?

If the recession is over, there are still a lot of people
around the country who haven’t received the memo.

Anderson – Moderator

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