The case of shrinking brand choice

Any trip through the two supermarket majors will bring you face to face (at eye level) -pardon the cliches- with inescapable brand shrinkage. It’s supermarket strategy. Unless you are number one or two brand nationally, they either won’t stock you or you’ll be a loss leader when they choose.

It is in order that the supermarkets get their own brand or three of merchandise in front of you at a lower price to “compete” with the established ones. These “House Brands” have a much higher profit performance for the supermarkets than the stocking of existing brands. For brands, it’s invidious. Not only are they hit with promo costs and extended payment terms, they are often not even at eye level where good point of sale take place.

We need to be careful. Allowing the move towards just one or two brands should bring into mind the 1973 movie Soylent Green. Just one brand, no choice and as for ingredient and quality control, not a pretty picture.

Support the brands! Go for choice otherwise you may find yourself without it.

Geoff Holt