According to the Consumers’ Association, private labels are generally cheaper than A-brands, about 45%. Although they use the same raw materials as sugar, wheat, flour and vegetable oil. Both private label suppliers and brand A manufacturers therefore have to deal with price increases, for example because these raw materials become more expensive and transport costs rise.
Strong Negotiations
Thijs Geijer, food economist at ING, says there are several reasons why A-brands in particular are becoming more expensive. “A brand producers probably started price increases earlier, passed on higher raw material prices earlier and private label brands followed prices more.”
Geijer also says that A-brands have a stronger negotiating position than private label suppliers. “Of course there are strong bargains with both, but consumers expect premium brands in the store. This helps manufacturers implement price increases. For a particular brand, supermarkets can always choose to have it produced by another manufacturer.
Source: RTL
Smith Charles is a talented entertainment journalist and author at The Nation View. He has a passion for all things entertainment and writes about the latest movies, TV shows, music, and celebrity news. He’s known for his in-depth interviews with actors, musicians, and other industry figures, and his ability to provide unique perspectives on the entertainment industry.
