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Effects of the Private-Label Invasion in Food Industries

Michael Ward, Jay Shimshack, Jeffrey Perloff and J. Michael Harris

American Journal of Agricultural Economics, 2002, vol. 84, issue 4, 961-973

Abstract: Using supermarket scanner data, we test a variety of hypotheses from trade journals about the invasion of private-label food products. According to conventional industry wisdom, name-brand firms defended their brands against new private-label products by lowering their prices, engaging in additional promotional activities, and increasingly differentiating their products. Our empirical evidence is inconsistent with these beliefs. Copyright 2002, Oxford University Press.

Date: 2002
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