How do store brands get so close to name brand?

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Do they have food scientists just guessing and checking with taste testers? Or do they know the exact recipe somehow and just tweak it to avoid lawsuits? Or do big box stores require name brands to hand over their recipes as part of a contract to shelf their brand along with their own store brand? Do the name brands try to keep it a secret but they keep getting bested? I have no idea how this works.

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Anonymous 0 Comments

In basically almost all major branches you have only a few suppliers for certain things.

A former professor of mine worked in a major food production company and basically how it works is that most store brands just buy the product from the brand name and slap their own label on it. In some cases it is the same product, in other’s you have products that didn’t make the quality cut of major brand and are then sold under the market brand. In addition they might be able to increase capacity and use those extra capabilities to create the same product with lower quality ingredients( think like top 20% instead of top 1%).

The profit margins are literally in the hundreds or 1000’s of percent, which means they can also just sell the same recipe for less, as a middle price, low price and higher priced brand product.

This also works in other industries. Take cars for example. Audi, VW, Porsche, Lamborghini all use the same alternator and just slightly different screwing mechanism or in same cases just a different label. The same is true for wheel rims. There is a few big manufacturers who supply all of the major brands.

Even engine’s are equal in a lot of cars as most car brands belong to one major company and just get electronically limited.

VW Group(Porsche, Audi, Bentley,Scout, Seat,Skoda,Jetta,Cupra, Ducati,Lamborghini, VW,etc) ;

Mercedes Group( Mercedes, AMG, Smart, Maybach) ;

Stellantis Group ( Opel,Fiat,Dodge, Citroën,Abarth, Alfa Romeo,DS,Lancia, Maserati,Ram, Peugeot,Vauxhall, Jeep, etc)

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