Why does every major grocery chain have their brand next to the national brands? Are the factories making these the same but putting a different label on it? Or does Target and Kroger have factories that produce all the products? Where do these store brands come from?

Question

Why does every major grocery chain have their brand next to the national brands? Are the factories making these the same but putting a different label on it? Or does Target and Kroger have factories that produce all the products? Where do these store brands come from?

In: Economics

Answer 1

A lot of the time is it the same item but different qualities, for example, Mcvites (UK biscuit company) will pay for the biscuits cooked in the center of the oven which are softer and lighter. The own brands will then get the ones on the outside which are not as evenly cooked and crunchier.

There are probably loads of examples of this.