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

It’s a mix. Sometimes it is exactly the same product, made in the same place, just with a different label. Other times it was made by a company that specializes in producing generic versions of the product and likely sells to lots of different grocery stores under different labels.

The companies that run the stores themselves generally don’t also directly oversee the production of the house brands. Target’s expertise is in retail, not potato chips.