News & Media

Big brands are struggling
August 8, 2017
Source: PLMA e-Scanner
“So Long, Hamburger Helper: America’s Venerable Food Brands Are Struggling.” That was the headline in a major feature article in The Wall Street Journal. It reported that “firms including General Mills and ConAgra were slow to address the twin threats of fresher, more modern fare and inexpensive store brands.” The publication noted that “store brands gained popularity around the financial crisis, and analysts expect their market share to rise as they add natural brands of their own and as discount chains, which mostly sell store brands, expand.” The article went on, “Private label product shelf space has expanded 3.5% a year since 2012, estimated Credit Suisse analyst Robert Moskow in a recent report. Big brands face escalating price pressure from the incursion of store brands and from retailers demanding lower prices, he wrote.” It noted that “the plight of the packaged-goods companies is a classic business tale. An industry creates winning products, carves out strong market positions and enjoys reliable, sustained revenue—only to be too slow to adapt to changes that threaten those cash cows.”