Food Processing - May 2008 - (Page 12)

NEWS BITES • R E TA I L I N G • Price strategy hurts store brands, even in hard times WHILE SOME WOULD EXPECT THE ECONOMIC downturn to benefit low-price private label products, any benefit may be short-lived if food processors and retailers are not careful, the chairman of the Private Label Manufacturers Assn. (PLMA) warned in March. Bill Bond, chairman of PLMA and sales vice president of Willert Home Products, a private label manufacturer, warned that a preoccupation with low-price store brand strategies could backfire. He spoke at PLMA’s Annual Meeting & Leadership Conference. “Returning to their familiar playbook from the early nineties, the [national] brands will no doubt rush to reassure Wall Street that private label’s success is merely the result of a down economy, and as soon as things improve, consumers will flock back and again be happy to pay a premium price for the national brands they love,” Bond said. He urged retailers to “set limits on the influence of national brands” and use their private label programs to build their own brands. The conference’s theme was “Best Practices: A Rising Tide Lifts All Ships,” but one of the most popular sessions was a panel discussion on “Worst Practices: What Not to Do and Why We Do It Anyway.” Worst practices included: An overreliance on price, a focus on “national brand equivalency” that leads to “me-too” private label products, and a subordination of private label to the promotional strategies of the national brands. Briefly Sanderson Farms Inc., laurel, Miss., in April confirmed that sites in Kinston, N.C., have been selected for a $127 million poultry complex, including a hatchery, feed mill and poultry processing plant. At full capacity, the complex will employ approximately 1,500 people, will require 130 contract growers, and will be equipped to process and sell 6.7 million pounds per week of dressed poultry meat. Sara Lee Corp. in April laid off roughly 300 staffers throughout its North American operations, including about 100 at its Downers Grove, ill., headquarters. The company said the layoffs were part of cost-cutting moves aimed at improving profit margins. The Shape of Things to Come Perfect shapes. Home-made quality. Consistent weight control. You get it all from NuTEC. 8 Food Formers form vegetables, beef, pork, sh, poultry, and many other products. Meatballs, patties, nuggets, links, rings, strips or sticks. We’ve got the shape you need. For your FREE brochure, visit www.nutecmfg.com or call (815)722-2800 http://www.nutecmfg.com http://www.nutecmfg.com

Table of Contents Feed for the Digital Edition of Food Processing - May 2008

Food Processing - May 2008 Editor’s Plate NewsBites The Trends Rollout Food Biz Kids Product Developer turned Bean Counter The top-selling new products of 2007 The open road Back to the Big Easy Managing the global plant A new column with answers to your plant-fl oor questions New Supplier Products Toops Scoops

Food Processing - May 2008

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