This much written about war between national brands and Private Brands continues to draw much attention form the press, and according to this article from Ad Age continues to escalate. National brand marketers shout the end of retailers who go to far and Private Brand manufacturers take every sku they can get meanwhile only time will tell how this war will conclude or if it is a war consumers care about.
From CVS to Costco, Retailers Put the Screws to Brands
Coke, Energizer Ditched in Price Fight, CVS Bills to Make Up Profit Deficit
Marketers are facing the litmus test of whether their brands truly are indispensable as retailers show a growing willingness to boot even major, well-advertised brands to improve leverage, margins and lower prices.
Costco’s recent decision to strip Coca-Cola products from its shelves in a pricing dispute is the highest-profile sign yet that the age-old battle between marketer and retailer is escalating, due to the growing power of private label, looming package-goods deflation in the face of falling commodity prices, rising pressure on retailer margins, and softening volumes. Facing those factors and armed with data from loyalty cards, retailers are getting savvier about which brands to keep and which to lose.
CVS/Caremark plans to remove most Energizer alkaline batteries from its stores by early next year, according to Deutsche Bank analyst Bill Schmitz, leaving just Duracell and private label. And Walmart, which stepped up efforts to pare brands from its shelves this year, will reduce assortments even more aggressively next year, according to manufacturers and analysts.