Typically I avoid stories that are primarily manufacturer focused in favor of stories that speak to building brands, however news of mega Private brand manufacturer Ralcorp acquiring American Italian Pasta Co. (AIPC) is news by any standard.
According to the Ralcorp press release:
“We are excited about the addition of AIPC to the Ralcorp family,” said Kevin Hunt, co-CEO and president of Ralcorp. “This transaction strengthens our position as a diversified provider of private label and branded food products, and we anticipate that by adding AIPC’s No. 1 position in private label dry pasta, strategically located production facilities, solid brands and top-tier consumer base to Ralcorp’s capabilities, we will be able to better address a broader spectrum of customer and consumer needs.”
As the economy improves manufacturer consolidation has the potential to significantly impact the creation and growth of engaging Private Brands. Ralcorp has purchased more than 20 companies in the past decade
Only time will reveal the impact of this significant move.