Pet-Food Industry's Little Secret

Tusslers

None of the myriad cat foods our guys eat were on the list of recalled items, but if you've ever wondered why certain brands cost more than other brands even if the food itself looks the same: much of it comes from the same place.

Advertising Age - Recall Sheds Light on Pet-Food Industry's Little Secret : The massive national pet-food recall stemming from deaths of at least 10 pets is also letting consumers in on one of the industry's well-guarded secrets -- that some of most premium pet-food brands in the U.S. use the same manufacturer that processes dozens of low-price private-label products.
...“Branded companies for years when they used co-packing arrangements have tried to keep that their little shoppers' secret,” said Burt Flickinger, principal with the consulting firm Strategic Resource Group. “But now this whole scandal can dismantle the pricing architecture for branded products when consumers can see that branded is essentially the same stuff with a higher price point.”

“Most consumers will give them the benefit of the doubt that they must have separate formulas for expensive Eukanuba,” said Laura Ries, president of marketing consultancy Ries & Ries. “In many cases you know with private labels that those products are coming off the same belts as the branded products, and in some cases there is very little difference. ... But most people want to believe in brands, buy brands and trust brands.”

Depending on how long the story stays in the news, however, she said more consumers may “become a little more wary about spending extra for the premium brands.”


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This page contains a single entry by swanksalot published on March 21, 2007 9:34 AM.

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