LAS VEGAS — Efforts by some retailers to lower prices on private-label products by asking manufacturers to reduce the quality of the ingredients they use could threaten the positive impression consumers have about house brands, a wholesale executive said here during a workshop session on food safety at the National Grocers Association's 26th annual convention. According to John Paul, vice president, sales and merchandising, for Nash Finch Co., Minneapolis, the industry's move to improve the quality of private-label products since the generics movement of the 1970s has been impacted "by the rush [by some retailers] to lessen the cost of goods by challenging manufacturers to make products for price rather than the best quality." Questioned by SN after his presentation, Paul said, "An argument could be made that that [approach] causes manufacturers to take their eye off the ball on quality. Manufacturers are no different than other businesses — if they have to lower the quality of ingredients or put less effort into meeting HAACP regulations, then quality suffers."
Read More of Today's Headlines