Interesting reading Rodkin's comments about Ralcorp. Ralcorp knew what they were doing in the Private Label business. I don't believe Conagra understands that business. It is a much different animal than branded.
It is going to be difficult to blend the branded and private label business. The retailers will start asking them to manufacture some of their brands under their private label banner. If they do it it will erode their brands and if they don't do it the retailer might send them packing. They have some difficult times ahead.
for one, in branded business if the manufacturer and buyer can't come to terms, the product doesn't show up on the shelves. In private label the manufacturer doesn't have as much leverage. The buyer can go to another supplier and, as far as the consumer knows, the same product is on the shelves.
Cag already does make private label products in the canning side like Walmart ,dollar store and the generic supermarket brands in pasta products. They make some bad decisions on products they own thinking the profit margins would be better but now they find out its not the case example the chef Boyardee situation. Recipe changes and can lid changes were made against market analyst suggestions. Its costing millions and I think some people should be shown the door and there are a bunch responsible.
Would like to know the NAMES of he various private label stuff made by CAG. Do they make the cereals, the canned goods, products, the store brandsodas, etc. Just how far does Cag's market penetration extend to the safeways, krogers, etc.?? just the private label products---how many? Cag's annual meeting is 9/19 in omaha--chance for any of us to quiz the CEO.