http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/?utm_source=rss&utm_medium=rss&utm_campaign=the-beverage-glass-half-empty-or-half-full Opinions. Commentary. News. Sun, 12 Feb 2012 02:23:11 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/comment-page-1/#comment-43403 Ted Mininni Thu, 17 Dec 2009 12:00:29 +0000 http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/#comment-43403 Hi John, You've raised a very good point and I thank you for posting it here. Simply put: many small to mid-sized distributors have a fairly short local and regional reach. They may not have the capability to do what you suggest. Unless they sell to retail chains or reach out to other distributors to try to strike a deal, their brands are likely to remain in the hands of a few locsl retailers. And that might meet with resistance as these players may prefer to develop their own brands. That doesn't mean for all their capital and time investment the brands these distributors develop don't add to their top and bottom lines. Interestingly, the large West coast food retailer, Safeway, has been warehousing and distributing some of its store brands to other supermarket chains in recent months. This is a first in the food business. We'll have to see whether the additional volume and profit dollars are worth their investment. It should be interesting to see the direction private label goes in over the next couple of years. I appreciate your adding great comments to this post, John. Hi John,
You’ve raised a very good point and I thank you for posting it here. Simply put: many small to mid-sized distributors have a fairly short local and regional reach. They may not have the capability to do what you suggest. Unless they sell to retail chains or reach out to other distributors to try to strike a deal, their brands are likely to remain in the hands of a few locsl retailers. And that might meet with resistance as these players may prefer to develop their own brands.
That doesn’t mean for all their capital and time investment the brands these distributors develop don’t add to their top and bottom lines.
Interestingly, the large West coast food retailer, Safeway, has been warehousing and distributing some of its store brands to other supermarket chains in recent months. This is a first in the food business. We’ll have to see whether the additional volume and profit dollars are worth their investment.
It should be interesting to see the direction private label goes in over the next couple of years.
I appreciate your adding great comments to this post, John.

]]> http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/comment-page-1/#comment-43402 John S. Thu, 17 Dec 2009 10:21:51 +0000 http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/#comment-43402 This is like hell stuck. I can't imagine why people after so much of dedicated hard-work on creating their own brands in county-level distribution, they want sell out their brands to big players, why don't they think of their own brand to become a global player. When you have invested so much of your time, money, passion, and dedicated hard work in building a brand, don't give up at any time, think big and make it work in much more bigger way. This is like hell stuck. I can’t imagine why people after so much of dedicated hard-work on creating their own brands in county-level distribution, they want sell out their brands to big players, why don’t they think of their own brand to become a global player. When you have invested so much of your time, money, passion, and dedicated hard work in building a brand, don’t give up at any time, think big and make it work in much more bigger way.

]]> http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/comment-page-1/#comment-43401 windboy Thu, 17 Dec 2009 06:54:44 +0000 http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/#comment-43401 very nice...thanks... very nice…thanks…

]]> http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/comment-page-1/#comment-43400 Ted Mininni Wed, 16 Dec 2009 21:47:24 +0000 http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/#comment-43400 Paul, Thanks for sharing your thoughts on my post. I appreciate it. I know what you're saying about "can the market take one more flavored or value-added functional beverage"? I have to tell you though, private label is hot. So hot that retailers want to push development of more store brand lines. So this isn't as far-fetched as it might seem at first blush. In fact, I'd like to quote from a recent article I published on Chief Marketer's site: "During the past year, store brand sales have increased by 10% versus 2% for national brands. According to Nielsen, while store brands comprise just over 10% of most retailers' total product mix, they also account for over 20% of sales, with a better than two-to-one turn rate." In view of recent developments, wholesalers are smart to tap into their retail customers' desire for more house branded merchandise. van Stolk is pretty astute and he sees a way of leveraging his past success and cashing in. Can't blame him. Paul,
Thanks for sharing your thoughts on my post. I appreciate it.
I know what you’re saying about “can the market take one more flavored or value-added functional beverage”? I have to tell you though, private label is hot. So hot that retailers want to push development of more store brand lines. So this isn’t as far-fetched as it might seem at first blush. In fact, I’d like to quote from a recent article I published on Chief Marketer’s site: “During the past year, store brand sales have increased by 10% versus 2% for national brands. According to Nielsen, while store brands comprise just over 10% of most retailers’ total product mix, they also account for over 20% of sales, with a better than two-to-one turn rate.”
In view of recent developments, wholesalers are smart to tap into their retail customers’ desire for more house branded merchandise. van Stolk is pretty astute and he sees a way of leveraging his past success and cashing in. Can’t blame him.

]]> http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/comment-page-1/#comment-43399 Paul B Wed, 16 Dec 2009 21:23:12 +0000 http://www.mpdailyfix.com/the-beverage-glass-half-empty-or-half-full/#comment-43399 Ted, I'm really torn on this one. I like the idea of wholesalers taking control of their own destiny by producing their own house brands that cannot be sold out from underneath them. However, unless you are a regional retailer looking for differentiation, I think more house brands are going to have a tough time getting shelf space in a very competitive environment where choice is culled and margins are shrinking. I suppose there will always be a market for "what's new" and niche products, but how many more ways can water be flavored or carbonated? :) Ted, I’m really torn on this one. I like the idea of wholesalers taking control of their own destiny by producing their own house brands that cannot be sold out from underneath them. However, unless you are a regional retailer looking for differentiation, I think more house brands are going to have a tough time getting shelf space in a very competitive environment where choice is culled and margins are shrinking. I suppose there will always be a market for “what’s new” and niche products, but how many more ways can water be flavored or carbonated?

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