““In February 2010, Ad Age reported that Wal-Mart had consolidated its stocked range of food bags from three brands, Ziploc, Glad and Hefty, down to the market leader, Ziploc, and their own Great Value private label offering.3 Pactiv, the makers of Hefty, gained the consolation prize of the contract to manufacture the Great Value products, whereas the owners of Glad lost their entire food bag business in Wal-Mart. Wal-Mart could do this easily as, unlike many other retailers, they consolidate all manufacturer payments into the buying price and pass on most of the benefit to the shopper in lower prices. Retailers who take manufacturer payments to their bottom line are sometimes unwilling to give up the short-term benefit of such payments for the longer-term return of better margins from their private label. The secondary brands that are targeted by private label are usually big payers of trade spend to make up for their lower level of consumer appeal versus the top brands.””
