--- title: "Meaning & Key Takeaway of: Manufacturers have one advantage that can…" description: "\"“Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an id..." image: "https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg" --- # Manufacturers have one advantage that can never be… ![“Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal category for private label to take the lion’s share, has seen private label share decline. The top-five leaders, Danone, Yoplait/Sodiaal, Yakult…” quote by Greg Thain](https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg) [Download](https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg) [Open image](https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg) > ““Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal category for private label to take the lion’s share, has seen private label share decline. The top-five leaders, Danone, Yoplait/Sodiaal, Yakult Honsha, Nestlé and Müller, represent half of all yogurt sales. Their innovation has been developing premium products, like pro-biotic yogurt and yogurt enhanced with fruit, and they launch continually; between 2006 and 2010 Danone introduced nine new products. Although retailers have developed brands, Aldi has Fit & Active non-fat yogurt and Kroger has Carb Master Yogurt, they haven’t won over consumers, owing to their lack of innovation. Both are seeing sales decline.”” [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Innovation is the decisive factor for manufacturers to stay ahead, while private label lacks it and loses market share. **In simple terms:** Innovation drives success; lack of it leads to decline. Key Takeaway Focus on continuous product innovation. Themes competition market competition product development brand loyalty consumer trends Mood analytical critical Type business industry When to use this quote - launching new yogurt lines - strategic brand partnerships - consumer research - marketing campaigns Key Concepts premium positioning product differentiation R&D investment Questions to Reflect On - How can private label brands innovate effectively? - What barriers prevent retailers from investing in R&D? A Different Perspective Private label may succeed with strong branding despite limited innovation. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Developed Brands](https://sms4smile.com/quotes/about/developed-brands-4032630/) [Innovation Yogurt](https://sms4smile.com/quotes/about/innovation-yogurt-4032628/) [Investing](https://sms4smile.com/quotes/about/investing/) [Marketing](https://sms4smile.com/quotes/about/marketing/) [Private Label](https://sms4smile.com/quotes/about/private-label-903804/) [Yogurt Sales](https://sms4smile.com/quotes/about/yogurt-sales-4032629/) [Yogurt Yogurt](https://sms4smile.com/quotes/about/yogurt-yogurt-4032631/) ## Related quotes > [“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending…](https://sms4smile.com/quotes/greg-thain/as-retailers-have-become-competitors-of-manufacturers-in-many-product/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of the growth…](https://sms4smile.com/quotes/greg-thain/private-label-is-booming-in-europe-and-the-united-states-during-the/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [The difference between Los Angeles and yogurt is that yogurt comes with less fruit.](https://sms4smile.com/quotes/rush-limbaugh/the-difference-between-los-angeles-and-yogurt-is-that-yogurt-comes/) [Rush Limbaugh](https://sms4smile.com/quotes/author/rush-limbaugh/) > [“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically…](https://sms4smile.com/quotes/greg-thain/this-is-because-the-quality-and-innovation-of-retailer-brands-is-2/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Of the Top Most Valued Brands in 2011, Coca-Cola and Marlboro were 6th and 8th, with their brands valued at $73.8 billion and $67.5…](https://sms4smile.com/quotes/greg-thain/of-the-top-most-valued-brands-in-2011-coca-cola-and-marlboro-were-6th/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Cullen’s model of selling top brands at cost then morphed into their being sold as loss-leaders, owing to the inexorable need to attract shoppers…](https://sms4smile.com/quotes/greg-thain/cullen-s-model-of-selling-top-brands-at-cost-then-morphed-into-their/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Although private label shoppers benefit from not having to pay for flashy advertising, private labels miss out on a key brand role: being vehicles…](https://sms4smile.com/quotes/greg-thain/although-private-label-shoppers-benefit-from-not-having-to-pay-for/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“This is because the quality and innovation of retailer brands is limited to what they can negotiate from manufacturers. For products that are technologically…](https://sms4smile.com/quotes/greg-thain/this-is-because-the-quality-and-innovation-of-retailer-brands-is/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“The premium private label strategy is only possible when manufacturers have allowed a quality–value gap to open. This happens when manufacturers’ either price their…](https://sms4smile.com/quotes/greg-thain/the-premium-private-label-strategy-is-only-possible-when/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“retailers are developing their own brand equities via impressive private label strategies (see Chapter 9) and will begin seeing brand premiums being factored into…](https://sms4smile.com/quotes/greg-thain/retailers-are-developing-their-own-brand-equities-via-impressive/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved…](https://sms4smile.com/quotes/greg-thain/owing-to-the-ever-increasing-pressure-on-space-as-retailers-continue/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“P&G, Mars, Kellogg’s, Gillette and Coca-Cola all refuse private label contracts, while, on the other hand, Unilever, PepsiCo, Nestlé, Heinz, Playtex, Ralston Purina, Hershey,…](https://sms4smile.com/quotes/greg-thain/p-g-mars-kellogg-s-gillette-and-coca-cola-all-refuse-private-label/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Because retail brands are barely differentiated, they are relatively fragile when compared to the largest manufacturer brands, despite having, in general, much higher awareness…](https://sms4smile.com/quotes/greg-thain/because-retail-brands-are-barely-differentiated-they-are-relatively/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will be second…](https://sms4smile.com/quotes/greg-thain/if-the-manufacturer-can-convince-the-retailer-that-delisting-will/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Marketing aims/image: A retailer that has positioning aims (e.g. trying to improve its image with respect to healthy food or trying to upstage wholesaler…](https://sms4smile.com/quotes/greg-thain/marketing-aims-image-a-retailer-that-has-positioning-aims-e-g-trying/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) ## More by Greg Thain > [“Marketing aims/image: A retailer that has positioning aims (e.g. trying to improve its image with respect to healthy food or trying to upstage wholesaler…](https://sms4smile.com/quotes/greg-thain/marketing-aims-image-a-retailer-that-has-positioning-aims-e-g-trying/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Every dominant brand (such as those listed in Table 5.1) has had to reinvest in mindspace every year to keep its position. However, things…](https://sms4smile.com/quotes/greg-thain/every-dominant-brand-such-as-those-listed-in-table-5-1-has-had-to/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“consolidation, coupled with a desire among the survivors to restore normal profit levels, helps to usher in an era of orderly competition based on…](https://sms4smile.com/quotes/greg-thain/consolidation-coupled-with-a-desire-among-the-survivors-to-restore/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“If the manufacturer can convince the retailer that delisting will hurt consumer satisfaction and possibly lead to store switching, then that will be second…](https://sms4smile.com/quotes/greg-thain/if-the-manufacturer-can-convince-the-retailer-that-delisting-will/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“As retailers have become competitors of manufacturers in many product categories, they reserve more shelfspace for their private label brands and dominate advertising spending…](https://sms4smile.com/quotes/greg-thain/as-retailers-have-become-competitors-of-manufacturers-in-many-product/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“High fixed costs mean that high volumes are an ever-essential objective. One”](https://sms4smile.com/quotes/greg-thain/high-fixed-costs-mean-that-high-volumes-are-an-ever-essential/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Importance of price: Price is imperative for FMCG retailers, much more so than for manufacturers. Retailers must constantly keep their real prices competitive and put…](https://sms4smile.com/quotes/greg-thain/importance-of-price-price-is-imperative-for-fmcg-retailers-much-more/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Hoping to create a little prestige, some retailers develop and advertise premium clothes sub-brands. In 2006, Myer, one of Australia’s largest retailers, launched a…](https://sms4smile.com/quotes/greg-thain/hoping-to-create-a-little-prestige-some-retailers-develop-and/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“The shift of power to retailers is not an inevitable phenomenon: technological changes and associated innovative ideas have been instrumental in moving power and…](https://sms4smile.com/quotes/greg-thain/the-shift-of-power-to-retailers-is-not-an-inevitable-phenomenon/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Because retail brands are barely differentiated, they are relatively fragile when compared to the largest manufacturer brands, despite having, in general, much higher awareness…](https://sms4smile.com/quotes/greg-thain/because-retail-brands-are-barely-differentiated-they-are-relatively/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“There are some FMCG categories where retailers are destined to control mindspace. These are the low-technology, low-image, low-novelty areas. Retailers are likely to be…](https://sms4smile.com/quotes/greg-thain/there-are-some-fmcg-categories-where-retailers-are-destined-to/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“In markets where consumers are sensitive to quality differences (e.g. washing powder, instant coffee, sanitary protection) the share for generics and copycats usually plateaus…](https://sms4smile.com/quotes/greg-thain/in-markets-where-consumers-are-sensitive-to-quality-differences-e-g/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Direct consumer contact is an advantage for retailers, as 70% of shoppers make purchase decisions in stores and are thus open to last-minute persuasion. The”](https://sms4smile.com/quotes/greg-thain/direct-consumer-contact-is-an-advantage-for-retailers-as-70-of/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“Fresh produce and other ‘destination’ products can create a sustainable differential advantage, as they have the potential for deciding the destination of the shopper.…](https://sms4smile.com/quotes/greg-thain/fresh-produce-and-other-destination-products-can-create-a-sustainable/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) > [“PRIVATE LABEL IS booming. In Europe and the United States during the period 2000–2010, private label was responsible for the majority of the growth…](https://sms4smile.com/quotes/greg-thain/private-label-is-booming-in-europe-and-the-united-states-during-the/) [Greg Thain](https://sms4smile.com/quotes/author/greg-thain/) [Explore all 206 Greg Thain quotes ](https://sms4smile.com/quotes/author/greg-thain/) ## More Customer quotes > [“Start a business, not a startup”](https://sms4smile.com/quotes/anonymous/start-a-business-not-a-startup/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term…](https://sms4smile.com/quotes/barry-ritholtz/amongst-the-financial-twitterati-the-term-muppets-has-come-to/) [Barry Ritholtz](https://sms4smile.com/quotes/author/barry-ritholtz/) > [Many early-stage entrepreneurs make one simple mistake: Describing this 'big picture' in vague concepts and words.](https://sms4smile.com/quotes/sunil-nagaraj/many-early-stage-entrepreneurs-make-one-simple-mistake-describing/) [Sunil Nagaraj](https://sms4smile.com/quotes/author/sunil-nagaraj/) > [The purpose of this book is to supply, in the form suitable for laymen, guidance in the adoption and execution of an investment policy.](https://sms4smile.com/quotes/benjamin-graham/the-purpose-of-this-book-is-to-supply-in-the-form-suitable-for-laymen/) [Benjamin Graham](https://sms4smile.com/quotes/author/benjamin-graham/) > [Don't think OF the market. Think AS the market.](https://sms4smile.com/quotes/michael-fishman/don-t-think-of-the-market-think-as-the-market/) [Michael Fishman](https://sms4smile.com/quotes/author/michael-fishman/) > [If Wall Street crashes, does Main Street follow? Not necessarily.](https://sms4smile.com/quotes/ben-bernanke/if-wall-street-crashes-does-main-street-follow-not-necessarily/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [The exact details of how you practice value investing will vary investor to investor, but the fundamental principle of scouring the world, looking for…](https://sms4smile.com/quotes/whitney-tilson/the-exact-details-of-how-you-practice-value-investing-will-vary/) [Whitney Tilson](https://sms4smile.com/quotes/author/whitney-tilson/) > [The best way to hold customers is to constantly figure out how to give them more for less.](https://sms4smile.com/quotes/philip-kotler/the-best-way-to-hold-customers-is-to-constantly-figure-out-how-to/) [Philip Kotler](https://sms4smile.com/quotes/author/philip-kotler/) > [Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen…](https://sms4smile.com/quotes/peter-schiff/perhaps-the-most-important-reason-to-be-skeptical-of-government/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [When the dollar collapses, it's not doing it in a vacuum. If the dollar loses value, it's doing so relative to some other currency.…](https://sms4smile.com/quotes/peter-schiff/when-the-dollar-collapses-it-s-not-doing-it-in-a-vacuum-if-the-dollar/) [Peter Schiff](https://sms4smile.com/quotes/author/peter-schiff/) > [Corporations invest in sophisticated CRM, or Customer Relationship Management, programs to effectively oversee their relationship with their customers at every point during the buying…](https://sms4smile.com/quotes/marc-ostrofsky/corporations-invest-in-sophisticated-crm-or-customer-relationship/) [Marc Ostrofsky](https://sms4smile.com/quotes/author/marc-ostrofsky/) > [I believe confusion is good. Worldwide market leaders gain when there is confusion in the market.](https://sms4smile.com/quotes/subhash-chandra/i-believe-confusion-is-good-worldwide-market-leaders-gain-when-there/) [Subhash Chandra](https://sms4smile.com/quotes/author/subhash-chandra/) > [Damn inflation, full speed ahead,' Greenspan has said in both action and word. I think an investor should believe him and invest accordingly.](https://sms4smile.com/quotes/bill-gross/damn-inflation-full-speed-ahead-greenspan-has-said-in-both-action-and/) [Bill Gross](https://sms4smile.com/quotes/author/bill-gross/) > [“When companies get big, they devote most of their care and feeding to the business that got them big. This is as it should…](https://sms4smile.com/quotes/eric-schmidt/when-companies-get-big-they-devote-most-of-their-care-and-feeding-to/) [Eric Schmidt](https://sms4smile.com/quotes/author/eric-schmidt/) > [“Salesmanship is usually the art of making it the prospect’s problem, the salesperson’s need or desire to earn money.”](https://sms4smile.com/quotes/mokokoma-mokhonoana/salesmanship-is-usually-the-art-of-making-it-the-prospect-s-problem/) [Mokokoma Mokhonoana](https://sms4smile.com/quotes/author/mokokoma-mokhonoana/) [Browse all 9,257 Customer quotes ](https://sms4smile.com/quotes/about/customer/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and that is innovation. Yogurt, seemingly an ideal category for private label to take the lion’s share, has seen private label share decline. The top-five leaders, Danone, Yoplait/Sodiaal, Yakult Honsha, Nestlé and Müller, represent half of all yogurt sales. Their innovation has been developing premium products, like pro-biotic yogurt and yogurt enhanced with fruit, and they launch continually; between 2006 and 2010 Danone introduced nine new products. Although retailers have developed brands, Aldi has Fit & Active non-fat yogurt and Kroger has Carb Master Yogurt, they haven’t won over consumers, owing to their lack of innovation. Both are seeing sales decline.”", "creator": { "@type": "Person", "name": "Greg Thain" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/greg-thain/manufacturers-have-one-advantage-that-can-never-be-overcome-if-used/", "about": { "@type": "Thing", "name": "Customer" }, "@id": "https://sms4smile.com/quotes/greg-thain/manufacturers-have-one-advantage-that-can-never-be-overcome-if-used/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg", "contentUrl": "https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg", "url": "https://sms4smile.com/quotes/i/003/greg-thain-1820_investing_manufacturers-have-one-advantage-that-ca_2076279.jpg", "width": 1080, "height": 1080, "caption": "“Manufacturers have one advantage that can never be overcome if used with focus, vigour and investment, and…” — Greg Thain", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Greg Thain", "item": "https://sms4smile.com/quotes/author/greg-thain/" }, { "@type": "ListItem", "position": 4, "name": "“Manufacturers have one advantage that can...", "item": "https://sms4smile.com/quotes/greg-thain/manufacturers-have-one-advantage-that-can-never-be-overcome-if-used/" } ], "@id": "https://sms4smile.com/quotes/greg-thain/manufacturers-have-one-advantage-that-can-never-be-overcome-if-used/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```