Tesco are pulling products off shelves their latest is Carlsberg lager they are soon going to be left with very few if any branded products. They have pulled products like schweppes, Ribena, just what is this organisation up too? It is my opinion that they will eventually get rid of just about every brand product and go down the ALDI/LIDL route, stocking the shelves with mainly own brand products from their value to the speciality range. They will try and squeeze the brand suppliers out of business, just like they did to local shops.
If the customers let them do this and brand names disappear from shelves then that will be it for the brand names and eventually Tesco, if they are allowed to get away with it, they are hoping to get the product from the makers at cost, or less, if they don't comply then they are, IMHO, refusing to stock them.
They are effectively holding suppliers to ransom, telling them how much they want and how much they will pay then charging the customers top price, it is time the supermarkets were made to display how much they paid the manufacturer per unit, be it a can or tin, the only way suppliers can compete with demands from supermarkets is to pay the producers less per unit, just like they've done with milk, they pay less but expect the customer to pay the same or more. It's the same with other supermarkets with their 3 for £10 offers they still cost £10, take the cost of mince as an example the first time I bought it you 800g now you get 600g, that's 25% less for the same price and it's the same with all 3 for £10 offers meat cut thinner and less weight but the same number of items in the box but they weigh less.
Once one supermarket does it the others follow, it's the customers who hold the power when shopping not the supermarket, think about it for a minute, if you don't shop there they don't make the money and stuff is reduced because they cannot sell it.
The one thing that any supermarket hates is to see a potential customer go into the store and leave without making a purchase! They wiped out most of the local stores now they want to wipe out the branded product makers, well maybe not wipe them out, but hit them so hard they have no option but to get out by selling to the supermarkets at a low price, then after a while you see a store full of own brand products that creep up in price until they are charging the price that the brand product supplier wanted to charge in the first place. It's called wiping out the competition, they either submit and take the loss or go bust and the supermarket steps in and buys it for virtually nothing and uses the recipe to improve their own products. Once they have removed the competition they go on to increase the prices has they now hold the monopoly they have in all effect removed the premium brand suppliers and can steadily raise their own brand prices and the losers in all this are the low paid and benefit claimants who cannot afford the increased prices.
If the customers let them do this and brand names disappear from shelves then that will be it for the brand names and eventually Tesco, if they are allowed to get away with it, they are hoping to get the product from the makers at cost, or less, if they don't comply then they are, IMHO, refusing to stock them.
They are effectively holding suppliers to ransom, telling them how much they want and how much they will pay then charging the customers top price, it is time the supermarkets were made to display how much they paid the manufacturer per unit, be it a can or tin, the only way suppliers can compete with demands from supermarkets is to pay the producers less per unit, just like they've done with milk, they pay less but expect the customer to pay the same or more. It's the same with other supermarkets with their 3 for £10 offers they still cost £10, take the cost of mince as an example the first time I bought it you 800g now you get 600g, that's 25% less for the same price and it's the same with all 3 for £10 offers meat cut thinner and less weight but the same number of items in the box but they weigh less.
Once one supermarket does it the others follow, it's the customers who hold the power when shopping not the supermarket, think about it for a minute, if you don't shop there they don't make the money and stuff is reduced because they cannot sell it.
The one thing that any supermarket hates is to see a potential customer go into the store and leave without making a purchase! They wiped out most of the local stores now they want to wipe out the branded product makers, well maybe not wipe them out, but hit them so hard they have no option but to get out by selling to the supermarkets at a low price, then after a while you see a store full of own brand products that creep up in price until they are charging the price that the brand product supplier wanted to charge in the first place. It's called wiping out the competition, they either submit and take the loss or go bust and the supermarket steps in and buys it for virtually nothing and uses the recipe to improve their own products. Once they have removed the competition they go on to increase the prices has they now hold the monopoly they have in all effect removed the premium brand suppliers and can steadily raise their own brand prices and the losers in all this are the low paid and benefit claimants who cannot afford the increased prices.
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