Kraft, Kellogg and Colgate-Palmolive this week all reported strong revenue growth amid price increases. On the losing side, Unilever and SABMiller upped prices only to have consumers trade down to
other brands.
Why the discrepancies? Possible factors include a more stalwart following for U.S.-based brands (Unilever and SABMiller are both foreign-owned), the resurgence of private
label, ads that play up emotional appeal, and less-mobile consumers spending more on food at the supermarket as they cut back on eating out.
James Gregory, CEO of Corebrand, says consumer
sentiment for American-based brands is typically high during a recession. Another contributing factor is the rise in private-label store brands and the range of alternatives available in a particular
retail category, says Frank Jones, vp at AlixPartners.
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