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john65pennington's avatar

Are most "store brand" items made by the "name brand" manufacturer?

Asked by john65pennington (29268points) January 20th, 2011

WalMart has its own food brand(Great Value). Most of their store-brand food items are hard to distinguish from the brand names. Question: Since WalMart does not build a factory just to make their own store brand of foods, is the packaging and name the only difference or does WalMart have their own specifications for food items, like canned soup? Their current promo is to reduce the sodium content in many canned items, so how does WalMart accompish this?

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11 Answers

KatawaGrey's avatar

I used to work at a major chain that sells store-brand products and one of the first things I was told during training is to always suggest the store-brand product first because the company makes ore money off of their own products than name-brand products.

I have no idea how Wal-Mart does what it does.

john65pennington's avatar

KatawaGrey, i have no idea, either. i guess when you are number one, you can call the shots and expect everyone else to jump. this occured with Coca Cola and WalMart. and, WalMart was the winner. had to do with consumer pricing.

Seelix's avatar

My mom once told me that no name peanut butter is made by Kraft, but I don’t know if it’s true. She might have been just trying to make me stop complaining. The no name had a skateboarding beaver on the jar.

Nullo's avatar

I believe that some of Wal-Mart’s generics are made by third-party manufacturers.
Wal-Mart’s Mountain Lightning (generic for Mountain Dew) rings up as “Mountain Dew.”

I know for a fact that, while the rotisserie chickens at Sam’s Club say Member’s Mark on the label (a recent development), they are in fact provided and seasoned by Tyson. This was more or less contemporaneous (call it a month’s difference) with an increase of about $0.10 in the cost of the rotisserie chickens.
I believe that the price increase was determined by the department, though, and not by the Arkansas Overlords.

jca's avatar

When a factory makes more than one brand of a product, say when a cracker factory makes Ritz and also makes no name, they do various “runs.” They will do their own run, manufacture, package, whatever. Then they will stop everything, put in ingredients for the no name run, manufacture, package. Then they will stop everything, put in ingredients for another generic brand, manufacture, package. In this way the same factory can manufacture several different brands of the same type of product.

woodcutter's avatar

i can’t honestly tell the store brands apart from the name brands. They must come from somewhere from an established producer. I don’t think there are
generic only factories doing this. They must be saving money on the labels to make the profits they need. So we can get a Del Monte product that has umpteen different colors on the can or the same thing in a yellow label that just reads “corn” Yum.

BarnacleBill's avatar

Private label food manufacturers is a huge segment of the processed foods market. Large retailers like Walmart put pressure on private label manufacturers to compete with branded products on both taste, quality and price.

klutzaroo's avatar

The people who make Peter Pan peanut butter make the Walmart stuff.

Found this out with the salmonella scare.

downtide's avatar

I used to work for a frozen food wholesaler. The company would buy products in bulk and then ship them off to the stores. The product codes for the generic store-branded products were exactly the same as the product codes for the branded stuff, and they came from the same supplier.

sleuth's avatar

No they’re made by Chinese slaves in outer Mongolia then stamped with the company label by Indian troglodytes.

JLeslie's avatar

Some private label, also called store brands, are made by brand manufacturers. Sometimes it is their own specifications, sometimes not. Sometimes the store brand takes the lesser quality veggies for instance that don’t meet the standards of the other products produced by that brand, so the private label is cheaper. At times the product is the same quality, but it is still cheaper, because the advertising costs are not in there like they are for Birds Eye, Green Giant, etc. As far as store brands go you just have to try them and see if you like them as much. My Kroger has become overrun with their store brands, and for me most are inferior. At Target, their frozen gourmet pizza, I think it is Archer Farms, is really good. Growing up I like store brand Giant English muffins better than Thomas’ English Muffins. It’s hit or miss.

Also, it can be the brand is giving specs to a manufacturer, but they don’t own the manufacturing facility. So many “brands” are coming out of the same plant.

I have had employees at store say, buy our brand, it comes out of the same factory as X, but that in no way is the same as saying it is the same product as X. It might be, it might not be.

Even with clothing, Gruppo GFT for instance makes some Armani, Joseph Abboud, Calvin Klein, each vendor has their own specifications for style, fabric, quality.

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