warns of the danger they hide

Journalist Javier Ruiz, head of economics at Cadena Ser, warned: a double-edged sword that symbolizes the great rise of white labels, those that are typical for supermarkets.

In an interview in Top, Ruiz noted that rising prices have forced consumers They are turning even more to white brands because they are cheaper.

“There are two theories here: they lower prices because the manufacturer, who produces other products for his brand, chooses to keep the equipment running and produce products of the same or lower quality, but which allows him to reduce costs and sell cheaper. Option number two: It’s just that when I become the exclusive supplier of the supermarket, there will be more pressure on me, They reduce my profit significantly, they make more money and I have to lower the price.” says Ruiz.

“Be that as it may, these are cheaper products. There has been an impressive increase in sales of private label products,” repeats the journalist who draws the danger of this is illustrated by some oatmeal.

“If instead of five brands you had two supermarkets controlling the oatmeal market, we have a bottleneck, less competition, we have less bargaining power, less benefit for the consumer. What’s happening is that supermarkets are increasingly controlling and making more money from their products,” he warns.

And that means that we already have “a huge mess because brand name sales were up 7% and private label sales were up 16%.

“There are such market shares that There are those who begin to condemn what exists now, these are already black marks: “You’re ruining my business so much that I stop making my product and start making it for you,” he explains.

Thus, Javier Ruiz notes, there are, for example, fabric softeners are being withdrawn from the market go to work in a supermarket chain.

“Of course, this has some short-term benefits for the consumer because they are cheaper, but there may be short-term complications. If there is no competition, the consumer will catch it sooner or later.”– he warns.