Thursday, August 12, 2010

Food industry threatened by loss of brands

A study provides increased power of trade against producers. Therefore, the diversity in the supermarket shelves is in danger.


In the German food industry threatens a loss of brands. "Provides a significant number of companies threatened the existence", said Christian Köhler, the managing director of brand association, told WORLD ONLINE. As a basic call Köhler in particular the increasing buying power of trade to the industry caused by the increasing importance of merchant-private brands and the consolidation of the retail landscape in recent years.

The brand association now provides the variety on supermarket shelves in acute danger. "There is a concentration threatens to standard products," predicted Köhler. That would above all to the detriment of medium-sized manufacturers. This is confirmed by a recent study by the econ consulting firm DIW, a subsidiary of the German Institute for Economic Research (DIW). Accordingly, the negotiating position of producers in recent years has deteriorated significantly. "There is a relatively high dependence on a few retailers," the authors write. The man replies, two thirds of the surveyed medium-brand manufacturers more than 22 percent of their turnover with only one customer. This number is valid in the European competition practice as a critical threshold. One-third achieved even with two customers each with more than 22 percent of the proceeds.

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