The impact of rising commodity prices
How private label brands keep prices down when their costs are rising.
BakingBusiness.com, May 2, 2011
by Mari Rydings
If you’ve done any kind of shopping these days, it’s likely you’ve noticed higher prices. No one is exempt from the rising cost of commodities. Nearly all national brands either have already increased their prices or have announced their intention to do so. Private label product prices will likely follow suit, if they haven’t already.

“It will be tough for both national brands and store brands to keep prices down,” said Kathie Canning, editorial director, Progressive Grocer’s Store Brands magazine. “But the national brands have big advertising budgets and other costs that store brands do not have that will adversely impact final pricing. I think both the national brands and the store brands will have to pass the costs on to consumers. But the price gap between them will remain, so store brands still will be priced lower.”

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