Brands Fight Back

The Lempert Report
May 12, 2022

Phil: And talking about making money looks like the major brands are up in arms. They wanna fight, the private label increase that we've seen certainly during the pandemic and even before the pandemic. So now, the CEO of Clorox announced that they're gonna increase promotions. Now promotions have really gone away during the pandemic because retailers and manufacturers didn't know what products they would actually have on the shelves. And you know, that's what they're gonna do. 

Phil: They're, they're gonna try to really compete with store brands. However, this article that was in Yahoo finance also pointed out that if you bought tide free and genuine, no free and gentle detergent, it's $12 and 97 cents on and Walmart's great value free and clear brand is $8 and 67 cents. So there's a difference of $4, $4 and 30 cents. And I've gotta tell you that. I think with that kind of difference we're gonna have some severe wars going on, P & G has also announced, that's the maker of tide that it's shifting its marketing to make more overt claims about the value in its costlier products. I don't understand what are overt claims about the value in your costlier products? I could see them, you know, promoting the tide, you know, is a better product than a store brand or whatever, but I, I am anxious to see what overt claims about value is all about from P & G. 

Sally: Yes. And I really think it's interesting with these household products like this, because I think back to my mom and how there was such loyalty to, you know, one of them mentioned in here cascade cascade was the only detergent that, you know, would work, but now with the price differences it's, you know, it's a lot easier to let that loyalty to that brand go. Especially if you take a look at the ingredients and you see that, you know, they're comparable. I think what would be really interesting to see, especially with these household products, is them, promoting more sustainable packaging for these, or, you know things that consumers are interested in paying more for these days. 

Phil: Yeah. Or just not switching away from and, you know, but, but we are gonna see these price increases continue. We are gonna see more shortages. We're gonna see inflation continue. I mean, the, the issue and I was talking to a farmer this morning the issue is really the price of, of, you know, diesel and, and gasoline and how that's affecting everything. And, you know, that is going to affect the price of meats and, and produce and just about everything else.