this post was submitted on 27 Jan 2024
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In some cases it’s actually the same product made by a big brand. They might be losing money (or just not making as much profit), but it denies profit to the competitors, so it’s still considered a win.
To counter this I used to visit some factories for a big contract manufacturer in the UK. They would often make say lasagne for the supermarkets and for the "premium" brands. Whilst they were all made in the same place, the "premium" brands products had much better quality ingredients in them and different ratios of the good stuff (say meat) to filler (say pasta sheets).
For some things it's the exact same materials, but for many it's different. You have to do blind taste tests to see which ones you prefer.
You’re conflating copackers with brands.
Store brands will go to the same copackers, truth. But the copacker will not just make a premium brand product for a store brand at a lower cost. It will be a recipe made to a taste/price spec. Maybe all the ingredients are sourced from the same place, but the recipe will be different.
What can be nearly identical are branding tiers. Large companies like Unilever, Johnson & Johnson, Procter & Gamble etc will sometimes have multiple “competing” brands in the same market, all made in the same factory.