Competition… at any cost?
So, Heinz has made a bit of a fuss about the growth of private-label or in-house brands in our major supermarkets. According to Fairfax publications, “William Johnson, executive chairman, CEO and president of the $US16.4 billion Pittsburgh-based Heinz, told investors the company has had to rework its strategy in Australia to cope with the growing domination of private label goods and the never-ending discounting on branded goods by the supermarket chains,” with Mr Johnson labelling Australia as the “worst market” to do business. Obviously, Johnson and other national brands should be doing everything they can to try and deal with this growth in supermarket private-label brands. It is in their interests to have as much of their product on the supermarket shelves as possible.
Despite a clear and substantial increase in the amount and quality of information available to the modern consumer through globalisation, and communication advances, we still don’t always make decisions that are in our best interests, particularly in the areas where politicians and lawyers seem to spend a lot of time, such as financial, telecommunications, and even competition policy. So what can policy makers do to at least create an environment of better consumer outcomes?