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Strategies & Market Trends : Value Investing
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To: Spekulatius who wrote (61768)2/27/2019 7:53:42 PM
From: Elroy  Read Replies (1) of 78958
 
Believe it is correct that brands are just not worth as much any more.

For food products I disagree.

People buy food often enough that we've all tested whether the branded can of beans or the generic can of beans is the same, or not. If the branded beans are better than the generic can of beans, we'll pay for the brand (if we can afford it).

So I think in BGS's case the question is whether Green Giant green beans (or whatever) tastes better than the cheaper competitor. Maybe they don't, so the issue for foods would be quality, not brand.

Like Aunt Jemima syrup would probably suffer if brands lose importance. It's hard to believe one syrup is noticeably better than another. But for other foods, if the branded food is better than the generic alternative, consumers will realize this after a few switches back and forth, and stick with the better quality mashed potato (if they can afford).
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