Brand Tax And IIts Margin

[The Hooded Claw]

Kellogg’s have always advertised that they don’t make cereals for anyone else.
Even if they did, they wouldn’t simply repackage the premium product. It would be a diluted one, because the own labels have wafer-thin profit margins.
The reason for this is that supermarkets are not relying on the own-label products to make profits. They are there to tempt you in to store, so that you buy the branded products, which have much higher margins.
The comment about Tesco not allowing the use of ‘Tesco’s’ is standard practice for brand management across any business, which will have strict guidelines around logos, fonts and “tone of voice”, which is the language used in all their communications.

[Taunton Blue Genie]

Kellogg’s have always advertised that they don’t make cereals for anyone else.
Even if they did, they wouldn’t simply repackage the premium product. It would be a diluted one, because the own labels have wafer-thin profit margins.
The reason for this is that supermarkets are not relying on the own-label products to make profits. They are there to tempt you in to store, so that you buy the branded products, which have much higher margins.
The comment about Tesco not allowing the use of ‘Tesco’s’ is standard practice for brand management across any business, which will have strict guidelines around logos, fonts and “tone of voice”, which is the language used in all their communications.

Similar to 'Kellogg's' (a brand that includes the genetive form in the first place), 'Thatchers' cider company (and whose brand name is in the genetive form despite the dropping of the apostrophe, the company belonging to the Thatcher family) refuse to sell any form of their products under any supermarket brand - and despite requests to do so.