I used to manage route sales. For instance, store brand bread is made and distributed by a name brand company. Because of this, the name brand company had more and better shelf space than other brands.
Few companies would make only store brand products since more markup is on name brand.
younghorse t1_jaf1la9 wrote
Reply to ELI5: if it's cheaper for stores to sell store branded same item why won't they fully/dramatically abandon name brands? by Then_Mountain_9893
I used to manage route sales. For instance, store brand bread is made and distributed by a name brand company. Because of this, the name brand company had more and better shelf space than other brands.
Few companies would make only store brand products since more markup is on name brand.