> Thus, it is irrelevant to the manufacturer whether the supermarket promotes their store-brand product or the name brand product; they've already been paid by

> Thus, it is irrelevant to the manufacturer whether the supermarket promotes their store-brand product or the name brand product; they've already been paid by their primary customer. Supermarket economics are more complex. Brands have to pay to go on promotion, and they have to pay to appear in the catalogue. I've heard placement fees for mailbox catalogue placements can be a significant bulk of revenue for some companies. My wife recently started in a new company with retail products and was appalled at what goes on, but it's normal. The supermarket wants to promote your product? Pay up. Per product. They choose which, not you. If you don't, there's a good chance your shelf space gets replaced by a competitor next time it's under review. If you do, you'll often lose money while it's on sale. It's a very predatory arrangement enabled by the duopoly here in AU.