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Genenerics often have better overheads because the company takes profit on more points of the production and supply chain. They're also producing products in a
by AlecSchueler 4y ago
Genenerics often have better overheads because the company takes profit on more points of the production and supply chain.
They're also producing products in almost every aisle of the supermarket and gain an economy of scale on things like only needing a single one of eg house style for every product.
- ethbr0 4y agoIt makes sense. When food brands initially took off (1950s?), my impression is that grocery stores were much more regional. There certainly wasn't anything at the scale of Walmart, Aldi, Kroger, or Publix these days. Consequently, it was easier for General Mills et al. to use economies of scale to sell quality, profitable products. Now, it's the grocery stores that can do that.